News stories from Wednesday October 2, 1974

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

Richard Moore, a White House lawyer who was special counsel to former President Nixon, was named an unindicted co-conspirator in the Watergate cover-up case, according to sources familiar with the case. The addition of his name was apparently the result of conversations recorded on presidential tapes which were recently turned over to the prosecution. [New York Times] Ed Reinecke submitted his resignation as Lt. Governor of California and minutes later received a suspended 18-month sentence for lying to the State Judiciary Committee during a probe of International Telephone and Telegraph Corporation contributions to Republican finances. Federal Judge Barrington Parker placed him on one month's probation. A Washington jury convicted him of lying about his discussion of a $400,000 pledge from I.T.T. with former Attorney General John Mitchell. [New York Times] The White House announced the resignation of the Rev. Dr. John McLaughlin, a Jesuit priest who has been an avid defender of former President Nixon, and five other holdovers from the previous administration. They are Richard Moore, a special counsel; David Wimer, a special assistant for personnel; David Parker, a special assistant who has joined the Commerce Department; Bruce Herschensohn, a deputy special assistant, and Noel Koch, a speech writer at the White House. [New York Times] Secretary of Labor Peter Brennan announced the start of the distribution of $350 million to states and localities with substantial unemployment to create 73,000 public service jobs. For New York, New Jersey and Connecticut, the funds will total over $57 million. This would provide for about 11,500 jobs in schools, hospitals, libraries and other departments. [New York Times] The Chase Manhattan Bank disclosed that it had overvalued by $34 million the securities in its bond trading account, The resulting revaluation of its inventory of bonds will reduce the bank's earnings after taxes by about $15 million. The bank's announcement sent a tremor of concern throughout the banking community. [New York Times] A substantial cutback in oil consumption by the main importing countries has been suggested by the United States as the first step in a strategy to force down world prices. Some European officials said Secretary of State Kissinger had mentioned a 15 percent cutback at meetings in Washington with British, West German, French and Japanese ministers last weekend. [New York Times] The Senate voted 41 to 39 to shelve the controversial foreign aid bill, at least until after the November elections. The effect was to uphold the Ford administration. The vote came after critics of its foreign policy had forced through a series of restrictive amendments, including a ban on some clandestine activities of the Central Intelligence Agency. The legislation with its amendments goes back to the Foreign Relations Committee and may not be revived this year. [New York Times] China's Deputy Foreign Minister, Chiao Kuan-hua, hailed the Arab countries' use of oil as a political weapon and said this "historic pioneering action" could have enormous impact in the third world's struggle against "imperialist plunder and exploitation." In his address before the United Nations General Assembly, he called detente a "kind of quack medicine hawked by the Soviet leadership everywhere." [New York Times] Israel's military situation as opposed to Egypt and Syria is stronger now than before the outbreak of the war a year ago, according to a government study given to President Ford just before his recent talks with Premier Yitzhak Rabin of Israel. It warned that unless there was movement in negotiations, the odds were for renewed Arab-Israeli conflict on a greater scale. [New York Times]

Stock Market Report

Dow Jones Industrial Average: 601.53 (-3.29, -0.54%)
S&P Composite: 63.38 (-0.01, -0.02%)
Arms Index: 1.36

	Issues	Volume*
Advances	828	5.48
Declines	511	4.59
Unchanged	402	2.16
Total Volume		12.23

* 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*
October 1, 1974	604.82	63.39	16.89
September 30, 1974	607.87	63.54	15.00
September 27, 1974	621.95	64.94	12.23
September 26, 1974	637.98	66.46	9.06
September 25, 1974	649.95	67.57	17.62
September 24, 1974	654.10	68.02	9.84
September 23, 1974	663.72	69.42	12.13
September 20, 1974	670.76	70.14	16.25
September 19, 1974	674.05	70.09	17.00
September 18, 1974	651.91	67.72	11.76