News stories from Tuesday May 8, 1979

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

California will ration gasoline starting at midnight Wednesday. Rationing became official, under law, when Gov. Jerry Brown signed a proclamation of emergency. [New York Times] Total removal of federal controls on radio broadcasting may be near. The Federal Communications Commission had been considering loosening regulations initially on an experimental basis in large metropolitan radio markets, but its members were so impressed by an F.C.C. staff report on the radio industry that they appeared ready to propose formally that the regulations be removed permanently. [New York Times] Repeal of a special tax advantage that provides a foreign tax credit for domestic oil companies that pay royalties to foreign producers was voted overwhelmingly by the House. [New York Times] A Navy officer who was a counterspy was awarded the Legion of Merit for his performance that led to the arrest of two Russians who doubled as Soviet agents while working at the United Nations. One of the nation's highest military awards was presented to Arthur Lindberg at ceremonies at the Naval Engineering Center in Lakehurst, N.J. He spent 17 months as a counterspy, gathering evidence that broke up a Soviet spy ring. Two of the spies were convicted last October and recently exchanged for five Soviet dissidents who came to the United States. [New York Times] Public schools in the South are the least segregated in the country on the eve of the 25th anniversary of the Supreme Court decision that ordered racial integration for all the nation's schools. A study by the Institute for Southern Studies found that neither in the South nor anywhere else in the country has true integration or educational equality been achieved. In the industrial North, almost no further integration has been made in a decade. [New York Times] The settling of the main problems that held up completion of the strategic arms limitation talks between the United States and the Soviet Union is expected to be announced tomorrow or Thursday at the White House by Secretary of State Cyrus Vance.Private talks on troop reductions in Central Europe were held recently by the United States and Soviet Union. Officials in Washington said that both sides had expressed privately a desire to speed an accord on the troops issue now that the strategic arms limitation pact was completed. [New York Times] American and Saudi Arabian relations have been eroded because of "clear and sharp differences" over the Egyptian-Israeli peace treaty, Secretary of State Cyrus Vance said at a meeting of the House Foreign Affairs Committee. Defense Secretary Harold Brown told the committee that the Saudis have not, as they said they would, paid for any of the 50 F-5E jet fighters sold by the United States to Egypt. [New York Times] Jeremy Thorpe's trial on murder conspiracy charges began in London. The 50-year-old former leader of Britain's Liberal Party was defeated in the recent election, losing the seat he held for 20 years in the House of Commons, after a campaign in which the criminal charges were a major issue. Mr. Thorpe and three other men are accused of plotting to murder Norman Scott, who alleges that he had a love affair with Mr. Thorpe. [New York Times] Fidel Castro will visit the United Nations in September, diplomats at the headquarters in New York said, to demonstrate Cuba's increasing prominence as a leader of the third world. The visit reportedly will follow a meeting in Havana of the so-called non-aligned countries of Asia, Africa and Latin America. [New York Times] Russians were warned against alien ideas when thousands of foreigners come to Moscow for the 1980 Olympics. The warning against succumbing to ideological contamination came from Viktor Grishin, leader of the Moscow city party committee. [New York Times] Israel will reserve public land for future Jewish settlements in Israeli-occupied territory, according to an Israeli newspaper's report of Prime Minister Menachem Begin's proposals for autonomy on the West Bank and in Gaza. The newspaper Haaretz said Mr. Begin's proposals ended with a statement that Israel would never permit the creation of a Palestinian state and that it would claim sovereignty over the territories after five years of Palestinian autonomy. [New York Times]

Stock Market Report

Dow Jones Industrial Average: 834.89 (+1.47, +0.18%)
S&P Composite: 99.17 (+0.15, +0.15%)
Arms Index: 0.68

	Issues	Volume*
Advances	518	12.78
Declines	937	15.79
Unchanged	449	4.15
Total Volume		32.72

* 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 7, 1979	833.42	99.02	30.49
May 4, 1979	847.54	100.69	30.63
May 3, 1979	857.59	101.81	30.86
May 2, 1979	855.51	101.72	30.51
May 1, 1979	855.51	101.68	31.05
April 30, 1979	854.90	101.76	26.44
April 27, 1979	856.64	101.80	29.63
April 26, 1979	860.97	102.01	32.41
April 25, 1979	867.46	102.50	31.75
April 24, 1979	866.86	102.20	35.54