News stories from Monday January 22, 1979

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

A tight budget was submitted to Congress by President Carter, who warned that "real sacrifices must be made" to overcome inflation. The budget for the next fiscal year is intended to slow economic growth without precipitating a recession. The President said that the budget was necessarily "lean and austere," but insisted it kept faith with the obligations of "a compassionate society" to the disadvantaged.The final budget will vary greatly from President Carter's proposals. Since 1975, Congress has been scrutinizing spending and taxes as a whole, as the White House does. The new congressional budget process has cut spending and brought more order into congressional budget decisions. There are few bold initiatives or dramatic cuts in the proposed budget. Mandated increases, such as higher welfare payments as a result of inflation, represent most rises. Austerity for many social programs would result from the budget proposals. Aid for the disadvantaged would scarcely keep up with inflation. There would be major cuts in some Social Security and disability benefits, hospital costs, jobs for the unemployed and housing for the poor. [New York Times] Cuts in public service jobs proposed in the budget could eliminate up to 7,000 employees from the New York City payroll and thousands more in other cities, according to urban specialists. Cities also face cutbacks in programs for school lunches, law enforcement aid, housing construction and summer jobs for youths. [New York Times] The proposed defense budget of $122.7 billion marks an increase of slightly more than 3 percent over the present fiscal year and stresses combat readiness in Europe and the modernization of nuclear forces. [New York Times] Increased aid for non-commercial TV and radio will be recommended by the Carnegie Commission on the Future of Public Broadcasting, according to key sources. They said that the panel, stressing the need for improved programming, would suggest annual financing of $1 billion a year after 1981 -- almost three times the present level. The funds would be provided by commercial broadcasters, but primarily by the federal government. [New York Times] The trial of T. Cullen Davis, the Texas millionaire charged with paying for the murder of a judge, ended with no verdict. The jury reported that it remained split, 8 to 4, for conviction as it had been since it received the case last Tuesday after 10 weeks of testimony. Judge Wallace Moore, after polling the jury, declared a mistrial. [New York Times] People's Temple assets are being sought by the Justice Department. The agency filed a suit seeking to recover more than $4.2 million from the cult to pay for bringing the bodies of more than 900 members to this country after their deaths in Guyana. [New York Times] Iran's religious opposition is determined that a new cabinet be installed to replace the present one, declared Ayatollah Mahmoud Taleghani, Teheran's chief Moslem leader. He also warned that the Iranian people might start a "holy war" against the army if it tried a coup.The Shah has delayed his arrival in the United States. Ardeshir Zahedi, the Iranian Ambassador in Washington, said he had told the Shah he should stay in another country because coming to the United States would be viewed as an abdication. The envoy said he believed that the Shah could eventually return to Iran. [New York Times] A top Palestinian guerrilla was fatally wounded in the explosion of a remote-controlled bomb in Beirut. The leader reputedly planned the attack on the Israeli Olympic team in 1972. Four bodyguards and five passers-by also died in the blast, the police reported, and several passers-by were wounded. The Palestinians said that Israeli intelligence was responsible. [New York Times] British municipalities were struck by several hundred thousand employees in a 24-hour walkout that increased the widespread disruptions begun two weeks ago when truck drivers went on strike. It was the most severe labor unrest in Britain since the government imposed a three-day work week temporarily five years ago. [New York Times]

Stock Market Report

Dow Jones Industrial Average: 838.53 (+1.04, +0.12%)
S&P Composite: 99.90 (+0.15, +0.15%)
Arms Index: 0.96

	Issues	Volume*
Advances	664	9.92
Declines	773	11.06
Unchanged	434	3.41
Total Volume		24.39

* 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 19, 1979	837.49	99.75	26.80
January 18, 1979	839.14	99.72	27.26
January 17, 1979	834.20	99.48	25.31
January 16, 1979	835.59	99.46	30.34
January 15, 1979	848.67	100.69	27.51
January 12, 1979	836.28	99.93	37.12
January 11, 1979	828.05	99.10	24.56
January 10, 1979	824.93	98.77	24.97
January 9, 1979	831.43	99.33	27.20
January 8, 1979	828.14	98.80	21.44