News stories from Tuesday February 7, 1978
Summaries of the stories the major media outlets considered to be of particular importance on this date:
- Snow, an official 17.7 inches of it in New York City and more in the suburbs, kept much of the Northeast at a virtual standstill for the second day as the near-blizzard finally ended after 40 hours. With most area schools closed, most businesses shut and transportation disrupted, President Carter declared emergency-aid status for six states.
Massive beach erosion in New Jersey was attributed to wind-driven tides that caused millions of dollars worth of damage to homes, boardwalks and resort facilities from Cape May to Sandy Hook.
Stalled cars abandoned on Connecticut roads added to the problems of digging out from the worst snowstorm to hit the state in 90 years. As National Guardsmen remained on duty to help with the rescue of hundreds of people stranded in cars and in unheated or flooded homes, the White House announced that 500 Army engineers were on their way to the state to help in snow-clearing operations.
Elsewhere, the storm caused damage from Delaware to Maine, flooding coastal areas and knocking out power for several hours in parts of Boston. Other snowstorms snarled traffic in Chicago; blanketed Michigan, Wisconsin, North Dakota, Montana and Oklahoma and caused the first school closings in Anchorage since 1964.
[New York Times] - Oilfield problems in Saudi Arabia may prevent increased production, according to the Carter administration, which attributes the difficulties to mismanagement by American oil companies. The companies, which produce virtually all Saudi oil, deny there are serious problems and defend their management of the fields. [New York Times]
- Two informants are reportedly providing first-hand testimony that could lead to the prosecution of high echelon organized crime figures previously considered out of reach of law enforcement. According to federal and California authorities, the two men, James Fratianno described as a leading organized crime executioner, and Raymond Ferritto, a Pennsylvania crime figure, are cooperating in exchange for lenient treatment in pending cases and the promise of eventual relocation with new identities. [New York Times]
- The worldwide steel glut that has depressed the industry in the United States may have been aggravated by the Export-Import Bank, according to critics of the bank's policy of providing continued financing for steel mill and expansion projects. In the last five years, the bank has reportedly authorized nearly $460 million worth of assistance to foreign steel projects, with much of the money going to America's leading competitors. Now, however, resistance to the bank's policy is growing and the issue will be aired at congressional hearings. [New York Times]
- Stock prices surged on the New York Stock Exchange as the Dow Jones industrial average staged its best advance of the year, rising 10.23 points to close at 778.85, its high for the day. The rise was attributed to improved profits reported by many companies, which raised dividends. [New York Times]
- Expanded aid for college students will be proposed by President Carter as an alternative to a tuition tax credit proposal that has won growing support in Congress as a form of relief to middle-income families. The $1.2 billion Carter plan would expand eligibility for federal scholarships to students from families earning up to $25,000 a year and would make those with family incomes up to $40,000 eligible for subsidized loans. [New York Times]
- Israeli settlements on occupied Arab land came under further pressure from the Carter administration as President Anwar Sadat of Egypt told members of Congress that such settlements were a major barrier to peace. [New York Times]
- Ethiopian troops have stepped up the fighting against Somali forces in Ethiopia. In what appeared to be the start of a long-expected Ethiopian counter-offensive to drive the Somalis from Ethiopia's Ogaden region, a government spokesman said the Ethiopian troops were advancing toward a strategic town seized by Somalia last September. [New York Times]
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Stock Market Report
Dow Jones Industrial Average: 778.85 (+10.23, +1.33%)
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 6, 1978 | 768.62 | 89.50 | 11.63 |
| February 3, 1978 | 770.96 | 89.62 | 19.40 |
| 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 |