News stories from Monday October 20, 1975

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

The nation's economic recovery in the July-September quarter was even speedier than experts had expected. The Commerce Department reported that the total output of goods and services rose at an annual rate of 11.2 percent. James Pate, Assistant Secretary of Commerce for Economic Affairs, said the figures showed that the two-year recession was "definitely" over. [New York Times] The Supreme Court ruled that states may allow teachers to spank misbehaving pupils, even over the objections of parents. However, the Court said that teachers must use lesser punishment when appropriate and also give children a procedural safeguard -- such as advance warning of what misbehavior warranted a spanking. The decision does not invalidate state laws that bar corporal punishment, since the Court sets only minimum standards and states may give schoolchildren additional rights. [New York Times] The Ford administration proposed a food-stamp revision bill that it said would save taxpayers $1.2 billion a year by dropping recipients or cutting benefits for nearly half of the 18.8 million people now getting the coupons. The program would eliminate 3.4 million Americans from the rolls by limiting participation to those whose net income is below $5,050 for a family of four. It would also revise eligibility criteria, reducing benefits for 5.3 million people. [New York Times] Defense Secretary James Schlesinger charged that a House committee had made "deep, savage and arbitrary cuts" in defense appropriations that, if not reversed by the Senate, would have "a severe effect" on the nation's defenses. [New York Times] President Ford, a high administration official said, will reluctantly approve legislation to ease New York City's fiscal crunch provided the measure contains the stringent restrictions that Congress is expected to require. Congressional leaders expressed uncertainty on the prospects for such legislation, but the House majority leader predicted eventual passage. [New York Times] The White House announced a five-year accord with the Soviet Union, effective a year from now, under which the Russians would buy six to eight million tons of American grain a year. Also, President Ford lifted a two-month embargo on further grain sales to the Russians this year. The White House further announced a letter of intent, signed in Moscow, to buy up to 200,000 barrels of Russian oil a day. [New York Times] The United States has reportedly assured Israel that it has no present plans to sell arms to Egypt for at least a year. The assurance was conveyed, officials said, because Egypt's President Anwar Sadat is expected to take a "shopping list" of American arms to Washington next week. [New York Times] With repression and mass arrests, the military regime that has ruled Ethiopia for 13 months has pushed the politically conscious minority into fearful opposition or into prisons. Land reform, the regime's main achievement, is said to have been carried out on 10 percent of arable soil. [New York Times] Prime Minister Harold Wilson of Britain, under the pressure of financial and ideological disputes, ordered an inquiry into the National Health Service. Junior staff doctors in British hospitals are protesting a plan that, they say, is cutting overtime payments to doctors who work long hours. [New York Times]

Stock Market Report

Dow Jones Industrial Average: 842.25 (+10.07, +1.21%)
S&P Composite: 89.82 (+0.96, +1.08%)
Arms Index: 0.58

	Issues	Volume*
Advances	850	8.35
Declines	524	2.99
Unchanged	438	1.91
Total Volume		13.25

* 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*
October 17, 1975	832.18	88.86	15.65
October 16, 1975	837.85	89.37	18.91
October 15, 1975	837.22	89.23	14.44
October 14, 1975	835.25	89.28	19.96
October 13, 1975	837.77	89.46	12.02
October 10, 1975	823.91	88.21	14.88
October 9, 1975	824.54	88.37	17.77
October 8, 1975	823.91	87.94	17.80
October 7, 1975	816.51	86.77	13.53
October 6, 1975	819.55	86.88	15.47