News stories from Wednesday May 11, 1977

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

President Carter's proposal to increase Social Security taxes paid by employers, if enacted by Congress, could add fiscal stress to state and local governments, including New York City. Public employers would have to seek new taxes to pay their added share, according to Social Security officials, or choose instead to withdraw from the system altogether. [New York Times] Agreement on defense spending was reached by House and Senate budget conferees after key Senate committee chairmen promised to cooperate on reduced funds. The tentative $118.5 billion ceiling still faces difficulty in the House of Representatives. [New York Times] The ban on Concorde flights to Kennedy International Airport, imposed last year by the Port Authority of New York and New Jersey pending a study of the supersonic airliner's impact on other cities, was ruled illegal in federal court. Invoking federal supremacy, Judge Milton Pollack, in effect, upheld the federal decision in February 1970 authorizing British Airways and Air France each to conduct two flights daily for a 16-month test period. The Port Authority said it would appeal and asked for a stay in the service, which the lines planned to start in late June. [New York Times] The steel industry seemed to accept the 6 percent price increase for its products going into automobiles, appliances, machinery and tools announced by the largest maker, U.S. Steel. Republic, which had earlier scheduled an average 8.8 percent increase for some products, decided to fall in line. The Carter administration had voiced satisfaction with U.S. Steel's rise and had hoped that the less inflationary increase would prevail. [New York Times] The stock market sagged under selling pressures that weighed heavily on two leading stocks -- Eastman Kodak and International Business Machines, Dow Jones industrials slumped 9.24 points, closing at 926.90. Kodak and I.B.M. were affected by investor disenchantment with issues that carry high price-earnings multiples but pay relatively low dividends. [New York Times] A timetable for banning chlorofluorocarbons as spray can propellants was announced by three federal agencies -- the Food and Drug Administration, Environmental Protection Agency and Consumer Product Safely Commission. The phaseout during the next two years is to protect against risk of human cancer and a threat to the ozone layer surrounding the earth. [New York Times] Assurances to Israel of America's "special relationship" and promises of needed arms and advanced technology were made by Secretary of State Cyrus Vance alter talking with Israel's Foreign Minister, Yigal Allon, at the United States Embassy in London. Mr. Vance said American suggestions for a Middle East solution would be made to the parties involved and there would be no attempt to impose a solution. Israeli confidence in the policy of the United States was said to have been restored. [New York Times] The final communique of the North Atlantic Treaty Organization meeting in London embraced President Carter's proposals for strengthening it, including his suggested year-long study of trends in East-West relations and the alliance's responses. But economic and other difficulties could impede. [New York Times] The war in Zaire's Shaba Province, now Iwo months old, has been inconclusive but has given President Mobutu Sese Seko a spectacular success on the diplomatic front. He was able to arrange things to internationalize what had been primarily a threat to his continuing rule from an invading force of 2,000 Katanean exiles, and obtained aid in the form of troops from Morocco and arms from France and Belgium. His position is now considered stronger than ever. [New York Times] Britain's new ambassador in Washington will be Peter Jay, 40-year-old journalist and broadcaster who happens to be the son-in-law of Prime Minister James Callaghan. There were criticisms of nepotism and inexperience from many members of Parliament. [New York Times]

Stock Market Report

Dow Jones Industrial Average: 926.90 (-9.24, -0.99%)
S&P Composite: 98.78 (-0.69, -0.69%)
Arms Index: 1.05

	Issues	Volume*
Advances	533	5.70
Declines	874	9.81
Unchanged	497	3.47
Total Volume		18.98

* 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*
May 10, 1977	936.14	99.47	21.09
May 9, 1977	933.90	99.18	15.23
May 6, 1977	936.74	99.49	19.37
May 5, 1977	943.44	100.11	23.45
May 4, 1977	940.72	99.96	23.33
May 3, 1977	934.19	99.43	21.95
May 2, 1977	931.22	98.93	17.97
April 29, 1977	926.90	98.44	18.33
April 28, 1977	927.32	98.20	18.37
April 27, 1977	923.76	97.96	20.59