News stories from Wednesday June 2, 1976

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

President Ford told members of his cabinet to press for action that the White House said would severely limit court-ordered busing to achieve racial desegregation of schools. He is studying draft legislation that would limit court action to specific areas within a community or school system where such segregation existed. His press secretary said that the draft would prevent court-ordered busing in cases where non-governmental factors such as housing patterns caused school segregation. In California, former Gov. Ronald Reagan called school busing for desegregation a "pernicious" instrument of the federal courts and said that if elected President, he would order federal departments to "get off the back" of local school boards. [New York Times] There was at least one victory in Tuesday's three-state Republican and Democratic presidential primaries for every major candidate except Representative Morris Udall. Evidently disheartened by his loss in South Dakota to Jimmy Carter, he said that if he did not win in Ohio next week "it may well be over." The most remarkable success was scored by Gov. Jerry Brown of California in Rhode Island, where final tabulations gave him nine convention delegates to seven for Mr. Carter and six for Senator Frank Church. President Ford won among Republicans in Rhode Island, while losing in Montana and South Dakota to Ronald Reagan but gained 28 delegates to 11 for his challenger. [New York Times] Majority Leader Tip O'Neill asked Representative Wayne Hays of Ohio to yield his committee chairmanships pending federal investigations of his activities. Mr. Hays, who has admitted an affair with a staff employee, said he would make a public statement today. [New York Times] With Mayor Beame's support, the Democratic leaders of the Bronx, Brooklyn and Queens are preparing to support city council president Paul O'Dwyer for the United States Senate nomination. The move has contributed to "second thoughts" by Daniel Patrick Moynihan on his own candidacy. [New York Times] Syrian troops stayed in the positions short of Beirut they took up Tuesday as Palestinian and Lebanese Moslems reiterated that their troops would resist any advance in that direction. For the first time in Lebanon's 14-month civil war, a meeting of two leaders of the opposing factions -- Kamal Jumblat of the leftist-Moslem alliance and Pierre Gemayel, son of the leader of the right-wing Christian military and political organization -- was publicly announced. It was arranged by a leader of Al Fatah, the main guerrilla group of the Palestine Liberation Organization. [New York Times] Ethiopia's political and social upheaval since radical soldiers deposed Emperor Haile Selassie in 1974 has left the country sliding into economic disarray, armed repression and a mood of disillusion and fear. The government's current move in sending art army of peasants against the most powerful rebel group in the northern province of Eritrea is regarded by many as risky. [New York Times]

Stock Market Report

Dow Jones Industrial Average: 975.93 (+2.80, +0.29%)
S&P Composite: 100.22 (+0.37, +0.37%)
Arms Index: 0.86

	Issues	Volume*
Advances	757	8.12
Declines	640	5.90
Unchanged	437	2.10
Total Volume		16.12

* 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*
June 1, 1976	973.13	99.85	13.88
May 28, 1976	975.23	100.18	16.86
May 27, 1976	965.57	99.38	15.31
May 26, 1976	968.63	99.34	16.75
May 25, 1976	971.69	99.49	18.77
May 24, 1976	971.53	99.44	16.56
May 21, 1976	990.75	101.26	18.73
May 20, 1976	997.27	102.00	22.56
May 19, 1976	988.90	101.18	18.45
May 18, 1976	989.45	101.26	17.41