News stories from Tuesday April 11, 1978

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

The Panama Canal pacts face a new hurdle. Senator Dennis DeConcini, who has already succeeded in attaching one controversial reservation to the treaties, said he would propose a provision to give the United States an immediate right to send troops anywhere in Panama to keep the canal open. [New York Times] Public approval of President Carter's economic performance has dropped to a new low, according to the latest New York Times/CBS News poll. The survey, which also found that most Americans expected economic conditions to deteriorate, was made before his announcement today of a new drive against inflation. Only 32 percent of those surveyed approved of his economic record and 54 percent disapproved -- the first time this negative rating exceeded 50 percent. [New York Times] An anti-inflation program was announced by President Carter, who called on government, industry and labor to "sacrifice for the common good." The President ruled out the use of mandatory wage and price controls, but he again urged labor and business to hold salary and price increases to less than the average rate of the last two years. Mr. Carter's program, announced in a speech in Washington, stopped short of the strong measures that many economists believe are needed to combat effectively the inflation spiral.The response of business leaders to President Carter's anti-inflation program ranged from polite hopes for success to restrained enthusiasm, but they and economists said in effect they had yet to see what else he proposed to do about the major problem. [New York Times] Stock prices fell modestly in a consolidation after five successive sessions of gains. Issues were lower both before and after President Carter's anti-inflation speech. The Dow Jones industrial average declined 3.47 points to close at 770.18. [New York Times] Britain's new budget calls for sizable tax cuts and small increases in spending. The London government, in announcing the budget in Parliament, said it was contributing to a new "common effort" to solve world economic problems. The cautious $4.7 billion program to stimulate Britain's economy falls far short of what many ruling Labor Party supporters had sought. [New York Times] Tax relief for college tuition was approved by the House Ways and Means Committee. The proposed bill would allow subtraction from taxes owed of up to $100 for dependent college students this year, up to $150 next year and up to $250 in 1980. [New York Times] Many F.B.I. agents are concerned, bureau sources said, as a result of the decision by Attorney General Griffin Bell to call for administrative discipline of agents involved in illegal wiretapping, mail opening and break-ins against the Weather Underground. The sources said that many of the 68 agents involved believed they had been assured of exemption from administrative punishment, and that many received letters giving them immunity from prosecution. [New York Times] An Italian terrorist was arrested after being wounded during an ambush in which a police officer was fatally wounded in Turin by a group of suspected members of the Red Brigades. Italian authorities said they hoped the arrest might lead to a breakthrough in their search for former Prime Minister Aldo Moro, who was kidnapped by the group four weeks ago. [New York Times] Governor Carey of New York vetoed the death penalty bill. In announcing his long-expected action against the measure, he termed capital punishment ''the ultimate deception." The Senate sponsor of the bill said he had enough votes to override the veto there, but the Assembly sponsor said he was three votes short of the two-thirds needed to override in that chamber. The outcome is regarded as uncertain. [New York Times] Israeli forces began withdrawing from part of southern Lebanon in the first move toward compliance with a United Nations Security Council call for complete withdrawal. The Israelis withdrew up to several miles from seven villages and were replaced by contingents of United Nations peacekeeping troops. The Israeli pullback was carried out without much ceremony and despite continuing skepticism in Israel that the United Nations force can prevent the return of the Palestine Liberation Organization. [New York Times] Arkady Shevchenko refused to return home, the Russians charged, because the United Nations Under Secretary General had been coerced by American intelligence agents who were holding him "under duress." The accusations, which broke the Soviet delegation's silence on the issue, were termed "ludicrous" by Ernest Gross, the lawyer for the top-ranking Soviet Secretariat member. [New York Times]

Stock Market Report

Dow Jones Industrial Average: 770.18 (-3.47, -0.45%)
S&P Composite: 90.25 (-0.24, -0.27%)
Arms Index: 1.04

	Issues	Volume*
Advances	614	8.27
Declines	750	10.47
Unchanged	503	5.56
Total Volume		24.30

* 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 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
April 3, 1978	751.04	88.46	20.23
March 31, 1978	757.36	89.21	20.13
March 30, 1978	759.62	89.41	20.46
March 29, 1978	761.78	89.64	25.45
March 28, 1978	758.84	89.50	21.60