News stories from Tuesday April 25, 1978
Summaries of the stories the major media outlets considered to be of particular importance on this date:
- President Carter defended his tax-cut program of $25 billion in strong terms. He insisted it would not be inflationary and rejected suggestions in Congress and elsewhere that he reduce or delay the proposed program. The President used much of a 40-minute news conference to present a broad defense of his major legislative proposals, many of which are under attack on Capitol Hill. [New York Times]
- The Supreme Court ruled that an employer cannot charge women more than men to participate in a pension plan because women generally live longer than men. The Justices decided, 6 to 2, that from now on employer-operated pension plans may no longer deduct more from paychecks of women than men with the same wages on the ground that women are likely to draw 15 percent more in retirement benefits. The majority added that insurance companies were still free to weigh the relative longevity of men and women in setting rates. [New York Times]
- U.S. Steel reported a loss of $58.7 million for the first quarter. In the first quarter of last year, the nation's largest steel producer reported a profit of $27.4 million. [New York Times]
- General Motors had record sales of $14.9 billion, earning $870 million or $3.03 per share, in the first quarter of 1978, the biggest American automaker reported. Sales rose 10 percent over a year ago, the previous record, while profits were down 4 percent, but the earnings were still G.M.'s second best for a first quarter. [New York Times]
- Stock prices advanced again in the second heaviest trading in Big Board history -- 55.8 million shares changing hands. The advance was fueled by institutional buying. The Dow Jones industrial average, which was ahead 14.38 points at 1 P.M., its high for the session, closed with a gain of 7.53 points at 833.59. Profit taking eroded much of the day's earlier rise. [New York Times]
- The planned sale of fighter planes to Saudi Arabia and Egypt will soon be submitted to Congress, President Carter said in rejecting a new appeal by legislative leaders to delay the proposal, which is part of a $4.8 billion package also involving Israel. Linking the sales to all three countries was sharply criticized by Foreign Minister Moshe Dayan of Israel, who arrived in Washington to discuss ways to end the deadlock in peace talks. [New York Times]
- Easier money depends on the government's ability to reduce the fiscal deficit, G. William Miller, the Federal Reserve Board chairman said, adding that the central bank allowed interest rates to rise last week because of expectations of increased inflation. If the deficit is cut by $25 billion, there could be an "important" lowering of rates, Mr. Miller said in congressional testimony. [New York Times]
- The crisis over the Quebec government's drive to make the province independent of Canada has caused policy holders of Canada's largest insurance company to approve overwhelmingly a proposal to move its headquarters from Montreal to Toronto. Thomas Galt, its president, and the directors of Sun Life Assurance successfully overrode official and private arguments that the move would be a "blow to national unity" by declaring that it would help build needed confidence among policyholders. [New York Times]
- South Africa has accepted a Western plan aimed at preparing South-West Africa for independence under black majority rule, Prime Minister John Vorster announced in the Parliament in Cape Town. The proposals drafted by major Western powers call for the holding of free elections under United Nations supervision to prepare for independence under the territory's African name of Namibia by the end of this year. The plan also calls for a reduced South African military presence and for joint United Nations-South African administration to prepare for the election of a constituent assembly. [New York Times]
- White Rhodesians are fleeing the country in increasing numbers as guerrilla warfare increases and the economy falters. The situation has deteriorated more in the last year than in the previous decade. In large tribal border areas, the guerrillas hold effective sway and dozens of white farms in border regions have been abandoned, opening new sanctuaries for the terrorists. [New York Times]
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Stock Market Report
Dow Jones Industrial Average: 833.59 (+7.53, +0.91%)
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 24, 1978 | 826.06 | 95.77 | 34.52 |
| April 21, 1978 | 812.80 | 94.34 | 31.54 |
| April 20, 1978 | 814.54 | 94.54 | 43.23 |
| April 19, 1978 | 808.04 | 93.86 | 35.06 |
| April 18, 1978 | 803.27 | 93.43 | 38.97 |
| April 17, 1978 | 810.12 | 94.45 | 63.49 |
| April 14, 1978 | 795.13 | 92.92 | 52.28 |
| April 13, 1978 | 775.21 | 90.98 | 31.58 |
| April 12, 1978 | 766.29 | 90.11 | 26.22 |
| April 11, 1978 | 770.18 | 90.25 | 24.30 |