News stories from Friday November 6, 1981

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

The goal of a balanced budget by 1984 was abandoned by President Reagan. He disclosed at a White House meeting with congressional Republican leaders that he was giving up one of the chief aims of his administration. He rejected the suggestion of some Senate Republicans that he impose up to $7 billion in new taxes in 1982 rather than depend on further budget cuts to achieve a balanced budget. The President, while ruling out added 1982 tax rises, said he would consider imposing new taxes in 1983 and 1984. [New York Times] The jobless rate rose to 8 percent in October, its highest level in almost six years, the Labor Department reported. The rate has increased by one full percentage point since July. It is above the 7.6 percent peak of the 1980 recession and one percentage point below the 9 percent peak of reached in 1975 as the nation's worst recession since World War II came to an end. There are now 8,520,000 jobless people, one million more than in July. [New York Times] New dairy price supports that will increase retail milk prices slightly next October were accepted by a House-Senate conference committee after three days of meetings. [New York Times] Extension of the Voting Rights Act for 10 years was called for by President Reagan in the first definitive explanation of his administration's position. The President qualified his position by saving that he would support amendments making it easier for states and counties to be released from certain requirements of the law. [New York Times] The tally of the vote for Governor in New Jersey continued to change without determining the victor. Meanwhile, controversy widened over the activities of a group of people who patrolled and posted warning signs at polling places in some areas of the state on Election Day. Members of the group, the National Ballot Security Task Force, were sent to polling places in some Democratic areas at the behest of the Republican National Committee. [New York Times] Swedes held anti-Soviet protests as the Soviet submarine that ran aground never a Swedish naval base 11 days ago left for home, joining a flotilla of Soviet Navy ships that had been waiting for it outside Swedish waters. The Swedish government said that the incident was closed, although the sub's officers and their superiors in Moscow had never satisfactorily explained what the vessel was doing in a secret Swedish military zone. [New York Times] Britain's leaders are more worried about United States nuclear policy since the confusing and contradictory statements this week by Secretary of State Alexander Haig and Defense Secretary Caspar Weinberger. Senior American officials in London said many British political leaders, including members of the Prime Minister's cabinet, had been disturbed by the new controversy caused by Mr. Haig's statement that one NATO contingency plan for an attack on Europe by conventional Soviet forces included the possible detonation of a nuclear weapon as a warning. Mr. Weinberger said Thursday that there was no such plan. [New York Times] Participation in the Sinai peace force by Britain, France, Italy and the Netherlands has encountered obstacles. Reagan administration officials said that the European Economic Community had planned to issue a statement this week opening the way for the four countries to take part in the peacekeeping force. But the statement, which outlined their desires for a broader peace settlement that would take into consideration the rights of the Palestinians, was regarded as so offensive to Israel that the United States persuaded the Europeans not to issue it and to review their position. [New York Times] The return of 18.4 tons of gold to Czechoslovakia seized during World War II has been agreed to by the United States in negotiations completed in Prague. Czechoslovakia in turn has agreed to settle financial claims held by more than 2,500 Americans. The new accord must be approved by Congress. [New York Times]

Stock Market Report

Dow Jones Industrial Average: 852.45 (-6.66, -0.78%)
S&P Composite: 122.67 (-0.87, -0.70%)
Arms Index: 1.06

	Issues	Volume*
Advances	613	14.99
Declines	898	23.25
Unchanged	406	5.22
Total Volume		43.46

* 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*
November 5, 1981	859.11	123.54	50.86
November 4, 1981	866.82	124.74	53.47
November 3, 1981	868.72	124.80	54.62
November 2, 1981	866.82	124.20	65.12
October 30, 1981	852.55	121.89	58.56
October 29, 1981	832.95	119.06	40.07
October 28, 1981	837.61	119.45	48.10
October 27, 1981	838.38	119.29	53.03
October 26, 1981	830.96	118.16	38.20
October 23, 1981	837.99	118.60	41.98