News stories from Friday June 10, 1977

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

James Earl Ray, who had been sentenced to a 99-year prison term for the assassination of the Rev. Dr. Martin Luther King, escaped from a Tennessee maximum-security prison with six other inmates. He and the others, officials said, climbed over the wall of Brushy Mountain State Prison. One of the six others was recaptured, state troopers said. [New York Times] President Carter was plainly irritated over the changes made in his energy program as it went through congressional committees. He suggested in a statement prepared for reporters by his press secretary that committees had surrendered to pressure from the oil and automobile industries and said the "people of this country will be the ones to suffer" if his energy proposals are "thwarted." Jody Powell, the press secretary, adding an observation of his own, said that the deregulation of natural gas prices, voted Thursday by a House subcommittee, was a "ripoff of the American consumer." [New York Times] Two congressional critics of the costly and controversial B-1 bomber, which would replace the B-52 as the Air Force's major strategic bomber, say that President Carter, who had opposed the supersonic B-1 in his campaign, now seems to be in favor of at least its limited production. They had a meeting at the White House with the President, who said he would "go into seclusion and decide this month" whether to approve the bomber. [New York Times] Retail sales are continuing to rise. The Commerce Department said that seven-tenths of 1 percent more was spent in retail stores in May than in April and 13 percent more than in May last year. The biggest gains over April were made by grocery stores and apparel and accessory stores. [New York Times] Stock prices moved up a little when news reports allayed Wall Street's fear of higher short-term interest rates, which would add to corporate overhead. The Dow Jones industrial average showed only small changes, with none of its 30 industrial components moving up or down as much as a point. It was up 0.94, closing at 910.79. Some oil issues showed good gains. [New York Times] Citibank, often a trendsetter on loan rates, kept its prime rate unchanged at 6¾ percent. In addition, in a move apparently intended to mollify administration and congressional critics, as well as for competitive reasons, the bank changed the formula under which it sets its prime, the rate banks charge their most creditworthy customers. The bank's decision was "wise," said Henry Reuss, chairman of the House Banking, Finance and Urban Affairs Committee. The Council on Wage-Price Stability will begin to monitor interest rates, Mr. Reuss said. [New York Times] Alabama's court system, which had almost closed down when its operating funds became exhausted last week, was voted a $3.7 million special appropriation by the legislature. The courts since June 1 had been operating on a restricted schedule under a state Supreme Court order. [New York Times] A ban on all explosions of nuclear devices will be discussed in Washington Monday by the United States and the Soviet Union, the State Department announced. The ban is one of the basic aims of President Carter's arms control program. The Soviet government, American officials said, is receptive to the proposal. [New York Times] For the first time, more oil was shipped last year by the Soviet Union to the West than to its Communist allies. Soaring Siberian production and high world prices apparently made it advantageous to divert more oil to earn Western currencies. The increased shipments confirm predictions by some American economists that the centrally planned Soviet economy would respond to increased prices by adjusting Its fuel policies and consumption patterns. [New York Times] A vast plain of rubble is all that is left of Tangshan, which had been a major city in northern China until an earthquake struck 11 months ago. The barren horror of the demolished city was described by one of the first foreign correspondents permitted in the earthquake area. It is estimated that 750,000 people were killed in and around the city. [New York Times] Uganda put further pressure on British nationals living there by forbidding them to gather or travel in groups larger than three persons. The government radio quoted a military spokesmen as saying that Britons -- there are about 240 in Uganda -- defying the order would be arrested and "put in any nearest military or other prison." Earlier this week, Britons were prohibited from leaving. [New York Times]

Stock Market Report

Dow Jones Industrial Average: 910.79 (+0.94, +0.10%)
S&P Composite: 98.46 (+0.32, +0.33%)
Arms Index: 0.77

	Issues	Volume*
Advances	860	11.72
Declines	542	5.72
Unchanged	467	3.19
Total Volume		20.63

* 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*
June 9, 1977	909.85	98.14	19.94
June 8, 1977	912.99	98.20	22.20
June 7, 1977	908.67	97.73	21.11
June 6, 1977	903.07	97.23	18.93
June 3, 1977	912.23	97.69	20.33
June 2, 1977	903.15	96.74	18.62
June 1, 1977	906.55	96.93	18.32
May 31, 1977	898.66	96.12	17.80
May 27, 1977	898.83	96.27	15.73
May 26, 1977	908.07	97.01	18.62