News stories from Thursday July 19, 1979

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

President Carter reshaped his cabinet, dramatically dismissing one member, accepting the forced resignation of another, transferring a third and accepting the long expected resignation of Attorney General Griffin Bell. Joseph Califano .was forced to resign as Secretary of Health, Education and Welfare and is expected to be replaced by Patricia Roberts Harris, now Secretary of Housing and Urban Development. Michael Blumenthal resigned as Treasury Secretary and is to be succeeded by G. William Miller, chairman of the Federal Reserve. Benjamin Civiletti, the Deputy Attorney General, was named to succeed Mr. Bell. Transportation Secretary Brock Adams may also leave. [New York Times] Joseph Califano said politics and poor relations with the White House staff were mentioned by President Carter as reasons for his dismissal, Mr. Califano has offended powerful interests in the South with his campaign against cigarette smoking and efforts to increase integration in North Carolina's state university system.Michael Blumenthal maintained he had resigned voluntarily as Treasury Secretary and that there had been "no coercion at all." He sought to counter to reporters the general conclusion that he had been dismissed. [New York Times] Top Democrats expressed concern and bewilderment at the proffered mass resignations of President Carter's cabinet and top staff members and the announced shakeup at a time when he was trying to rebuild confidence in his administration. [New York Times] Failure to take heed of warnings was acknowledged by officials of the company that built the nuclear reactor that developed problems leading to the accident at the Three Mile Island power plant. Aides warned more than a year earlier that the company's reactors might be prone to the type of accident that occurred last March. [New York Times] The auto workers union won a major victory in its bid to represent workers at a huge plant of the General Motors Corporation in Oklahoma City. Workers voted in favor of union representation by a margin of nearly 2 to 1. If the union had lost the key contest, it would have curbed many union organizing efforts in the conservative, anti-union Sun Belt. [New York Times] Reform of the military retirement system was proposed by the administration in an effort to cut soaring costs of the $10 billion program by 25 percent, although the savings would not start before the year 2000. Under the complex plan, military personnel would have the option of receiving special payments after 10 years of active duty and benefits at age 60. [New York Times] Two new nuclear plants were opposed by the staff of the New York state Department of Public Service. The. Long Island Lighting Company plans to build the plants in Jamesport, Long Island. The staff said it had changed its position of support to opposition because construction costs, which have risen to $4.5 billion after an original estimate of $1.2 billion, might increase even more because of design revisions that may result from inquiries into the nuclear accident near Harrisburg in March. [New York Times] The civil war in Nicaragua ended as rebels seized control of Managua, completing the defeat of the National Guard two days after General Somoza fled into exile in Miami. Sandinist guerrillas occupied the former President's military compound, seizing hundreds of weapons and freeing dozens of political prisoners. The war took more than 10,000 lives.The fear of "another Cuba" resulting from the fall of the Somoza regime in Nicaragua is causing concern to most Latin American governments, but those committed to democracy are preparing to play an active role to prevent this from occurring. [New York Times] Overseeing the Israeli withdrawal from the Sinai could be carried out by the United Nations under a formula devised by Washington and Moscow. The plan calls for the use of experienced but unarmed U.N. observers as an alternative to the U.N. peacekeeping force, which was proposed under the Egyptian-Israeli peace treaty. Moscow has served notice that it would veto a renewal of the mandate authorizing operation of the peace force that expires next Tuesday. [New York Times] An accord to govern Iran was announced by Prime Minister Bazargan, who said that he and Ayatollah Khomeini had agreed on a sharing of power by the Revolutionary Council and the embattled government. [New York Times] Averell Harriman backed a pact limiting arms, warning a Senate hearing that a rejection would increase the prospect of a "hard-line" anti-American succeeding Leonid Brezhnev, the aging Soviet leader. [New York Times]

Stock Market Report

Dow Jones Industrial Average: 827.30 (-1.28, -0.15%)
S&P Composite: 101.61 (-0.08, -0.08%)
Arms Index: 1.18

	Issues	Volume*
Advances	790	11.64
Declines	614	10.64
Unchanged	472	4.50
Total Volume		26.78

* 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 18, 1979	828.58	101.69	35.95
July 17, 1979	828.50	101.83	34.27
July 16, 1979	834.90	102.74	26.62
July 13, 1979	833.53	102.32	33.07
July 12, 1979	836.86	102.69	31.77
July 11, 1979	843.86	103.64	36.64
July 10, 1979	850.34	104.20	39.73
July 9, 1979	852.99	104.47	42.46
July 6, 1979	846.16	103.62	38.57
July 5, 1979	835.75	102.43	30.29