News stories from Tuesday July 26, 1977

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

Mayor Beame of New York City lashed out at President Carter in a City Hall news conference, charging that his program to revise welfare would not include a federal takeover of local welfare costs to which the Mayor said Mr. Carter had pledged himself. He announced a local -- and perhaps national -- petition campaign to put community pressure on the White House. [New York Times] United States Steel suffered a 36.2 percent drop in its net income in the second quarter although sales ran 8.3 percent higher. Edgar Speer, its chairman, called the results disappointing and cited both lagging demand and foreign competition. He said that foreign steel producers were engaging in practices designed to "usurp" the American market by unfair pricing that was assisted by their governments and warned of the need for improved productivity or higher prices. [New York Times] Arthur Burns, chairman of the Federal Reserve, took issue with the Treasury Department in testimony before the House Banking Committee that the United States should be protecting the value of the dollar, which has been slipping in the international exchange markets. [New York Times] Stock prices fell again, depressed by disappointing profits for Exxon and. United States Steel. The Dow Jones industrial average dropped 6.06 points to 908.18, bringing the two-day setback to more than 15 points. Investor fears ranging from inflation and higher interest rates to a possible economic slowdown sapped any buying enthusiasm for stocks. [New York Times] The disability program of the Social Security Administration, one of the government's biggest but least understood public assistance activities, has become in the view of its critics one of the most arbitrary, with poor people in similar circumstances often getting vastly different treatment. [New York Times] Amending the Clean Air Act in advance of the August recess was urged on congressional leaders by President Carter to prevent a possible shutdown of auto assembly lines this fall. After a White House meeting, the Speaker of the House, Tip O'Neill, said he had promised to continue the session beyond the scheduled recess Aug. 6 if necessary to push the legislation through. But Senator Edmund Muskie said the administration could find ways of keeping the lines moving if the deadlock continued. [New York Times] The Nets and Knicks reached an agreement that lets the Nets move their basketball games to New Jersey and gives the Knicks an indemnification of $4 million for a move within their territory. Federal Judge Robert Carter, who had urged a settlement, gave his approval. The payment is in addition to the 1976 indemnification of $4 million to the Knicks when the Nets joined the National Basketball Association. [New York Times] Most of the American combat troops now in Korea will remain there until the final year of the planned withdrawal, in response to a plea by the South Korean government, according to a joint statement in Seoul. The headquarters of the Second Infantry Division and two of its brigades will stay until the final phase of the pullout of four to five years. Defense Secretary Harold Brown gave this word to President Park Chung Hee, who was said to be pleased. [New York Times] Prime Minister Menachem Begin officially approved three controversial Israeli settlements on the West Bank of the Jordan River, and touched off a swift negative reaction from the Carter administration, clouding the friendly atmosphere of his recent Washington talks. The State Department expressed "deep disappointment" at the decision, which it saw as "an obstacle to the peacemaking process." [New York Times] In a show of support for President Anwar Sadat, the Carter administration privately told key members of Congress that it would like to sell Egypt more than $200 million in military reconnaissance and transport planes. The United States also showed willingness to join other nations in providing military assistance to Somalia. [New York Times] Southern Taiwan was struck by a hurricane that killed 28 persons and destroyed 20,000 homes, officials said. Winds up to 120 miles an hour knocked out power and badly damaged industry in the port city of Kaohiung. The main entrance to the port was closed by the sinking of 28 vessels. [New York Times] England's cricket lovers are shocked at more than 59 leading players who have been barred from participation in major matches for signing to appear in a barnstorming series organized by an Australian television promoter. Feelings of chauvinism have burst into flame over the crisis. [New York Times]

Stock Market Report

Dow Jones Industrial Average: 908.18 (-6.06, -0.66%)
S&P Composite: 100.27 (-0.58, -0.58%)
Arms Index: 1.07

	Issues	Volume*
Advances	479	5.73
Declines	946	12.16
Unchanged	485	3.50
Total Volume		21.39

* 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*
July 25, 1977	914.24	100.85	20.43
July 22, 1977	923.42	101.59	23.11
July 21, 1977	921.78	101.59	26.88
July 20, 1977	920.48	101.73	29.38
July 19, 1977	919.27	101.79	31.94
July 18, 1977	910.60	100.95	26.89
July 15, 1977	905.95	100.18	29.12
July 13, 1977	902.99	99.59	23.16
July 12, 1977	903.41	99.45	22.47
July 11, 1977	905.53	99.55	19.79