News stories from Monday June 2, 1975

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

President Ford and President Anwar Sadat of Egypt ended two days of talks in Salzburg with statements by both sides that their meeting had been an important step forward to peace in the Middle East. American and Egyptian officials also said that relations between the two countries, which had been poor for more than 20 years, were enhanced and put on a basis of long-term friendship. [New York Times] Vice President Rockefeller said that his commission's five-month investigation of the Central Intelligence Agency had found incidents where the C.I.A. violated the law, but no widespread pattern of illegal activity. In a briefing for reporters as he prepared to present a 350-page report to President Ford, Mr. Rockefeller said "there are things that have been done which are in contradiction to the statutes, but in comparison to the total effort they are not major." [New York Times] The Supreme Court, in a 5-4 decision, moved to subject a previously permissible kind of labor union organizing activity to the scrutiny of the antitrust laws for the first time. The Court held that a construction union had opened itself to a possible triple-damage lawsuit by compelling a contractor that it was not attempting to organize to boycott nonunion subcontractors that the union sought to organize. [New York Times] The invalidation of state laws and private agreements that prohibit druggists from advertising the price of prescription drugs was started by the Federal Trade Commission. The agency's economists estimate this might save consumers, who often pay widely varying prices for the same drug, more than $300 million a year. Lewis Engman, the commission's chairman, said the lack of price information was largely the result of various state and local laws and codes of ethics among pharmaceutical associations that do not permit price to be included in the advertising of prescription medicines. It will take at least a year for the commission's rules to become effective. [New York Times] Israel announced today that she will thin out her forces along the Suez Canal front as a unilateral gesture in response to the canal's reopening this week by Egypt. Israel will reduce the number of troops and tanks along the Suez frontline by half and pull back her artillery and missiles. The effect will be to widen the so-called limited-force zone established under the 1974 Israeli-Egyptian disengagement agreement by roughly half and significantly reduce Israeli forces contained within. The reduction of her forces seemed intended to improve Israel's current reputation as the intransigent party in the Middle East stalemate and open the way to an interim accord with Egypt. [New York Times] Belgium will join three other Western European countries in the purchase of American-made F-16 fighter aircraft worth more than $2 billion, a high-ranking United States official said. The four countries, forming a consortium, are making arrangements to purchase about 350 of the F-16's in one of the largest arms sales in this century. Belgium's participation was worked out in Washington between Defense Secretary James Schlesinger, and the Defense Minister of Belgium. [New York Times]

Stock Market Report

Dow Jones Industrial Average: 846.61 (+14.32, +1.72%)
S&P Composite: 92.58 (+1.43, +1.57%)
Arms Index: 0.90

	Issues	Volume*
Advances	1,136	20.07
Declines	362	5.78
Unchanged	346	2.39
Total Volume		28.24

* 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*
May 30, 1975	832.29	91.15	22.67
May 29, 1975	815.00	89.68	18.57
May 28, 1975	817.04	89.71	21.85
May 27, 1975	826.11	90.34	17.05
May 23, 1975	831.90	90.58	17.87
May 22, 1975	818.91	89.39	17.61
May 21, 1975	818.68	89.06	17.64
May 20, 1975	830.49	90.07	18.31
May 19, 1975	837.69	90.53	17.87
May 16, 1975	837.61	90.43	16.63