News stories from Monday January 24, 1977
Summaries of the stories the major media outlets considered to be of particular importance on this date:
- President Carter rescinded former President Ford's order to end gasoline price controls, while the Federal Energy Administration took steps toward increasing fuel supplies. The F.E.A. issued emergency regulations intended to improve supplies of propane and natural gas, particularly in the Southeast and the Ohio River Valley, and to provide more kerosene for heating in the upper Midwest. [New York Times]
- The white government in Rhodesia rejected the latest British plan for transition to black majority rule. Prime Minister Ian Smith stated that he intends to go with the plan set up by Henry Kissinger, which black nationalists rejected.
Smith announced his rejection of the British plan in a televised address, and cited his objections. After a meeting with Smith, British negotiator Ivor Richard held a press conference but couldn't say where things will go from here. A new independent effort to bring about black majority rule is not likely to get international support.
[CBS] - Simplicity, frugality and candid discourse -- the recurrent themes of President Carter's campaign -- were repeated again at his first cabinet meeting and will, it appears, set the tone for his administration. He announced that chauffeur service for his own staff, a traditional privilege of presidential aides, would be canceled, and he urged the cabinet members to make similar economies in their departments. [New York Times]
- Sharply higher earnings for the final quarter of 1976, which was much colder than the same period in 1975, are being reported by fuel suppliers and utilities, according to Wall Street analysts. One utility, the General Public Utilities Corporation, reported gains of 67 percent in last year's final quarter. The Suburban Propane Gas Corporation's earnings rose 25 percent. Both companies acknowledged that a good part of the increase resulted from the unusually cold weather. [New York Times]
- Another indicator that the economy may be improving was the Commerce Department report that new orders for durable goods placed with manufacturers in December rose 6.6 percent, one of the best increases that category made in 1976. The figure, however, was preliminary and could be revised by as much as 2 percent. [New York Times]
- The Senate confirmed Joseph Califano as Health, Education and Welfare Secretary. The lone vote against confirmation was Oregon Senator Robert Packwood, who expressed concern about Califano's opposition to abortion. [CBS]
- The American Motors Corporation reported that It had halted its recent heavy losses with earnings of $1.2 million, or 4 cents a share, in the December quarter of 1976. This was the first time that A.M.C. had reported a profit in three quarters, but some industry analysts doubted that the profits could be sustained throughout the company's fiscal year. [New York Times]
- Stock prices made a small gain in slower trading following a Commerce Department report that durable goods orders in December rose substantially by 6.6 percent. The Dow Jones industrial average closed up 1.17 points at 963.60. Rising stocks outnumbered losers by about 4 to 3. Credit markets, worried about a recent drain on the nation's money supply and the strength of the general economy, declined fairly sharply. Most long-term bond prices dropped a half-point. [New York Times]
- Questions about the lack of federal controls over bribes paid by American corporations overseas and the need for international cooperation to end them have again been raised in a dispute between the General Telephone and Electronics Corporation and the Hughes Aircraft Company over allegations of bribery of Indonesian officials. [New York Times]
- A group of North American, German and British banks made a loan of $1.5 billion to the British government to help bolster its reserves of foreign currency. Chancellor of the Exchequer Denis Healey told the House of Commons that the terms of the loan were "the best that have been achieved in the market for a comparable operation" since the government borrowed $2.5 billion from an international banking group in 1974. [New York Times]
- President Carter is urging an instant and complete halt to all testing of nuclear weapons as a step toward curbing their spread and ultimately banning them, he disclosed in his first White House interview. He said he had received an encouraging message from the Soviet Union. He was hopeful also of fairly rapid ratification of a new treaty with the Soviet Union limiting strategic arms. [New York Times]
- Vice President Mondale told the 15-member council of the North Atlantic Treaty Organization in Brussels that in view of the increased Soviet military strength in Europe, the Carter administration was prepared to increase defense outlays within NATO. He said that President Carter's campaign promise to cut the defense budget would not affect NATO-related expenditures. [New York Times]
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Stock Market Report
Dow Jones Industrial Average: 963.60 (+1.17, +0.12%)
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 21, 1977 | 962.43 | 103.32 | 23.93 |
| January 20, 1977 | 959.03 | 102.97 | 26.52 |
| January 19, 1977 | 968.67 | 103.85 | 27.12 |
| January 18, 1977 | 962.43 | 103.32 | 24.38 |
| January 17, 1977 | 967.25 | 103.73 | 21.06 |
| January 14, 1977 | 972.16 | 104.01 | 24.48 |
| January 13, 1977 | 976.15 | 104.20 | 24.78 |
| January 12, 1977 | 968.25 | 103.40 | 22.67 |
| January 11, 1977 | 976.65 | 104.12 | 24.10 |
| January 10, 1977 | 986.87 | 105.20 | 20.86 |