News stories from Tuesday April 18, 1978

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

The Panama Canal will be given to Panama. The Senate voted to relinquish the canal on Dec. 31, 1999, moving to establish a new spirit of relations with Latin America and saving President Carter from a major political defeat. The Senate vote was 68 to 32, just one vote over the two-thirds majority required by the Constitution, and the outcome was in doubt until just before the historic roll call. The vote effectively ended a 13-year negotiating process, although some financial details remain to be resolved by both chambers of Congress, probably next year.Panama accepted the canal pacts as amended by the Senate. Gen. Omar Torrijos, the government chief, said on a nationwide broadcast that approval by Washington was "one of the greatest and most awaited triumphs" in his country's history. The government urged Panamanians to celebrate in the streets, where excited crowds gathered. [New York Times] The body of Aldo Moro was sought in vain by Italian forces on skis and in helicopters after kidnappers of the political leader had asserted in a statement that he was dead and his body had been thrown into a mountain lake 100 miles northeast of Rome. The searchers found the lake covered with a solid blanket of ice and no human tracks on the snowy slopes around it. Italian authorities believed the statement might have been a maneuver to divert police attention and make it easier to move Mr. Moro from one hideout to another. [New York Times] The administration's tax plan suffered more setbacks in the House Ways and Means Committee. The panel rejected President Carter's proposal to raise an additional $2.6 billion a year by tightening deductions for medical expenses and casualty losses. The committee also adopted a proposal to permit deductions for charitable contributions by taxpayers who take the standard deduction, which the Treasury estimated would lose $2 billion in revenue. [New York Times] Stock prices fell moderately on profit taking after three sessions of soaring prices and frenetic trading. The Dow Jones industrial average, which was in the minus column through most of the session, closed down 6.85 points at 803.27. In the three previous trading days, the average soared nearly 44 points. [New York Times] Increased first quarter earnings were reported by three of the nation's largest banks -- Chase Manhattan, Bankers Trust and Wells Fargo & Company. David Rockefeller, chairman of the Chase Manhattan Corporation, parent of the country's third-largest commercial bank, reported to shareholders a 30 percent gain in operating profits and expressed confidence in growth in domestic and foreign loans.Citicorp announced a 15.5 percent rise in first quarter operating earnings after two quarters of declines. The parent company of New York's largest bank held its annual stockholders' meeting in Chicago, underscoring the nationwide character of much of its business and its desire to increase it. [New York Times] Watergate tape excerpts may not yet be copied, aired or sold by broadcasters and recording companies, the Supreme Court ruled. Dividing 7 to 2, the justices concluded that the networks had no constitutional right to reproduce and circulate the taped material because Congress had established an access system of its own. Texts of the tapes were printed in full at the time of the Watergate cover-up trial. The majority indicated that anyone seeking sound reproductions of the tapes could apply to the General Services Administrator for permission, but declined to give him any guidelines. [New York Times] Port Said is a smugglers' haven. The flow of contraband was unintentionally encouraged by the Egyptian government's decision after the 1973 war to make the port a custom-free zone to lure home its refugees, revive its ravaged economy and foster foreign investment. [New York Times] Indonesians are fighting guerrillas in eastern Timor months alter Indonesia invaded Portugal's former colony and 21 months after it was integrated into Indonesia's territory. Western Timor was already part of Indonesia. The eastern region is closed to foreigners, particularly reporters. [New York Times]

Stock Market Report

Dow Jones Industrial Average: 803.27 (-6.85, -0.85%)
S&P Composite: 93.43 (-1.02, -1.08%)
Arms Index: 1.22

	Issues	Volume*
Advances	441	8.60
Declines	1,108	26.46
Unchanged	387	3.89
Total Volume		38.95

* 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 17, 1978	810.12	94.45	63.49
April 14, 1978	795.13	92.92	52.28
April 13, 1978	775.21	90.98	31.58
April 12, 1978	766.29	90.11	26.22
April 11, 1978	770.18	90.25	24.30
April 10, 1978	773.65	90.49	25.74
April 7, 1978	769.58	90.17	25.17
April 6, 1978	763.95	89.79	27.36
April 5, 1978	763.08	89.64	27.26
April 4, 1978	755.37	88.86	20.13