News stories from Monday January 7, 1980

Summaries of the stories the major media outlets considered to be of particular importance on this date:

Soviet troops have fanned out all across Afghanistan, setting up encampments that are said to have an air of permanence, and they are believed to be generally in control. But the Afghan insurgents who have battled the government since the Communists first took power nearly two years ago were said to be continuing resistance to some degree in virtually every region of the country.More Soviet troop movements into Afghanistan were reported by American officials, who said that the force was now up to 85,000 troops, with the total likely to rise soon to more than 100,000. The State Department angrily accused Moscow of building a large, permanent force in Afghanistan, in contradiction to pledges by the Kremlin. Afghan rebels continue to attack Soviet forces, who control the main roads and most of the cities. The war by Moslem guerrillas has sharply intensified since Moscow began pouring troops into Afghanistan, and a trip through rebel-held territory found that the guerrillas eagerly seek more guns. [New York Times] Moscow vetoed a United Nations call for the immediate withdrawal of Soviet troops from Afghanistan. The Security Council vote favoring the demand was 13 to 2, with only East Germany backing Moscow. But the Soviet vote was decisive, since Moscow is one of the five permanent Council members. Members plan to take the issue to the General Assembly, where no veto can be used. [New York Times] Washington moved to shield farmers and to calm grain markets thrown into disarray by President Carter's curtailment of grain shipments to the Soviet Union. The Carter administration announced that the government would buy up to $2.6 billion worth of corn, wheat and soybeans that were contracted for by the Russians but not yet delivered.Senator Edward Kennedy charged that the Carter administration was "lurching from crisis to crisis" in domestic and foreign policy, particularly in handling the Afghanistan situation. The presidential aspirant called on President Carter to lift the grain restriction placed against Moscow on the ground that it would hurt American farmers and other taxpayers more than the Russians. [New York Times] Kurt Waldheim reported on Iran to the United Nations Security Council and offered little indication that he had made any progress in negotiating for the release of American hostages. The Secretary General's report paved the way for the Council to debate the imposition of sanctions against Iran. [New York Times] The Ford Pinto trial began in Winamac, Ind., where the auto maker is accused of criminal homicide because of a fatal crash of a Pinto. As prospective jurors were questioned, Ford attorneys gave county prosecutors several hundred documents they had sought for possible use in the trial. The contents were not disclosed. [New York Times] The picketing of private homes for political purposes is generally illegal in Illinois, and the Supreme Court agreed to decide the constitutionality of that law. Under the 1977 statute, picketing of private residences is a misdemeanor unless the demonstration involves a labor dispute in which the resident is involved. [New York Times] A rich lode of Trotsky letters, about 17,500, has been drawing crowds of scholars to Harvard's Houghton Library since the collection opened last week. The correspondence spans Trotsky's exile from the Soviet Union in 1928 to his assassination in Mexico in 1940 by an agent of Stalin. [New York Times] The victory by Indira Gandhi's backers assumed landslide proportions as the continuing vote count showed them far ahead of all other Indian parties. The former Prime Minister's faction of the Congress Party seemed virtually assured of gaining a majority of the 542 seats in the lower house. [New York Times] An Israeli-Egyptian summit meeting began in Aswan, Egypt. Prime Minister Begin, who will stay four days, and President Sadat have offered Washington military facilities because of the Iranian and Afghan crises. [New York Times]

Stock Market Report

Dow Jones Industrial Average: 832.00 (+3.16, +0.38%)
S&P Composite: 106.81 (+0.29, +0.27%)
Arms Index: 0.77

	Issues	Volume*
Advances	914	26.06
Declines	625	13.64
Unchanged	370	4.80
Total Volume		44.50

* in millions of shares

Arms Index is the ratio of volume per declining issue to volume per advancing issue; a figure below 1.0 is bullish.

Market Index Trends
Date	DJIA	S&P	Volume*
January 4, 1980	828.84	106.52	39.16
January 3, 1980	820.31	105.22	50.47
January 2, 1980	824.57	105.76	40.61
December 31, 1979	838.74	107.94	31.53
December 28, 1979	838.91	107.84	34.42
December 27, 1979	840.10	107.96	31.40
December 26, 1979	838.14	107.78	24.95
December 24, 1979	839.16	107.66	19.15
December 21, 1979	838.91	107.59	36.16
December 20, 1979	843.34	108.26	40.39