News stories from Friday January 3, 1975
Summaries of the stories the major media outlets considered to be of particular importance on this date:
- President Ford signed a wide-ranging trade reform act, but left uncertain the fate of the controversial part that would provide trade benefits to Moscow in return for assurances of freer Soviet emigration policies. He told the 200 guests at the signing ceremony in the White House that because of recent Soviet denials that any such "assurances" had been given to the United States, it was questionable whether the trade-benefit clause would be carried out. [New York Times]
- Unemployment in the United States in December was at its highest rate in more than 13 years. The Labor Department reported that 7.1 percent of the labor force, a total of 6.5 million persons, was out of work last month. The 7.1 percent rate was last reported in May, 1961, and was last exceeded in August, 1958. Ron Nessen, the White House press secretary, said President Ford had heard estimates that the jobless rate could reach 8 percent over the next few months. [New York Times]
- The Federal Reserve Board cut its discount rate -- the rate at which banks borrow temporarily from the Federal Reserve when they are pinched for funds -- to 7¼ percent from 7¾ percent. This was an indication that the Federal Reserve was adopting an easier monetary policy as an anti-recession move. The board said "the action was taken in view of the weakening in economic activity." [New York Times]
- In its gloomiest report on the natural gas supply to date, the staff of the Federal Power Commission said that the outlook for gas supplies has worsened unexpectedly and recommended mandatory conservation measures affecting all gas consumers, including homeowners. Natural gas production from the lower 48 states "has reached its peak and will be declining for the indefinite future," the report said. [New York Times]
- Pentagon officials said that the administration had approved a $95 billion defense budget for the coming fiscal year, an $11 billion increase over the current defense budget. The argument expected to be offered by the administration when the new budget is presented to Congress this month is that the increase is necessary to maintain the country's basic defense position in the face of inflation. Whether this view will be accepted by the new Democratic majorities in Congress, however, is a subject of considerable concern in the Pentagon. [New York Times]
- Officials in six Arab countries say that their new oil wealth will create a framework for stability in the Middle East, but their vast income is now being used to put international pressure on Israel. Western and Japanese financial institutions and industrial corporations are reportedly shying away from dealings with Israel to avoid the danger of being barred from the enormous market the Arabs are opening to foreigners. [New York Times]
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Stock Market Report
Dow Jones Industrial Average: 634.54 (+2.50, +0.40%)
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 2, 1975 | 632.04 | 70.23 | 14.80 |
| December 31, 1974 | 616.24 | 68.56 | 20.97 |
| December 30, 1974 | 603.25 | 67.16 | 18.52 |
| December 27, 1974 | 602.16 | 67.14 | 13.06 |
| December 26, 1974 | 604.74 | 67.44 | 11.81 |
| December 24, 1974 | 598.40 | 66.88 | 9.54 |
| December 23, 1974 | 589.64 | 65.96 | 18.04 |
| December 20, 1974 | 598.48 | 66.91 | 15.84 |
| December 19, 1974 | 604.43 | 67.75 | 15.90 |
| December 18, 1974 | 603.49 | 67.90 | 18.05 |