News stories from Monday January 26, 1976

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

A reduction of nearly $500 million in military and economic aid to Israel in the next fiscal year is planned by the Ford administration. This has reportedly surprised Israeli officials on the eve of Prime Minister Yitzhak Rabin's visit to Washington. [New York Times] President Ford and his Council of Economic Advisers, citing the danger of renewed inflation, advocated in the President's economic message to Congress an economic policy that they contended would offer a safe and sure route to full employment. In doing so, they firmly rejected a national economic policy, advocated by many Democrats, that would be aimed at a rapid return to full employment. [New York Times] Over the strong dissent of its two most liberal Justices, the Supreme Court ruled that the Constitution does not require law enforcement officials to obtain arrest warrants before they make arrests in public places, even when there is adequate opportunity to obtain a warrant. [New York Times] In its report on how the Central Intelligence Agency spends its share of the annual $10 billion federal intelligence budget, the House Select Committee on Intelligence has found that the C.I.A. dispenses with competitive bidding in more than eight of every 10 contracts it awards to private industry. The report said that the agency entered into "hundreds of millions" of dollars worth of such contracts each year. [New York Times] The Ford administration and William Colby, Director of Central Intelligence, charged that leaks of the House Intelligence committee's report on the intelligence activities violated an agreement between the committee and the executive branch. Mr. Colby, who was questioned at a news conference about excerpts from the House report published in the New York Times, said, "The committee seems neither able to keep secrets nor its agreement," and he denied a number of allegations in the report. [New York Times] In Detroit, where busing for integration is not a popular cause, busing has come, but peacefully. It is the largest school district in the country operating under a court-ordered desegregation plan. More than 21,000 students are scheduled to be bused there for the purpose of integration. [New York Times] A report by the staff of the House Communications Subcommittee charged that the Federal Communications Commission has provided broadcasters an improper, unconstitutional and illegal umbrella against competition and recommended that a federal program be established to encourage the growth of cable television. The report, which was highly critical of the F.C.C.'s position on cable television, made a number of other recommendations that were intended to foster its growth. [New York Times] Its long-standing goal of expanding the Navy's diminished fleet to 600 ships by the mid-1980's has been abandoned by the Defense Department, mainly for budgetary reasons. How large a fleet the Navy should have is still, nevertheless, probably the most important military issue confronting the administration. [New York Times] The United States vetoed a Middle East resolution in the United Nations Security Council last night, objecting that it would have set new and one-sided conditions for negotiating an Arab-Israeli peace settlement. The defeated motion would have put the Council on record as favoring the establishment of an independent Palestinian state and calling for the complete withdrawal by Israel from all Arab territories occupied in the 1967 war. [New York Times]

Stock Market Report

Dow Jones Industrial Average: 961.51 (+7.56, +0.79%)
S&P Composite: 99.68 (+0.47, +0.47%)
Arms Index: 1.09

	Issues	Volume*
Advances	1,022	18.97
Declines	547	11.05
Unchanged	352	4.45
Total Volume		34.47

* 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 23, 1976	953.95	99.21	33.64
January 22, 1976	943.48	98.04	27.42
January 21, 1976	946.24	98.24	34.47
January 20, 1976	949.86	98.86	36.69
January 19, 1976	943.72	98.32	29.45
January 16, 1976	929.63	97.00	25.94
January 15, 1976	924.51	96.61	38.45
January 14, 1976	929.63	97.13	30.34
January 13, 1976	912.94	95.57	34.53
January 12, 1976	922.39	96.33	30.44