News stories from Friday December 9, 1977

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

A multibillion-dollar increase in Social Security payroll taxes was agreed to by House-Senate conferees, but an impasse over a college tuition tax credit opposed by the administration prevented them from reporting the bill. The administration made a futile last-minute attempt to persuade Senators to accept a four-month study of problems of financing higher education instead of the credit. [New York Times] Energy conferees in Congress are discussing a compromise on natural gas pricing that could give them the best of political worlds -- the chance to claim that they had voted for deregulation or to claim that they had voted against it. The plan would involve extending price controls for five years, perhaps longer. After five years, the controls would automatically expire, in theory. [New York Times] Stock prices advanced, but in slower trading, and the Dow Jones industrial average rose 8.32 points to 815.23, its biggest gain in almost a month. Analysts attributed the market's improvement to a stronger dollar, which rose against both the West German mark and the Swiss franc, Europe's strongest currencies. [New York Times] Support for the dollar in foreign exchange will not include a commitment by the United States to a policy of more active intervention abroad, officials in Washington said. The commitment has been withheld by Secretary of the Treasury Michael Blumenthal and Federal Reserve Chairman Arthur Burns despite increasing pressure from European finance ministers. At a meeting in Paris last weekend between the United States and its leading trading partners, the Europeans were told that the slide of the dollar in the international currency markets should be halted by the energy program nearing a compromise agreement in Congress and by Japanese concessions that are expected to reduce a large deficit in the United States trade with Japan. [New York Times] General Motors was ordered to pay $200 to each New York owner of a 1977-model Cadillac, Buick, Oldsmobile or Pontiac in which the engine was switched, and provide a three-year automotive warranty in settlement of a suit brought by New York state's Attorney General. The decision by Justice Thomas Hughes of the state Supreme Court in Manhattan was the first court ruling on the issue. Engine-switching suits have been brought by the Attorneys General of 23 other states. More than 12,000 New York residents would benefit from the decision, but General Motors "intends immediately to appeal," a spokesman said, on the ground that the company was denied the right to a trial on the merits of the case. [New York Times] The C.I.A. is in a turmoil over the decision of its new director, Adm. Stansfield Turner, to dismiss most of the top command of its covert operations, the cloak-and-dagger branch. At issue is not only the Admiral's tough approach, but also his style as head of the 16,000-member agency. Bulletin boards at headquarters bristle with anti-Turner statements, and veteran C.I.A. officials have been telling their troubles to newsmen. [New York Times] A meeting in Cairo will be held tomorrow between President Anwar Sadat and Secretary of State Cyrus Vance, who arrived there today to prepare for the Egyptian-Israeli peace conference that starts Wednesday. Mr. Vance said that the United States wanted ''to do everything" it could to support the peace overtures made by President Sadat. [New York Times] The United States role at the Cairo conference next week has been stressed by Foreign Minister Moshe Dayan of Israel in an attempt to dissipate a feeling in Jerusalem that the United States would participate only as an observer. Mr. Dayan, his associates said, is emphasizing the dependence of both Egypt and Israel on the United States for economic and military assistance. Some diplomats believe the United States presence in Cairo will provide a "safety net" if the conference collapses. [New York Times] An exchange of prisoners under a treaty between Mexico and the United States began when a chartered airliner picked up 11 Mexican nationals in Houston and 25 more in San Diego and delivered them to the authorities in Mexico City. Mexico released 61 Americans and flew them to San Diego, where many may be given their freedom soon. About 70 more Americans are scheduled to be flown home tomorrow. At least 230, and as many as 300 of the 572 Americans in Mexican jails, are expected to be released under the exchange. Most jailed were on drug charges. [New York Times]

Stock Market Report

Dow Jones Industrial Average: 815.23 (+8.32, +1.03%)
S&P Composite: 93.65 (+0.69, +0.74%)
Arms Index: 0.55

	Issues	Volume*
Advances	897	12.16
Declines	501	3.73
Unchanged	486	3.32
Total Volume		19.21

* 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*
December 8, 1977	806.91	92.96	20.40
December 7, 1977	807.43	92.78	21.05
December 6, 1977	806.91	92.83	23.77
December 5, 1977	821.03	94.27	19.16
December 2, 1977	823.98	94.67	21.16
December 1, 1977	825.71	94.69	24.22
November 30, 1977	829.70	94.83	22.67
November 29, 1977	827.27	94.55	22.95
November 28, 1977	839.57	96.04	21.57
November 25, 1977	844.42	96.69	17.91