News stories from Thursday July 6, 1978

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

J. Wallace LaPrade was dismissed from the Federal Bureau of Investigation by Attorney General Griffin Bell. The former head of the bureau's New York regional office, who has been a key figure in an investigation of illegal investigative techniques against antiwar radicals, announced his own dismissal and said he would appeal it. He characterized himself as a "scapegoat." [New York Times] The Attorney General is in contempt for refusing to release the files on 18 informers who spied on the Socialist Workers Party for the F.B.I., a judge in ruled in Manhattan. The order was issued against Griffin Bell after he submitted an affidavit warning that a contempt order would create an unseemly confrontation between the Executive and the Judiciary. [New York Times] California's budget was trimmed $388.5 million by Governor Jerry Brown, who said he was motivated by Proposition 13's changes in government financing. The cuts included an $80.8 million raise for state employees. It was the first time in 17 years that California's budget has not grown bigger. [New York Times] The F.B.I.'s seizure of documents from the Church of Scientology last July was legal, a judge ruled in Los Angeles. The action could clear the way for the documents to be presented to a grand jury considering conspiracy and other charges against the church. But church attorneys said they would seek a stay of the ruling. [New York Times] Reduced requests for transportation aid are being urged by Robert Strauss, a presidential adviser, as a means of cutting the inflationary impact of a transportation bill pending in the House. Meanwhile, a coalition speaking for public causes announced a campaign to head off "overexpenditures" on highway construction in the bill. [New York Times] Israeli fighters flew over Beirut to underline warnings by Israel that it would not allow Lebanon's Christian population to be "annihilated" by Syrian troops. In a statement, Israel said it would consider "steps" to halt the shooting in Lebanon. The Syrians have been trying to bring powerful right-wing Christian militia groups under their control.Israeli spokesmen asserted that the Syrians were massacring Christian civilians in Beirut and said this was a lesson of what could happen when a small country struggles for independence. President Carter appealed for peace in Lebanon, asking "all parties with influence over the situation" to try to halt the fighting and restore stability there. His call and a similar one by the State Department were directed at the Syrian peace force, Lebanese Christian militias and Israel, which threatened to intervene in Lebanon again. [New York Times] Israel will reject Egypt's plan for peace but is expected to support Foreign Minister Moshe Dayan's participation at a conference in London with the Egyptian Foreign Minister, Mohammed Ibrahim Kamel. An Israeli spokesman said the Egyptian plan, which was described as inadequate, did contain some positive elements. Parts of the plan, he said, appeared to be negotiable. [New York Times] Canada acted to protect caribou and other Arctic wildlife by prohibiting further exploration for oil, gas and other resources in a 15,000-square-mile wilderness area making up the northern third of the Yukon Territory. In addition, the Canadian Wildlife Service will open talks with the United States on joint measures to safeguard caribou herds migrating between the Canadian North and Alaska. [New York Times]

Stock Market Report

Dow Jones Industrial Average: 807.17 (+1.38, +0.17%)
S&P Composite: 94.32 (+0.05, +0.05%)
Arms Index: 0.94

	Issues	Volume*
Advances	602	9.17
Declines	843	12.04
Unchanged	443	3.78
Total Volume		24.99

* 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 5, 1978	805.79	94.27	23.74
July 3, 1978	812.89	95.09	11.57
June 30, 1978	818.95	95.53	18.11
June 29, 1978	821.64	95.57	21.66
June 28, 1978	819.91	95.40	23.27
June 27, 1978	817.31	94.98	29.28
June 26, 1978	812.28	94.60	29.25
June 23, 1978	823.02	95.85	28.53
June 22, 1978	827.70	96.24	27.17
June 21, 1978	824.93	96.01	29.11