News stories from Friday November 12, 1976

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

The first formal talks between American and Vietnamese diplomats since Saigon fell last year opened in Paris. The conference was considered a probing, preliminary meeting to test whether conditions were favorable for top-level negotiations on all issues. [New York Times] Government spending for the coming 1978 fiscal year is expected to approach or exceed $450 billion, even if the Carter administration proposes no new programs. The estimate was made by the Ford administration, which said that the projected rise in outlays would amount to about 10 percent. The budget document, required by law, said that the deficit for the present fiscal year could rise to $59.3 billion. [New York Times] A storm of protest rose in Mobile, Ala., over a federal court ruling ordering the city to replace its present city government with one more favorable to blacks. A group distributed petitions to impeach the judge who issued the order after concluding that the city commission, with each of its three members elected by citywide vote, "precludes a black voter from an effective participation in the election system." He ordered that a mayor be chosen by citywide vote and nine council members elected from different districts. [New York Times] A key witness who testified for the prosecution 10 years ago at the first murder trial of Rubin (Hurricane) Carter gave new and possibly more damaging testimony at the second trial of Mr. Carter and John Artis. The witness testified for the first time that, hours after three persons had been killed, the police showed her a cartridge and a shotgun shell they said they had just found in the car in which the two men were arrested. [New York Times] The nation's economic recovery is proceeding more slowly than was predicted by the Ford administration, according to Alan Greenspan, the President's chief economic adviser. In an interview, Mr. Greenspan acknowledged that the economy was still in a "pause" that was lasting longer than expected but that it would end. [New York Times] Stock prices drifted down in continued light trading. The Dow Jones industrial average lost 3.74 points to close at 927.69, bringing the loss for the week to 15.38 points. [New York Times] Seeking to clarify an issue, Arthur Burns, chairman of the Federal Reserve Board, said he expected to be able to cooperate with President-elect Carter's economic policies. [New York Times] The United Parcel Service and the Teamsters union, informed sources said, have agreed on the basic terms for ending an eight-week strike by warehousemen and deliverers in 15 Eastern states. Announcement of a settlement was reported to be awaiting completion of specific contract language and discussion of the proposed terms with local union officers. Operations may resume by the middle of next week. [New York Times] The Army's new main tank will be developed and built by the Chrysler Corporation in a program expected to cost $4.9 billion in the next decade. The Army awarded the contract to Chrysler over the General Motors Corporation after a two-year competition. The new tank is to incorporate components parallel to West German tanks in a major step toward standardizing equipment among NATO allies. [New York Times] Japan's economy will be stimulated by a program adopted by the Tokyo government, which faces nationwide elections Dec. 5. The effort to speed the slow pace of economic recovery calls for spending $3.45 billion in public works, private housing and more financing for smaller businesses. [New York Times] Increased American influence in so-called moderate Arab countries is being sought by Secretary of State Kissinger. United States diplomats said this was the explanation for Washington's joining in Thursday's unanimous criticism by the United Nations Security Council of Israeli policies in occupied Arab territories. Mr. Kissinger's efforts, the diplomats said, are being made in expectation of possible Arab-Israeli peace talks next year. [New York Times] Civil war in Angola has flared again, causing more than 9,000 refugees to flee to South-West Africa in the last two weeks. The refugees, mostly women and children, told reporters that Angolan government forces, aided by Cuban soldiers and black liberation guerrillas, had killed many men, burned huts and destroyed cattle and crops. The broad offensive seems aimed at ending resistance by one of three nationalist groups that vied for power after Angola gained independence from Portugal a year ago. [New York Times] Japanese-Soviet relations were eased by Tokyo's return to the Russians of the MiG-25 jet flown to Japan by a pilot who defected to the United States. The plane was returned in crated pieces and without ceremony at Hitachi as a Soviet fleet stood offshore. [New York Times]

Stock Market Report

Dow Jones Industrial Average: 927.69 (-3.74, -0.40%)
S&P Composite: 99.24 (-0.40, -0.40%)
Arms Index: 1.18

	Issues	Volume*
Advances	631	5.23
Declines	746	7.31
Unchanged	489	3.01
Total Volume		15.55

* 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*
November 11, 1976	931.43	99.64	13.23
November 10, 1976	924.04	98.81	18.89
November 9, 1976	930.77	99.32	19.21
November 8, 1976	933.68	99.60	16.52
November 5, 1976	943.07	100.82	20.78
November 4, 1976	960.44	102.41	21.70
November 3, 1976	956.53	101.92	19.35
November 1, 1976	966.09	103.10	18.39
October 29, 1976	964.93	102.90	17.03
October 28, 1976	952.63	101.61	16.92