News stories from Friday October 1, 1976

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

A restriction on the use of Medicaid funds for abortions was blocked by federal judges only hours after the bill containing the restrictions had become law. The judges, in New York City and in Washington, issued temporary restraining orders and the judge in New York said he would rule within 20 days on the granting of a preliminary injunction barring implementation of the restriction until a court decision on its constitutionality. [New York Times] Agriculture Secretary Earl Butz was severely reprimanded by President Ford for making "highly offensive" racial remarks, Ron Nessen, the White House spokesman said. Mr. Butz issued a public apology for the remarks. The incident stemmed from a published report of a joke Mr. Butz had made about black voters while on an airliner. [New York Times] Jimmy Carter moved to bring his campaign back to its original roots in a series of speeches. The Democratic candidate mixed an attack on Presidents Ford and Nixon -- accusing them of inflicting great harm on America -- with his affirmation of the country's ability to survive if he is elected. The speeches were said to be the result of a strategy session in Plains, Ga., in which the candidate and his aides decided what the campaign needed was Jimmy Carter being himself. [New York Times] The F.B.I. Investigation into alleged campaign financing irregularities involving President Ford has been completed and a report is being prepared that shows no substantial evidence that would support criminal charges, according to government sources. The report must be reviewed by the Watergate special prosecutor. [New York Times] A major policy shift in the strategic stockpile program was announced by the federal government. The new policy is aimed at assuring a three-year, instead of the previous one-year, supply of critical materials in event of a major war. [New York Times] Stock prices suffered their largest one-week decline of 1976. The Dow Jones Industrial average dropped 10.30 points to 979.89, to register a decline of nearly 30 points for the week. [New York Times] The largest merger proposed in the nation's history will not be challenged by the Justice Department. After weighing whether such a merger might have an anti-competitive impact on the nuclear-steam supply market, the department announced it would not contest the General Electric Company's projected $2 billion acquisition of Utah International Inc. [New York Times] Terminally ill persons received the right to authorize the withdrawal of life-sustaining procedures under a California law signed by Gov. Jerry Brown. The controversial law, which was supported by the state's medical association and many other civic and religious groups, has strict guidelines to insure that the patient is both competent to make the authorization and is indeed terminally ill. [New York Times] Following a Palestinian refusal to negotiate, Syrian and Lebanese Christian forces opened a new attack on the Palestinian forces near Beirut. At stake in the battle is a ridge that would complete the encirclement of the Moslem section of Beirut. The Palestinians reportedly refused a Syrian demand that they withdraw and return to refugee camps. [New York Times] An appeal from Moscow for the withdrawal of Syrian troops from Lebanon has been rejected by President Hafez al-Assad. A close aide to the president said the appeal had come directly from Leonid Brezhnev, the Communist Party leader. He said there was nothing to confirm a report that the Russians had reduced or had threatened to reduce aid to Syria. [New York Times] Most West German campaigning ended with a burst of bitter words and rosy statistics broadcast in a nearly four-hour TV debate among leaders of the four main parties The election on Sunday is expected to he a tight battle between Chancellor Helmut Schmidt, a Social Democrat, and Helmut Kohl, the Christian Democratic leader. [New York Times]

Stock Market Report

Dow Jones Industrial Average: 979.89 (-10.30, -1.04%)
S&P Composite: 104.17 (-1.07, -1.02%)
Arms Index: 2.32

	Issues	Volume*
Advances	453	2.89
Declines	996	14.76
Unchanged	428	2.97
Total Volume		20.62

* 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*
September 30, 1976	990.19	105.24	14.70
September 29, 1976	991.19	105.37	18.09
September 28, 1976	994.93	105.92	20.44
September 27, 1976	1013.13	107.26	17.43
September 24, 1976	1009.31	106.80	17.40
September 23, 1976	1010.80	106.92	24.21
September 22, 1976	1014.05	107.46	32.97
September 21, 1976	1014.79	107.83	30.30
September 20, 1976	994.51	106.32	21.73
September 17, 1976	995.10	106.27	28.27