News stories from Monday May 15, 1978

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

Patricia Hearst returned to prison to serve time on her seven-year sentence for bank robbery. Judge William Orrick of Federal District Court in San Francisco was asked by Miss Hearst's lawyers in a closed hearing April 29 to reduce her sentence after the Supreme Court ruled not to hear her appeal. He placed a gag order on his ruling and left the next day for a month's vacation abroad. [New York Times] The Senate approved compromise budget goals agreed on by Senate and House conferees that set a spending level of $498.8 billion for the fiscal year starting Oct. 1. The budget goals of the conferees would result in an anticipated deficit of $50.9 billion, about $9.7 billion below that proposed by President Carter earlier this year, and well below the deficit figures in both the Senate and House budget resolutions. [New York Times] Law enforcement agents need not make an effort to minimize interception of private conversations when conducting a court-ordered wiretap if circumstances in the case made it "reasonable" to listen to everything, the Supreme Court decided, The Justices ruled 7 to 2 that a narcotics investigation in which only 40 percent of the telephone conversations intercepted related to the alleged conspiracy did not violate the congressional requirement to "minimize" eavesdropping on other communications. [New York Times] The stock market surged to its highest level in seven months, following a buying spree in the final hour of trading. A wide range of shares?glamour issues, basic industrials, and secondary issues advanced. The turnover in the final hour totaled 7.26 million shares. The day's total was 33.89 million shares. The Dow Jones industrial average, which had been falling, gained 6.06 points, closing at 846.76, its highest level since last Oct. 3. [New York Times] Auto sales were up 9.6 percent in the first 10 days in May from the year-earlier level, the four Detroit manufacturers said. It was the second best sales performance ever for that period, the industry reported. The four companies sold a total of 280,095 cars. Chrysler's sales were up 24.1 percent, Ford's 19.8 percent, General Motors 3.1 percent and American Motors 0.6 percent. [New York Times] The administration attacked a bill that would reduce capital gains taxes. The bill, supported by Republicans and a growing number of Democrats, is sponsored principally by Representative William Steiger, Republican of Wisconsin. He says he has the support of the majority of the Ways and Means Committee, an assertion that Democrats take seriously. Treasury Secretary Michael Blumenthal said in a letter to the committee that the bill would deprive the Treasury of more than $2 billion a year in revenue and that it "would steal much of the revenue" designated for corporate income tax deduction. [New York Times] NBC-TV will replace nearly one-third of its prime time evening hours with new programs, one of which will star Joe Namath. The network, number 3 in the ratings, is dropping more than a half dozen shows in an attempt to overtake ABC-TV, number 1 in the ratings, and CBS-TV, number 2. Among the shows being dropped are "The Bionic Woman," "Chico and the Man" and "James at 15." Mr. Namath will play a high school basketball coach in "The Waverly Wonders." [New York Times] Resorts International was granted a temporary license to operate a gambling casino in Atlantic City, the first legitimate casino in the nation outside Nevada. It seemed likely that the casino would open on the Atlantic City Boardwalk on May 26. [New York Times] The Senate upheld, 54 to 44, President Carter's controversial decision to sell warplanes in a package deal to Saudi Arabia, Egypt and Israel. The vote thwarted a move from the floor to block the sale and was a muted triumph for President Carter, who had sought to avoid a floor fight on the issue. [New York Times] Zaire's army said insurgents attempting to seize copper-producing Shaba Province had not captured two key towns, as the invaders had claimed. A military spokesman in Kinshasa said government troops still held most of the two towns -- Kolwezi and Mutshatsha -- that had been attacked by rebels based in neighboring Angola. [New York Times] Italy's Christian Democrats gained substantially in local elections, apparently benefiting from public reaction to the murder by terrorists last week of Aldo Moro, who had been the party's president. The Communist Party's candidates did not do so well, but its losses were not large enough to affect its standing as the second largest political force. [New York Times]

Stock Market Report

Dow Jones Industrial Average: 846.76 (+6.06, +0.72%)
S&P Composite: 98.76 (+0.69, +0.70%)
Arms Index: 0.63

	Issues	Volume*
Advances	827	19.14
Declines	651	9.56
Unchanged	451	5.19
Total Volume		33.89

* 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 12, 1978	840.70	98.07	46.60
May 11, 1978	834.20	97.20	36.64
May 10, 1978	822.16	95.92	33.33
May 9, 1978	822.07	95.90	30.86
May 8, 1978	824.58	96.19	34.68
May 5, 1978	829.09	96.53	42.68
May 4, 1978	824.41	95.93	37.52
May 3, 1978	828.83	96.26	37.60
May 2, 1978	840.18	97.25	41.40
May 1, 1978	844.33	97.67	37.02