News stories from Tuesday May 2, 1978

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

A compromise farm bill won quick Senate approval, shifting the political heat on the issue to the White House. It would give the Secretary of Agriculture discretion to raise subsidy and price support levels on grains and cotton. President Carter is expected to sign it. [New York Times] President Carter's inflation fighters make it increasingly clear with each speech that the administration's campaign for voluntary price-wage restraint is to be a blend of persuasion and threat -- but without sanctions. The rhetoric is tough and still newsworthy, leaving open the question as to what the administration will do' to preserve its image of vigilance when the tough talk becomes familiar and no longer makes headlines. [New York Times] Stock prices pulled back slightly on accelerating volume. The Dow Jones industrials closed at 840.18, down 4.15 points, after an early afternoon recovery faltered. [New York Times] The Christmas week bombing of Hanoi in 1972 "was the most difficult decision I made during the entire war," according to Richard Nixon, who said in excerpts from his memoirs that the decision "was also one of the most clear-cut and necessary ones." He said he ordered the bombing because North Vietnam had made it clear it had no intention of reaching an agreement to end the war. [New York Times] President Carter's military jet package for the Middle East was opposed in a "resolution of disapproval" signed by 21 of the 37 members of the House International Affairs Committee. The move by the panel's majority buoyed Israel's supporters, who opposed the White House policy of linking the sales of planes to Israel, Egypt and Saudi Arabia. [New York Times] The first thorough curriculum change at Harvard in 30 years will markedly stiffen course requirements for a bachelor's degree. The faculty of Arts and Sciences at Harvard voted for a proposal by Dean Henry Rosovsky to end the present "general education" program and replace it with a more structured "core curriculum." [New York Times] The three principal candidates for the Democratic Senatorial nomination in New Jersey agreed substantially on issues but, in a debate, stressed their differences in style and background. Bill Bradley defended his use of celebrities as fundraisers. Richard Leone talked of his experience in government. And Alexander Menza emphasized that he was the only candidate who had held public office. [New York Times] Prime Minister Fukuda of Japan told members of the administration and Congress in Washington that Tokyo was determined to reduce huge trading surpluses by raising its economic growth rate to increase imports and by curbing shipments of certain principal export items, such as cars. Having come to this country for an American-Japanese summit conference, Mr. Fukuda is to see President Carter for talks dominated by economic issues arising from Japan's $9 billion surplus with the United States last year. [New York Times] The transitional government of Rhodesia removed the bans imposed a decade ago on two political parties that claim control of .thousands of black guerrillas. It also appealed to the guerrillas to make peace. The initiatives were promptly rejected by one of the principal guerrilla leaders, Joshua Nkomo. [New York Times] The new Communist-dominated Afghan government kept dozens of tanks still parked at Kabul's main intersections five days after a military coup, and hundreds of troops were still on patrol. But the mood was relaxed as soldiers in battle dress joked with pedestrians out for a stroll. [New York Times] A cabinet shuffle in Cairo was heralded by President Anwar Sadat, who told a labor rally he wanted his cabinet to become more "dynamic." Mr. Sadat also warned his domestic critics that they risked a "confrontation" if they persisted in attacks on his government. His remarks appeared intended to calm discontent over the stalemated peace initiative. [New York Times]

Stock Market Report

Dow Jones Industrial Average: 840.18 (-4.15, -0.49%)
S&P Composite: 97.25 (-0.42, -0.43%)
Arms Index: 0.85

	Issues	Volume*
Advances	676	17.19
Declines	810	17.46
Unchanged	428	6.75
Total Volume		41.40

* 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*
May 1, 1978	844.33	97.67	37.02
April 28, 1978	837.32	96.83	32.85
April 27, 1978	826.92	95.86	35.47
April 26, 1978	836.97	96.82	44.45
April 25, 1978	833.59	96.64	55.80
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