News stories from Tuesday July 2, 1974

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

Agreement on a limitation of underground nuclear tests has been reached, but the summit talks with President Nixon have reached no breakthrough on controlling offensive weapons systems, Leonid Brezhnev indicated at their final Kremlin banquet. While Mr. Nixon's toast stressed their personal relationship, Mr. Brezhnev's emphasized hopes for the good relations of the Soviet and American peoples. [New York Times] President Nixon addressed the Soviet television audience from the Kremlin, saying that the United States and Soviet Union were together weaving a fabric of cooperation to give both nations a positive stake in peace. He said their accomplishments should go beyond an agreed balance of terror because nothing permanent could be built on fear alone. [New York Times] The police in Dayton, Ohio, are investigating a possible link between the local man charged with killing Mrs. Martin Luther King Sr. and the mysterious shooting deaths of two ministers in Dayton in the last six months. A former roommate of Marcus Wayne Chenault, held in the shooting, has told of "The Troop," dedicated to killing civil rights and religious leaders it believes have deceived blacks. [New York Times] The House Judiciary Committee, in closed session, heard testimony on President Nixon's staff practices from Alexander Butterfield, a first-term aide. He reportedly said that Mr. Nixon paid close attention to minute details as well as policy matters, but Republicans present stressed later that it was wrong to draw any inference that the President must have known of Watergate cover-up efforts. [New York Times] A minority staff report to the Senate Watergate Committee said that the Central Intelligence Agency knew more about the burglars' activities than it has publicly acknowledged. The report indicated C.I.A. officials failed to report fully and tried in one case to withhold information on the Watergate break-in. The current C.I.A. director denied any inference from the report that the agency's men had knowingly been involved in the break-ins or cover-ups. [New York Times] A federal grand jury in San Diego has indicted C. Arnholt Smith, a California financier and long-time friend and backer of President Nixon, for conspiracy to misuse $170 million in funds from a defunct bank he once controlled. [New York Times] A federal indictment of Skitch Henderson for tax evasion said he had used backdated documents in claiming a $350,000 tax deduction for music scores donated to the University of Wisconsin. It said the date was changed to precede the July 25, 1969, cutoff for deductions based on gifts of personal papers by public figures. [New York Times] The Israeli government announced sweeping immediate economic measures to curtail inflation and offset postwar deficits. The program includes cutbacks in spending and new income and property taxes, plus a freeze an half of the 20 percent cost of living increase wage earners were to receive this month. It appears aimed at the spending power of the increasingly prosperous upper middle class. [New York Times] The armed forces movement that has taken power in Addis Ababa is gradually isolating Emperor Haile Selassie by detaining or removing officials and influential persons close to him. Among the latest arrested, according to reliable sources, is one of his grandsons, who formerly commanded the navy. Detainees are being held on the grounds of the imperial golf club. [New York Times] The funeral cortege of President Juan Peron of Argentina stirred widespread grief in Buenos Aires. The once-excommunicated leader was eulogized by Antonio Cardinal Caggiano as a Christian, humanist and enemy of violence. [New York Times] Pentagon officials predict that military aid to South Vietnam in the new fiscal year will be limited to ammunition, petroleum and spare parts because of congressional budget cuts. The administration had asked a $1.6 billion ceiling, but plans now assume a $900,000 to $1 billion authorization. The curtailment is under discussion with the embassy in Saigon. [New York Times]

Stock Market Report

Dow Jones Industrial Average: 790.68 (-15.56, -1.93%)
S&P Composite: 84.30 (-1.72, -2.00%)
Arms Index: 2.10

	Issues	Volume*
Advances	298	1.34
Declines	1,138	10.76
Unchanged	355	1.36
Total Volume		13.46

* 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*
July 1, 1974	806.24	86.02	10.27
June 28, 1974	802.41	86.00	12.01
June 27, 1974	803.66	86.31	12.65
June 26, 1974	816.96	87.61	11.41
June 25, 1974	828.85	88.98	11.92
June 24, 1974	816.33	87.69	9.95
June 21, 1974	815.39	87.46	11.83
June 20, 1974	820.79	88.21	11.99
June 19, 1974	826.11	88.84	10.55
June 18, 1974	830.26	89.45	10.11