News stories from Monday April 25, 1977

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

The administration was denounced by Senator Daniel Patrick Moynihan for delaying the submission of a welfare reform bill so that it might not take effect until after fiscal year 1979. But officials in the Department of Health, Education and Welfare said that their target had always been, and remained, the 1979 budget. [New York Times] Rough weather delayed efforts to cap the blowout in an oil well in the North Sea between Britain and Norway. With a forecast of winds up to 60 miles an hour and 20-foot waves for tomorrow and Tuesday, the repair work may not resume until later in the week. At least two days of calm weather are needed to do the work. [New York Times] A tough hospital cost control proposal was sent to Congress by President Carter amid growing indications that his administration had serious questions about the type of national health insurance program for all Americans that he promised in his campaign. The President's remarks and comments from health planners led to reports that forceful action on a health insurance program would be deferred for several years, if not dropped. [New York Times] Nearly $36 billion for weapons procurement and military research was authorized by the House without much opposition. The amount is about 30 percent of the Pentagon budget, and the measure is in keeping with the general outlines of President Carter's defense policy. [New York Times] The energy conservation taxes proposed by President Carter were, Republican leaders of Congress suggested, a disguised general tax increase to finance welfare reform and help the President meet his commitment to balance the budget. The Senate Governmental Affairs Committee circulated among members a draft bill that would set up a Department of Energy but would not give the head of that department the authority to establish natural gas and electricity rates. The administration would permit the Energy Secretary to set those rates. The draft bill, however, would let the Secretary establish crude oil prices, but those prices would be subject to court challenge. [New York Times] The stock market had a bad day, and the Dow Jones industrial average closed at its lowest level in 15 months as key glamour issues continued to slide. Disappointing corporate profits and fears of rekindled inflation put a damper on trading. The Dow declined steadily and closed with a loss of 12.47 points at 914.60. Its most recent biggest daily decline occurred Jan. 13, 1976, when it closed at 912.94. The Dow lost a total of almost 28 points in the last three trading days. [New York Times] Exxon's earnings declined 11.6 percent in the first quarter despite a sales gain of 9.2 percent in the same period. Exxon is not the only major oil company reporting an earnings slide. Last week, Standard Oil of Ohio and Gulf reported decreases in earnings, but earnings of some other big oil companies increased. The disparity seems to reflect how the various companies fared during a bitter winter, among other factors. [New York Times] The General Motors Corporation made an agreement with the New York state Attorney General under which 5,000 New York residents who bought Buick, Oldsmobile or Pontiac cars equipped with Chevrolet engines may exchange their cars or get a mechanical performance insurance policy at no charge. General Motors simultaneously made the same offer to its car buyers across the country. The company's president, Elliott Estes, said that "General Motors has no desire, in making these proposals, to interfere in any way with the suits that have been filed in recent weeks." [New York Times] American Express Company issues will no longer be traded over the counter next month. The company, whose shares have a market value of more than $2.6 billion, is seeking a listing on the New York Stock Exchange. The listing is considered a certainty in view of the company's financial standing. [New York Times] King Hussein of Jordan, who is in Washington, and President Carter began talks on the Palestinian problems that the Arabs insist must be solved before any Middle East peace settlement can be achieved. A major problem is the question of Palestinian representation at the Middle East peace conference in Geneva, which has delayed resumption of the meeting. The King and the President discussed different formulas under which the Palestinians could be given the representation they demand. [New York Times] Zaire claimed recapture from Katangan-led insurgents of the important southern railroad town of Mutshatsha, the government press agency said. Zairian soldiers, backed by Moroccan troops, had ended the insurgents' month-long control of the town. [New York Times]

Stock Market Report

Dow Jones Industrial Average: 914.60 (-12.47, -1.35%)
S&P Composite: 97.33 (-1.11, -1.13%)
Arms Index: 1.27

	Issues	Volume*
Advances	304	2.97
Declines	1,213	15.01
Unchanged	382	2.46
Total Volume		20.44

* 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*
April 22, 1977	927.07	98.44	20.70
April 21, 1977	935.80	99.75	22.74
April 20, 1977	942.59	100.40	25.09
April 19, 1977	938.77	100.07	19.51
April 18, 1977	942.76	100.54	17.83
April 15, 1977	947.76	101.04	20.23
April 14, 1977	947.00	101.00	30.49
April 13, 1977	938.18	100.16	21.80
April 12, 1977	937.16	100.15	23.76
April 11, 1977	924.10	98.88	17.65