News stories from Friday January 26, 1979

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

The cutbacks in social programs proposed for the 1980 budget were balanced and fully justified "in a year of a tight budget," President Carter said at his televised news conference. "I have not robbed the poor or the deprived or social programs in order to provide for defense," he said, clearly annoyed by criticism in Congress.Attacks on the administration were stepped up by Senator Edward Kennedy in the Senate. He said at a hearing on a proposed health care budget that President Carter's proposed budget "undermines the health care system" of the nation, giving the Secretary of Health, Education and Welfare, Joseph Califano, details of what he termed shortcomings in proposed health appropriations. [New York Times] Leaders of two unions agreed to a merger that would establish the biggest union within the A.F.L.-C.I.O. The Retail Clerks International Union and the Amalgamated Meat Cutters and Butcher Workmen would be known as the United Food and Commercial Workers International Union, with a total membership of 1.2 million. [New York Times] Wyoming proposes to raise the state's speed limit to 65 miles per hour from the government-mandated 55 m.p.h. limit, which was instituted in 1974 as an emergency measure and later became law in that state. The higher speed limit has been approved by the Wyoming Senate, and if the House does the same it could cost the state $51.7 million in federal aid, more than one-third of its total highway budget. The measure is supported warmly throughout the West. [New York Times] Urban smog standards were lowered by the Environmental Protection Agency. whose administrator, Douglas Costle, insisted that the reduction resulted from new health research and not from pressure from White House inflation fighters. He said that he had decided to raise the allowable amount of ozone, a major component of smog, by 50 percent over the smog standard set by the E.P.A. in 1971. [New York Times] A retired F.B.I. agent told the Justice Department that he had spent "20 percent of my career" conducting illegal burglaries for the bureau. Wesley Swearingen, who retired from the bureau in May 1977, gave federal prosecutors who are preparing to try three former F.B.I. agents on break-in charges, details about the bureau's most sensitive operations. Most of the break-ins took place at left wing organizations. [New York Times] Nelson Rockefeller died after suffering a massive heart attack at his office at the Rockefeller Center complex in Manhattan. The 70-year-old, four-time Governor of New York and former Vice President was rushed to Lenox Hill Hospital after security aides tried unsuccessfully to revive him. [New York Times] At least 15 Iranians were killed and dozens more were wounded by army troops in an attempt to break up a demonstration in Teheran by thousands of supporters of Ayatollah Ruhollah Khomeini. The demonstration was held in defiance of martial law. Prime Minister Shahpur Bakhtiar reportedly agreed to deal severely with demonstrators under pressure from the armed forces.France seems disenchanted with Ayatollah Khomeini, the exiled Iranian opposition leader. Among the reasons for the change in French official thinking are the Ayatollah's dogmatic attitude, a feeling that time is no longer on his side in Iran's power struggle, and the fear that his proposed Islamic regime would bar French interests, hampering Iran's industrialization. [New York Times] No congressional resolution in support of Taiwan's future security is needed, President Carter said at a televised news conference, rejecting the views of several leaders in Congress who have called for specific legislation to affirm continuing support for Taiwan after the United States ends its defense treaty. Mr. Carter said, however, that he was committed to "a strong and prosperous and free people" in Taiwan. [New York Times] Italy's Communists said they would no longer support the Christian Democratic government of Prime Minister Giulio Andreotti, and the government's fall appeared inevitable. The Prime Minister is expected to address Parliament Monday and submit his resignation later. [New York Times] Vietnam's Prime Minister told Asian ambassadors that he expected soon to go to Phnom Penh to sign a number of accords with Cambodia, including one that would sanction the stationing of Vietnamese troops there, Western and Asian sources in Bangkok said. [New York Times]

Stock Market Report

Dow Jones Industrial Average: 859.75 (+5.11, +0.60%)
S&P Composite: 101.86 (+0.67, +0.66%)
Arms Index: 0.67

	Issues	Volume*
Advances	980	22.13
Declines	500	7.52
Unchanged	414	4.58
Total Volume		34.23

* 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 25, 1979	854.64	101.19	31.45
January 24, 1979	846.41	100.16	31.71
January 23, 1979	846.85	100.60	30.18
January 22, 1979	838.53	99.90	24.39
January 19, 1979	837.49	99.75	26.80
January 18, 1979	839.14	99.72	27.26
January 17, 1979	834.20	99.48	25.31
January 16, 1979	835.59	99.46	30.34
January 15, 1979	848.67	100.69	27.51
January 12, 1979	836.28	99.93	37.12