News stories from Friday January 12, 1973

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

Confusion exists in Washington over Phase III economic controls. A spokesman for the Cost of Living Council said that wage and price controls have not ended. Mandatory controls are ending and the new controls are voluntary, but the guidelines are still there, and the council has the authority to roll back price and wage increases. Phase III can work if the council uses its power, but that is doubtful according to one economist. With price controls off, fuel companies may start refining more oil. [CBS] The Federal Reserve Board increased the interest rate it charges member banks from 4.5% to 5.0%. [CBS] The Watergate case took another surprising turn. There was no testimony at the trial today, only a conference at Judge Sirica's bench and behind closed doors in his chambers. The "Miami 4" may follow the lead of E. Howard Hunt and plead guilty. Newsday reports that a Miami group has offered the four defendants a large sum of money to plead guilty. Attorney Henry Rothblatt opposes a guilty plea and stated that he will continue as defense attorney only if his clients plead not guilty. [CBS] New Orleans sniper Mark Essex was buried in his hometown of Emporia, Kansas. In New Orleans, the landlord of Essex's apartment found that it had been painted from floor to ceiling with anti-white slogans. [CBS] Deputy Secretary of Defense-designate William Clements stirred controversy on Capitol Hill. It began when Clements hesitantly told Senator Harold Hughes that he would not rule out the use of nuclear weapons in Vietnam. The White House, State Department and Pentagon all quickly issued statements saying that it is not U.S. policy to use nuclear weapons in Vietnam. Clements then issued a statement agreeing with the other officials. Senator Hughes and others plan to filibuster against all Nixon appointees as a protest against the Vietnam war. [CBS] In Paris, North Vietnam immediately condemned Clements' statement. Meanwhile, Henry Kissinger and Le Duc Tho held a six-hour meeting concerning the peace settlement. The demilitarized zone (DMZ) is now a major problem. The DMZ was first created during the 1954 Geneva talks, but it was not intended as a permanent boundary between North and South Vietnam. In the October agreement, the implication was clear that Vietnam is to be one country, not two. But President Thieu strongly objected and President Nixon reconsidered, telling Kissinger to revise the agreement so that the DMZ signifies the boundary between North and South Vietnam. North Vietnam rejected that revision. The talks still seem to be deadlocked. [CBS] A team of Chinese acrobats visited Congress and White House and met with President and Mrs. Nixon. Afterwards, the President discussed the Washington Redskins and the Super Bowl with reporters. [CBS] The National Center for Disease Control reports that Boston, New York City, Baltimore, Chicago, Washington and San Francisco have been hit by major outbreaks of influenza. A flu epidemic has claimed 882 lives in England, and 250,000 people caught the flu there just in the past week. Since the epidemic began in early December, nearly 2,000 have died. A doctor at the World Influenza Center said that vaccines are inadequate against influenza, and different treatments are being researched. [CBS]

Stock Market Report

Dow Jones Industrial Average: 1039.36 (-12.34, -1.17%)
S&P Composite: 119.30 (-0.94, -0.78%)
Arms Index: 1.33

	Issues	Volume*
Advances	416	4.60
Declines	1,083	15.90
Unchanged	303	1.73
Total Volume		22.23

* 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 11, 1973	1051.70	120.24	25.05
January 10, 1973	1046.06	119.43	20.88
January 9, 1973	1047.11	119.73	16.83
January 8, 1973	1047.86	119.85	16.84
January 5, 1973	1047.49	119.87	19.33
January 4, 1973	1039.81	119.40	20.23
January 3, 1973	1043.80	119.57	20.62
January 2, 1973	1031.68	119.10	17.09
December 29, 1972	1020.02	118.05	27.55
December 27, 1972	1007.68	116.93	19.10