News stories from Friday October 19, 1979

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

The economy grew at an annual rate of 2.4 percent in the three-month period ended Sept. 30, the government reported. This was a surprising show of strength in view of a decline in the previous quarter and the general view among economists that a recession had set in. However, Treasury Secretary William Miller remained pessimistic, saying slower, negative growth was expected as the impact of inflation curbs took hold. [New York Times] A ban on reactor construction has been recommended by the President's Commission on the Accident at Three Mile Island until its proposals for improving nuclear safety have been adopted, officials of the advisory commission said. The vote for a moratorium was taken at closed meeting this week, and is subject to revision at the panel's final working session this weekend. If the recommendation stands, it could have far-reaching consequences for the nuclear industry. [New York Times] A sharp selloff in securities markets followed signs that the Federal Reserve is tightening credit still further and intends to push interest rates still higher. Bond prices fell drastically and yields on Treasury bills, notes and bonds rose to their highest levels in the nation's history. [New York Times] President Carter expects to recoup in the Southern states' presidential primaries, offsetting a possible sweep by Senator Edward Kennedy in the New England primaries, he told a group of Democratic political insiders invited to a meeting at the White House. He also believes that the Illinois primary on March 18 will be an important "barometer" for him and Senator Kennedy. [New York Times] President Carter won a solid victory over Senator Kennedy in the Florida Democratic caucuses last Saturday, Democratic officials there said as the ballot counting neared completion. The voting in the caucuses, which chose delegates to the state party convention in St. Petersburg next month, appeared to be running 2 to 1 in Mr. Carter's favor on a statewide basis. [New York Times] The possibility that adults conspired to foment racial violence outside Boston's public schools this week will be investigated. The inquiry has been ordered by Police Commissioner Joseph Jordan, who said at a joint news conference with Robert Wood, the Superintendent of Schools, "There is a strong indication that these incidents have been orchestrated by adults." [New York Times] Gerald Ford said he would not run for President on the Republican ticket in 1980. The former President urged his supporters to "jump into the fray" behind other candidates, saying that he had made "a firm decision not to become an active candidate." [New York Times] Public hearings of an investigation of judicial misconduct in California's Supreme Court were declared unconstitutional by a panel temporarily replacing the Supreme Court, whose justices had been called to testify publicly at the inquiry. The Commission on Judicial Performance had been investigating allegations that public announcement of decisions in sensitive cases had been delayed to enhance Chief Justice Rose Bird's chances of winning a confirmation election last November. [New York Times] A federal judge prohibited public discussion by prosecutors and law enforcement officials of the 10-week disappearance of Michele Sindona, Some lawyers say that Judge Thomas Griesa might have gone beyond the free-press and fair-trial standards of the American Bar Association. [New York Times] South Korean students defied martial law and held street demonstrations in Pusan against President Park Chung Hee's regime for the fourth night. More than 550 people have reportedly been arrested since the demonstrations began, but it appears that discipline in the country is deteriorating. [New York Times] Chinese cultural officials have decided to allow the Peking Art Gallery to put on a controversial exhibition of paintings and sculpture by 23 artists whose recent extemporaneous sidewalk show was closed by the Ministry of Public Security. The works include a number of formerly taboo abstractionist oil paintings as well as wood sculptures depicting arrogant bureaucrats. [New York Times] A big step forward in Soviet research on fusion reaction, widely regarded as future energy source, has been reported by Moscow newspapers. The Kurchatov Institute of Atomic Energy in Moscow was said to have begun operating the first stage of a giant atomic particle accelerator. [New York Times]

Stock Market Report

Dow Jones Industrial Average: 814.68 (-15.44, -1.86%)
S&P Composite: 101.60 (-2.01, -1.94%)
Arms Index: 1.65

	Issues	Volume*
Advances	162	2.43
Declines	1,512	37.40
Unchanged	235	2.60
Total Volume		42.43

* 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*
October 18, 1979	830.12	103.61	29.59
October 17, 1979	830.72	103.39	29.66
October 16, 1979	829.52	103.19	33.76
October 15, 1979	831.06	103.36	34.85
October 12, 1979	838.99	104.49	36.39
October 11, 1979	844.62	105.05	47.55
October 10, 1979	849.32	105.30	81.62
October 9, 1979	857.59	106.63	55.57
October 8, 1979	884.04	109.88	32.61
October 5, 1979	897.61	111.27	48.25