News stories from Tuesday June 21, 1977

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

Retail prices rose in May for a broad range of consumer goods and services, but at a lesser rate than in recent months, the Bureau of Labor Statistics reported. The rise in the Consumer Price Index last month was six-tenths of 1 percent. This was comparatively high for one month, but less than in April and February. Administration economists said they expected a better performance for food prices in the second half of the year. [New York Times] The industrial states of the Northeast and the Middle West would not benefit as much as would the rural states of the South and West under the Carter administration's proposed changes in the welfare law, according to calculations based on government data. The calculations show that the industrial states, with many of the poor living in decaying cities, might have to spend more than they do now to supplement federal welfare and job funds if poor residents are to receive the same benefits they now get. [New York Times] Major water polluters who do not meet the legal July 1 deadline for meeting tightened standards will face heavy fines and possible criminal penalties, the Environmental Protection Agency announced. More than 300 large companies and 100 municipalities will be subject to speedy enforcement action, an official said. [New York Times] Many popular daytime sedatives that may be bought without a prescription will be restricted, the Food and Drug Administration announced. Commissioner Donald Kennedy said the agency planned to ban the advertising of such products and perhaps some of the compounds next year. He said the drugs could be hazardous. [New York Times] The stock market advanced in the heaviest trading in two months amid signs that inflation was easing. The Dow Jones industrial average rose 4.33 points to finish at 928.60. Gainers on the New York Stock Exchange outpaced losers by more than 8 to 5. Volume rose to 29.73 million shares. [New York Times] Barring major oil companies from owning coal and uranium properties was viewed with skepticism by John Shenefield, Acting Assistant Attorney General in charge of the Justice Department's antitrust division. Though officially noncommittal, he reacted coolly to a bill aimed at such a prohibition in testimony before the House Interior Subcommittee on Energy and the Environment. [New York Times] A drive to bring the 1984 Summer Olympics to New York City has been started by Governor Carey, Mayor Beame and leaders of the state legislature. The drive would be financed by a $400,000 appropriation in the state's supplemental budget that will be submitted to the legislature within a week or 10 days. Besides money, a major obstacle is time to submit a report by July 31 to the United States Olympic Committee. [New York Times] New York State's 1973 drug law, with its stringent, mandatory sentencing provisions, did not reduce drug use or drug-related crimes, a federally-financed study found. Millions of dollars were spent in implementing the law -- the toughest in the country. [New York Times] Britain and the United States averted a rupture in airline service by agreeing on an aviation pact to replace one in effect since 1946. The pact gives Britain route concessions but maintains the U.S. refusal to allow controls that would diminish free airline competition. [New York Times] Hundreds of Ugandan refugees were reported to be fleeing into Kenya from what was described as a purge organized following an attempt on the life of Uganda's President, Idi Amin. The Kenya news agency replied widespread terrorism in Uganda and said that "innocent people" were being arrested and killed. The report also said that Mr. Amin had been wounded In an attack on his car and was now being treated at a hospital. [New York Times] A rebate to consumers from funds collected in higher oil taxes was approved by the House Ways and Means Committee, but it modified the administration's proposal and also limited it to one year. The projected rebate of $28 would cost the Treasury $4.6 billion in 1978 and come from proceeds of a tax on some domestically produced crude oil. The tax is designed to encourage conservation. [New York Times] A $1 billion loan to Portugal proposed by the Carter administration faces opposition from many European countries, diplomatic sources say. The dispute is expected to come into the open at a special meeting in Paris today to discuss contributions to such an international loan. [New York Times]

Stock Market Report

Dow Jones Industrial Average: 928.60 (+4.33, +0.47%)
S&P Composite: 100.74 (+0.32, +0.32%)
Arms Index: 0.87

	Issues	Volume*
Advances	876	15.80
Declines	561	8.85
Unchanged	485	5.08
Total Volume		29.73

* 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*
June 20, 1977	924.27	100.42	22.95
June 17, 1977	920.45	99.97	21.96
June 16, 1977	920.45	99.85	24.31
June 15, 1977	917.57	99.62	22.64
June 14, 1977	922.57	99.86	25.39
June 13, 1977	912.40	98.74	20.25
June 10, 1977	910.79	98.46	20.63
June 9, 1977	909.85	98.14	19.94
June 8, 1977	912.99	98.20	22.20
June 7, 1977	908.67	97.73	21.11