News stories from Friday February 3, 1978

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

Unemployment declined slightly in January, confirming, government officials said, that the sharp drop in joblessness announced at the end of 1977 was no mirage. The December rate fell to 6.4 percent from 6.7 percent in November. The Bureau of Labor Statistics reported that the jobless rate in January was 6.3 percent. The percentage figure means that 6.2 million Americans are unemployed. [New York Times] Domestic car sales fell 7.1 percent in the last 10-day sales period in January from those of a year ago, the four major American manufacturers said. Except for Ford, the companies reported a decline in sales for the eighth consecutive period. [New York Times] Tokyo faces bankruptcy and a financial takeover by the central government in negotiations similar to those that followed New York City's financial crisis. Tokyo and central government officials have begun talks on necessary spending cutbacks and a proposed new bond issue to help cover the city's $979 million deficit. [New York Times] Suspension of the Chicago Daily News on March 4 was announced by Marshall Field, its publisher. However, he indicated that the 102-year-old paper might be saved through talks with unions, in an attempt to cut the paper's large losses. A total loss of $21.7 million since Sept. 30, 1974, was cited by Mr. Field. [New York Times] Time Inc. is buying the Washington Star for $20 million from Joe Allbritton, a Texas millionaire who acquired the 125-year-old paper and its allied radio and television stations four years ago. The purchase agreement, announced by Time, involves only the Star, which is Washington's only evening newspaper. Mr. Allbritton will remain as the Star's publisher for at least five years under the purchase agreement. [New York Times] The French franc declined under heavy pressure in foreign exchange trading, reflecting fears of a leftist victory in next month's parliamentary election. The decline, which began Thursday, was accompanied by a slump on the Paris stock exchange. By the end of the day, the franc was trading at about 4.91 to the dollar. The demand for gold bars and coins, which the French traditionally hoard in times of crisis, jumped dramatically. France's central bank intervened to support the franc by tightening interest rates. [New York Times] Most stock prices held steady despite weakness in some glamour issues and in the Dow Jones industrial average. The average declined 4.42 points to 770.96, but the Dow Jones transportation and utility averages had nominal gains. [New York Times] Heavier taxation of capital gains on inherited property would be delayed until 1980 under a plan approved by the Senate Finance Committee. The administration and liberals in Congress strongly opposed the bill, which was sponsored by Senator Harry Byrd Jr., Independent-Democrat of Virginia. The committee also voted to extend through 1978 the present taxation formula for Americans working abroad. The law now in effect would impose more stringent taxation beginning this year. This has been strongly opposed by the 150,000 Americans working abroad. [New York Times] A ransom of $100,000 was paid by Calvin Klein, the fashion designer, for the release of his 11-year-old daughter who had been kidnapped on Manhattan's Upper East Side this morning on her way to school. The ransom was paid under the eyes of F.B.I. agents who made no effort to stop the person who picked up the money in the Pan Am Building. The child was found in an East 97th Street apartment. The F.B.I. said that three persons were believed to be involved. [New York Times] President Anwar Sadat urged the United States to become "the arbiter" in the Arab-Israeli dispute on his arrival at the White House. Later he went to Camp David with President Carter for talks on the Middle East. Mr. Sadat, saying that the Middle East was now at "a historic and crucial crossroads," reiterated his wish that the United States take a more active role in breaking the impasse in the Egyptian-Israeli negotiations and also show more sympathy for the Arab cause. Mr. Carter said the United States would "spare no efforts in the cause of peace," declaring "I reconfirm and recommit" the country to that goal. [New York Times] The United States ordered Vietnam's chief delegate to the United Nations, Dinh Ba Thi, to leave the country because of his alleged complicity in an espionage case involving a United States Information Agency official and a Vietnamese national. But Mr. Dinh said that he would not leave and the Vietnamese delegation at the United States protesting the "slanderous accusations" against him said that he would remain at his post. [New York Times]

Stock Market Report

Dow Jones Industrial Average: 770.96 (-4.42, -0.57%)
S&P Composite: 89.62 (-0.51, -0.57%)
Arms Index: 1.21

	Issues	Volume*
Advances	684	7.67
Declines	637	8.65
Unchanged	488	3.08
Total Volume		19.40

* 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*
February 2, 1978	775.38	90.13	23.05
February 1, 1978	774.34	89.93	22.24
January 31, 1978	769.92	89.25	19.87
January 30, 1978	772.44	89.34	17.40
January 27, 1978	764.12	88.58	17.60
January 26, 1978	763.34	88.58	19.60
January 25, 1978	772.44	89.39	18.69
January 24, 1978	771.57	89.25	18.69
January 23, 1978	770.70	89.24	19.38
January 20, 1978	776.94	89.89	7.58