News stories from Tuesday February 8, 1977

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

There were broad hints from President Carter at his news conference that he would keep his campaign promise to end federal regulation of some natural gas prices but that he would take steps to keep gas producers from making "unwarranted profits." Well-placed Washington sources said a tax could be imposed on producers' windfall profits or on gas production. The effect either way of deregulation and a tax would be higher prices to consumers and higher federal tax revenues. [New York Times] A possible clash on tax policy between the Carter administration and Al Ullman, chairman of the House Ways and Means Committee, was signaled when Treasury Secretary Michael Blumenthal called committee proposals to alter President Carter's employment tax credit plan "arbitrary and capricious." His statement preceded Mr. Carter's defense of his tax package at his news conference warning that he would veto "drastic changes" in the plan. [New York Times] Hustler Magazine was found guilty in a Cincinnati court of engaging in organized crime and pandering obscenity; its publisher, Larry Flynt, was found guilty on the same charges and sentenced to 25 years in prison on the first charge and six months on the second. He was also fined $10,000 and $1,000 respectively, the same fines imposed on the magazine. [New York Times] Part of the influenza vaccination ban was lifted by the Department of Health, Education and Welfare, but the moratorium remains in effect for shots against swine flu for the general population. Bivalent vaccine against swine flu and the A-Victoria type was recommended for the elderly and others with chronic diseases that could make flu dangerous. [New York Times] President Carter gave six New Jersey counties major disaster-area status because of ice conditions. [New York Times] Arthur Burns predicted that as private credit demands strengthen, it might become increasingly difficult to finance the large federal deficit expected in this calendar year at current interest rates. But the Federal Reserve chairman added that any easing in the outlook for inflation would tend to moderate the pressures for higher interest rates. [New York Times] Stock prices declined moderately in heavier trading with Dow Jones industrials down 4.07 points to close at 942.24. Bond prices moved higher late in the session, with some dealers in government issues reporting sizable gains. [New York Times] President Carter offered to seek a quick agreement with the Soviet Union on a ceiling for strategic arms by postponing consideration of whether a Soviet bomber and the American cruise missile should be included. At his first presidential news conference he also suggested a mutual halt in developing missiles that can be launched from movable sites. These and other unexpectedly sweeping proposals indicated that Mr. Carter's views on arms limitation were not far from those of his nominee for arms negotiator, Paul Warnke, whom he strongly backed. [New York Times] The Senate Foreign Relations Committee heard Mr. Warnke pledge that if confirmed he would seek to limit and reduce arms already in existence to make the United States more secure. Most members seemed to welcome his nomination as director of the Arms Control and Disarmament Agency. [New York Times] The Spanish government announced a major reform of the law on political association, opening the way to the legalization of most parties, including possibly the Communists. The action gives the government time to deal with the Communist issue, a thorny and emotional one for Spain. [New York Times] Milovan Djilas, who once ranked third in the Yugoslav Communist regime, urged West European Communist parties to try to persuade his government to respect human rights. The dissident former prisoner said in Belgrade that his country was "not behind the Soviets" proportionately in the number of political prisoners held that it held. [New York Times]

Stock Market Report

Dow Jones Industrial Average: 942.24 (-4.07, -0.43%)
S&P Composite: 101.60 (-0.29, -0.28%)
Arms Index: 1.23

	Issues	Volume*
Advances	671	8.50
Declines	737	11.45
Unchanged	493	4.09
Total Volume		24.04

* 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*
February 7, 1977	946.31	101.89	20.70
February 4, 1977	947.89	101.88	23.13
February 3, 1977	947.14	101.85	23.79
February 2, 1977	952.79	102.36	25.70
February 1, 1977	958.36	102.54	23.70
January 31, 1977	954.37	102.03	22.92
January 28, 1977	957.53	101.93	22.70
January 27, 1977	954.54	101.79	24.36
January 26, 1977	958.53	102.34	27.84
January 25, 1977	965.92	103.13	26.34