News stories from Thursday January 6, 1977

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

A permanent tax reduction as well as a temporary one-year tax cut is being considered by President-elect Carter as final details of his economic stimulation program became known. He will also establish a government works program, but he stressed that such jobs should be "useful." One of Mr. Carter's principal aides expressed hope that the Carter program would not cost more than $15 billion to keep public opinion on Mr. Carter's side and to avoid worsening the budget deficit. [New York Times] Gale McGee, a former Democratic Senator from Wyoming and a strong supporter of a new treaty that would fix a date for ending United States control over the Panama Canal, will be the Carter administration's representative in the Organization of American States, according to high Latin American diplomats. While in Congress, Mr. McGee was chairman of the Western Hemisphere Affairs subcommittee of the Senate Foreign Relations Committee. His stand on the Panama Canal may have contributed to his failure to win re-election to the Senate last November. [New York Times] Solar heating units will warm the reviewing stand from which President-elect Carter will watch his inaugural parade in Washington on Jan. 20. Four units are being installed under the direction of a Georgia professor of aerospace engineering. They are also meant to emphasize Mr. Carter's interest in conservation. As the inaugural plans progress, it has become apparent that there would have to be limitations on the "people's" celebration that Mr. Carter wanted. [New York Times] A return of consumer confidence was said to be reflected in strong December sales figures reported by major chain stores. Sears, J.C. Penney and Montgomery Ward had record sales in the month, and all the major chains topped year-earlier levels. [New York Times] A new restraint on imported shoes will be recommended to President Ford by the United States International Trade Commission. Four of the commission's six members voted for a "tariff rate quota." [New York Times] Stock prices made their first gain of the new year aided by renewed strength in some of the recently depressed blue chip and glamour issues. The Dow Jones industrial average, which had advanced throughout the session, was ahead by 1.83 points and closed at 979.89. Rising stocks outnumbered declining ones by 2 to 1. Credit markets dropped sharply -- the third decline in the last four days -- when Sears, Roebuck & Co. announced plans to sell $300 million of debentures. Almost $300 million of other new bond issues were also reported. Corporate and government bonds fell as much as one full point, perhaps a little more, and tax-exempt issues also declined. [New York Times] The $30 million that Rupert Murdoch used to buy the New York Post, he said in an interview, came from a combination of cash and loans in London, New York, and his native Australia. "Basically, one-third of the money came from each place," he said. [New York Times] New York Magazine's staff walked out in a show of support for Clay Felker, the magazine's editor, and his attempts to prevent a takeover by Rupert Murdoch, the Australian publisher. The Jan. 17 issue of the magazine may not come out. This could cost the company more than $250,000, magazine officials said. Meanwhile, Mr. Felker, at a federal judge's order, met with Mr. Murdoch to discuss their differences. [New York Times] Minimum prison terms of four and three years, respectively, were given to Mel Lynch and Dominic Byrne, who were convicted last month of extorting $2.3 million from Edgar Bronfman. They were acquitted of kidnapping Mr. Bronfman's son Samuel. Mr. Lynch was given a maximum term of 12 years and Mr. Byrne was given a maximum of nine years. [New York Times] Syria executed by hanging two Syrians and a Palestinian who were convicted of a series of bomb attacks in complicity with Iraq. This was the second time that Syria had held public executions in four months. [New York Times] Uganda has begun preliminary work in Manhattan on a 15-story headquarters for its United Nations delegation that would be three floors higher than the building of the United States Mission, its next-door neighbor. Excavation work for Uganda's building has been under way for nearly two weeks on 45th Street off First Avenue. [New York Times]

Stock Market Report

Dow Jones Industrial Average: 979.89 (+1.83, +0.19%)
S&P Composite: 105.02 (+0.26, +0.25%)
Arms Index: 0.88

	Issues	Volume*
Advances	949	13.49
Declines	548	6.88
Unchanged	461	3.55
Total Volume		23.92

* 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 5, 1977	978.06	104.76	25.01
January 4, 1977	987.87	105.70	22.74
January 3, 1977	999.75	107.00	21.28
December 31, 1976	1004.65	107.46	19.17
December 30, 1976	999.09	106.88	23.70
December 29, 1976	994.93	106.34	21.91
December 28, 1976	1000.08	106.77	25.79
December 27, 1976	996.09	106.06	20.13
December 23, 1976	985.62	104.84	24.56
December 22, 1976	984.54	104.71	26.97