News stories from Friday February 29, 1980

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

Guerrillas in Bogota released their last five female captives among the diplomatic hostages they have been holding at the Dominican Republic's embassy since Wednesday and, in response, the Colombian government took an unspecified step toward negotiating for the freedom of the 30 or so officials still captive. The government said that the guerrillas had been "presented with the necessary conditions for establishment of a dialogue." [New York Times] A meeting of the hostages in Teheran and the United Nations commission investigating the Shah's regime could take place shortly, an aide of Ayatollah Khomeini said. Sources close to the panel said the meeting could take place in the next two days, and the commission reportedly was convinced that the meeting would be held over the weekend. [New York Times] Gasoline retailers predict a price rise of nearly 10 cents a gallon in the New York area in the next three rnonths, months ahead of the time set by federal Energy Department officials. The increase would raise the average price of a gallon of gasoline to $1.50. Most motorists in the New York region are now paying as much as $1.41 a gallon, but many motorists who shop around find that prices can vary by as much as 20 cents a gallon. Nevertheless, prices are continuing upward. Mobil is the latest distributor to raise its prices. Beginning tomorrow, Mobil gasoline at every grade will cost 2 cents more. [New York Times] Support for slashes in federal outlays to help curb inflation appeared to be gathering strength in Congress. At least three groups within the House were working on the drafting of streamlined budgets for fiscal year 1981, but their spokesmen acknowledged that finding large economies that would command majority support in committees and on the House floor might be difficult. [New York Times] Farmers will not be paid to cut back plantings this spring, the administration announced. The decision, disclosed while President Carter was searching for ways to reduce federal expenditures, could save taxpayers about $300 million in the coming year. Secretary of Agriculture Bob Bergland said that world demand for American feed and food grains was still increasing and that it would unwise to encourage a smaller corn crop next fall. [New York Times] Senator Kennedy has a new plan that he believes will pep up his faltering campaign and lead to the Democratic nomination for President. The reduced-scale plan, announced by Stephen Smith, Mr. Kennedy's campaign manager, calls for a concentrated effort over the next month in the industrial states of Illinois and New York, a token effort in President Carter's Deep South, a shifting about of some top campaign aides, further payroll reductions and three 30-minute campaign programs on television. He said that Mr. Kennedy would remain in the race because sooner or later the nation's economic problems would cause voters to abandon Mr. Carter. [New York Times] Battleships now in mothballs would be modernized by the Navy and used to expand its force in the Indian Ocean and elsewhere. The Navy is seeking approval from the Defense Department to recommission and refurbish four battleships, equipping them with long-range cruise missiles, and to recommission a World War II aircraft carrier, and to defer the retirement of two large cruisers. [New York Times] Increased spending on rail lines in the Northeast Corridor and deeper study of the feasibility of adding more high-speed trains elsewhere was urged by supporters of passenger train travel. An administration official, the president of Amtrak and Senate leaders called for a $750 million increase in the $1.75 billion authorization for the rehabilitation of the Washington-to-Boston lines in preparation for 120-mile-an-hour trains by the mid-1980's. [New York Times] Yigal Allon, an Israeli leader, died of a heart attack in Tel Aviv at the age of 61. A military as well as a political leader, he first gained prominence as the leader of Palmach, the commando strike force that operated before the establishment of Israel. [New York Times] Britain presented the Soviet Union its proposal for Afghanistan's neutralization at a meeting in London between Foreign Office officials and the Soviet Ambassador. [New York Times]

Stock Market Report

Dow Jones Industrial Average: 863.14 (+8.70, +1.02%)
S&P Composite: 113.66 (+1.31, +1.17%)
Arms Index: 0.53

	Issues	Volume*
Advances	929	27.04
Declines	554	8.54
Unchanged	403	3.23
Total Volume		38.81

* 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*
February 28, 1980	854.44	112.35	40.31
February 27, 1980	855.12	112.38	46.43
February 26, 1980	864.25	113.98	40.04
February 25, 1980	859.81	113.33	39.14
February 22, 1980	868.77	115.04	48.21
February 21, 1980	868.52	115.28	51.54
February 20, 1980	886.86	116.47	44.34
February 19, 1980	876.02	114.60	39.48
February 15, 1980	884.98	115.41	46.67
February 14, 1980	893.77	116.72	50.55