News stories from Tuesday January 8, 1980

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

American-Soviet ties cooled even more. In the latest move against the Soviet military intervention in Afghanistan, Washington ordered the withdrawal of an advance party of seven American consular officials from Kiev and the expulsion of 17 Soviet officials from a consular office being set up in New York. [New York Times] Financial sanctions against Iran proposed by the United States have been approved by other major industrial countries, according to diplomatic sources, who said that the proposals would be included in a resolution to be introduced in the United Nations. The planned sanctions would curb Iran's ability to obtain new loans, open new deposit accounts or convert dollars into other currencies. They would also increase the likelihood of Iranian debts being declared in default. [New York Times] New American-Egyptian military ties have been quietly undertaken in recent weeks in response to the crises in Iran and Afghanistan. The links involve joint air exercises involving the use of Washington's most costly and sophisticated electronic surveillance planes and about 300 Air Force personnel, administration officials said. Washington has also been granted base rights in Israel and is seeking facilities in Kenya, Somalia and Oman.Changes in foreign policy priorities have been forced on the Carter administration as a result of the situations in Iran and Afghanistan. Officials acknowledged that earlier aims of promoting human rights, restraining arms exports and curbing the spread of nuclear technology had been overshadowed by security concerns. [New York Times] Bert Lance must get a court review of his allegation that the government violated his right to an impartial investigation during a grand jury inquiry into his business affairs, a federal appeals court ruled. Justice Department prosecutors were unsure what effect the decision would have on the bank fraud and conspiracy trial of the former federal Budget Director, which is scheduled to begin Monday. [New York Times] False academic credits for athletes pose a major national dilemma for colleges and threaten coaches and instructors with criminal penalties. The abuses were confirmed by coaches and university officials, who say that every year, hundreds of college athletes, often with help from their coaches, remain in good standing as students by having fraudulent credits transferred from summer and extension programs offered by other schools. [New York Times] Oil and petrochemical workers struck plants around the country in a contract dispute. But major companies said there would be little or no effect on the nation's gasoline and heating oil supplies unless the strike continued far longer than is now expected. [New York Times] No more large California surpluses are in prospect, Gov. Jerry Brown warned in a letter accompanying his budget message to the state legislature. He said that the state could no longer make up for local governments' losses of revenue caused by the voters' approval of Proposition 13.New Jersey needs more revenue, Governor Byrne said in a State of the State message that opened the new session of the legislature soon after the state Senate passed an increase in the corporate income tax. The Governor said that New Jersey's need for rebuilding had not been halted by a leveling-off of population. Houston is seeking stability after 10 years of feverish expansion. The exuberant city, which has been the fastest growing metropolis in the nation, now seeks to consolidate its gains and deal with the problems caused by the pell-mell growth of the 1970's. [New York Times] A birth clinic for the conception of human embryos outside the mother's body will open in Virginia within two months, sponsors said after the state health authorities gave the laboratory final approval. But anti-abortion groups said they would go to court to delay or prevent the opening of the nation's first clinic of its kind. [New York Times] Israeli-Egyptian summit talks continued between Prime Minister Begin and President Sadat. They worked to resolve some thorny issues as the two countries move toward the establishment of diplomatic ties this month, after Israel completes the first phase of its withdrawal from Sinai. [New York Times]

Stock Market Report

Dow Jones Industrial Average: 851.71 (+19.71, +2.37%)
S&P Composite: 108.95 (+2.14, +2.00%)
Arms Index: 0.63

	Issues	Volume*
Advances	1,208	41.68
Declines	341	7.45
Unchanged	337	4.26
Total Volume		53.39

* 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*
January 7, 1980	832.00	106.81	44.50
January 4, 1980	828.84	106.52	39.16
January 3, 1980	820.31	105.22	50.47
January 2, 1980	824.57	105.76	40.61
December 31, 1979	838.74	107.94	31.53
December 28, 1979	838.91	107.84	34.42
December 27, 1979	840.10	107.96	31.40
December 26, 1979	838.14	107.78	24.95
December 24, 1979	839.16	107.66	19.15
December 21, 1979	838.91	107.59	36.16