News stories from Friday January 7, 1977

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

A federal tax rebate for all taxpayers this year is part of an economic stimulation package on which President-elect Carter and Democratic congressional leaders said they had reached general agreement. There are also proposals to increase spending to increase jobs, lower income tax payments for low and moderate income people and or businesses. There was some uncertainty about the program's total cost. Mr. Carter estimated "a little less" than $15 billion in this fiscal year, and a "little less" than that amount next year. Charles Schultze, chairman-designate of the Council of Economic Advisers, came up with higher estimates. [New York Times] Blanket amnesty for Vietnam war deserters and draft evaders has been ruled out by President Ford, officials at the White House said, but the President was said to be considering as a "gesture" some action that would provide clemency for some offenders. Mr. Ford does not intend to reopen his program for limited amnesty, which expired last year, his aides said. [New York Times] Quick action was asked of Congress by President Ford in a long message on the energy problem to assure "an adequate and secure supply of energy at reasonable prices." [New York Times] Stock prices continued to rally, but feebly, after a series of sharp declines in the opening days of 1977. The Dow Jones industrial average rose 3.24 points and closed at 984.13. Over the week it declined 21½ points. [New York Times] Last November, when questions were being raised about the strength of the economy, consumers increased their debts by $1.24 billion, the slowest growth in personal credit since February, the Federal Reserve Board reported. Christmas sales indicated that consumer credit probably rebounded in December, but figures will not be available until next month. [New York Times] Rupert Murdoch gained control of the New York Magazine Company after reaching an out-of-court settlement with Clay Felker, its president, who had opposed him. The settlement calls for Mr. Felker's resignation as president and editor of the magazine. Next week's issue of New York will be out on time despite a walkout by the staff in support of Mr. Felker. [New York Times] CBS Inc. purchased for $50 million Fawcett Publications, the publishers of Woman's Day Magazine and mass-market paperback books. Fawcett was bought from the sons of Wilford Fawcett, who started the company in Minneapolis in 1919 with a joke book called "Whiz Bang." [New York Times] New York City and state officials were advised to reject, at least for the time being, the latest demands laid down by the banks as a condition for their helping the city to balance the budget and pay off its short-term notes. The advice came from Felix Rohatyn, chairman of the Municipal Assistance Corporation. He told the Emergency Financial Control Board that "we are at an impasse right now." [New York Times] American and European banking officials will meet in Basel, Switzerland, on Sunday and Monday to discuss, according to American and British officials, a novel and possibly lasting solution to the long-standing problem of Britain's sterling balances. Agreement is expected but is not certain. Details have been kept secret, but the new proposals are known to be significantly different from the type of arrangement occasionally and unsuccessfully used in the past. [New York Times] Chou En-lai, who died a year ago, has become the real folk hero of China, triumphing over his longtime antagonists and tormentors, the "leftist" group around Chiang Ching, Mao Tse-tung's widow. Chou's ambitious program to modernize China by the end of this century has now become state policy, and his disciples have assumed power in Peking. It may even be that the selection of Hua Kuo-feng, the new Chairman of the Chinese Communist Party, was one of Chou's last moves. [New York Times] The Czechoslovak government detained at least five dissident intellectuals, and others were warned by the Communist Party newspaper in Prague that "those who lie on the rails to stop the train of history" must expect to get their legs cut off. A new manifesto in support of human rights signed by nearly 250 prominent Czechoslovaks apparently set off the arrests. [New York Times]

Stock Market Report

Dow Jones Industrial Average: 983.13 (+3.24, +0.33%)
S&P Composite: 105.01 (-0.01, -0.01%)
Arms Index: 0.73

	Issues	Volume*
Advances	843	12.12
Declines	635	6.62
Unchanged	456	2.98
Total Volume		21.72

* 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 6, 1977	979.89	105.02	23.92
January 5, 1977	978.06	104.76	25.01
January 4, 1977	987.87	105.70	22.74
January 3, 1977	999.75	107.00	21.28
December 31, 1976	1004.65	107.46	19.17
December 30, 1976	999.09	106.88	23.70
December 29, 1976	994.93	106.34	21.91
December 28, 1976	1000.08	106.77	25.79
December 27, 1976	996.09	106.06	20.13
December 23, 1976	985.62	104.84	24.56