News stories from Wednesday November 30, 1977

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

A "historic breakthrough" was President Carter's term for the first direct Egyptian-Israeli contacts. He urged other Arab states to follow Egypt's lead on face-to-face talks. Strongly endorsing President Sadat's proposed Cairo meeting, which the Soviet Union and the Arab countries have spurned, he told his press conference that the United States would be represented in Cairo by Alfred Atherton, who is Assistant Secretary of State for Near Eastern and South Asian affairs. [New York Times] Before today's endorsement of the Cairo meeting, Washington had tried but failed to persuade President Sadat to delay proposing it and did persuade him to delay the date to Dec. 14, high administration officials disclosed. Worry about angry reaction in other Arab capitals and possible disruption to broader negotiating efforts led to this play for time. During the maneuvering there was an unsuccessful effort to induce Soviet participation, if only at a relatively low level. [New York Times] President Carter will defer his more controversial tax revision proposals next year to insure early passage of "substantial tax reductions," he told his news conference. He thus confirmed the position of his Treasury Secretary and other cabinet members that the urgency of a quick tax cut to stimulate the economy requires deferral of a more complicated tax overhaul. [New York Times] The October trend was up for the fourth straight month, according to the Commerce Department index designed to predict the future of the American economy. The index of leading indicators rose 0.7 percent, close to the average for the last three years. A department economist said the showing in the last few months was consistent with above-average growth. [New York Times] To protect the skidding dollar, the Federal Reserve intervened heavily from August to October in foreign exchange markets by selling the equivalent of $236.8 million in West German marks. Officials of the Fed who discussed this stressed that the aim was not a specific level for the dollar but a steadying effect on market conditions. There has been no intervention so far in the other strong currency against which the dollar has been depreciating, the Japanese yen. [New York Times] Stock prices gradually moved up, with glamour issues leading the way following Tuesday's sharp drop. The Dow Jones industrial average gained 2.43 points to close at 829.70. International Business Machines, which had dropped on rumors of plans to cut prices of its medium-size computers, rose 1 1/8 points following a denial. [New York Times] A move against J.P. Stevens, the giant textile company, has been authorized by the National Labor Relations Board. Its legal staff will seek a nationwide injunction against violating the law in resisting unionization, which will be the first time such an injunction has been sought against an employer. The N.L.R.B. cited the company's past and present record of what it called unfair labor practices. [New York Times] A strategic review, including reassessment of the "triad concept" of relying on land-based intercontinental missiles, bombers and submarine-launched missiles, each category designed to be able to sustain Soviet attack and retaliate, has begun in the Defense Department. It follows defense planners' concern over Soviet advances. [New York Times] Israel rejected a proposal by Secretary General Kurt Waldheim that preparatory talks for a Geneva conference be held at the United Nations, seeing no purpose in an additional meeting. But Mr. Waldheim said he did not accept the Israeli refusal as final. [New York Times] A national debate in Spain has begun over relations between church and state, following open criticism by Catholic bishops of the first draft of a new Constitution that is being written by a committee of Parliament. The controversy over phrasing that would separate church and state if the document is approved by Parliament next year and later by popular referendum could become momentous. The Spanish church is wealthy and receives heavy state subsidies today. [New York Times]

Stock Market Report

Dow Jones Industrial Average: 829.70 (+2.43, +0.29%)
S&P Composite: 94.83 (+0.28, +0.30%)
Arms Index: 0.64

	Issues	Volume*
Advances	752	11.95
Declines	676	6.87
Unchanged	465	3.85
Total Volume		22.67

* 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*
November 29, 1977	827.27	94.55	22.95
November 28, 1977	839.57	96.04	21.57
November 25, 1977	844.42	96.69	17.91
November 23, 1977	843.30	96.49	29.15
November 22, 1977	842.52	96.09	28.30
November 21, 1977	836.11	95.25	20.11
November 18, 1977	835.76	95.33	23.93
November 17, 1977	831.86	95.16	25.11
November 16, 1977	837.06	95.45	24.95
November 15, 1977	842.78	95.93	27.47