News stories from Monday January 26, 1981

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

"Severe" mental problems trouble about a dozen of the former hostages, according to the Reagan administration. As a result, the welcoming ceremony at the White House tomorrow will be subdued. "It's not really a festive occasion," according to an administration spokesman, who said that 6,000 officials would greet the 52 freed Americans, but that there would be no formal parade or firing of cannons. [New York Times] Freedom on U.S. soil was savored by the former hostages. They emerged singly and in pairs from a hotel on the campus of the military academy at West Point, N.Y., to jog or stroll. Some attended an ecumenical worship service and some spoke briefly with bystanders about their 14 months of captivity in Iran.The two freed women stayed together as they talked with reporters at West Point. Elizabeth Ann Swift and Kathryn Koob had been enforced roommates since the Iranian militants placed them together last March. Today they walked jauntily and offered radiant smiles as they praised the American people. [New York Times] Decontrol of all oil prices is imminent, according to David Stockman, the Federal Budget Director-designate. A decision by the Reagan administration to lift the remaining price and allocation controls is likely to raise the price of gasoline and home heating oil by up to 10 cents a gallon within weeks. The controls had been scheduled to expire Sept. 30. [New York Times] Major cuts in many federal benefits are being prepared for Congress by the Reagan Administration, according to David Stockman, the new budget chief. He said the broad array of plans called for cutbacks in Medicaid and dairy price supports, but officials said they hoped to avoid unnecessary battles with Congress. [New York Times] Richard Kelly was convicted of bribery and conspiracy, becoming the sixth member or former member of the House to be found guilty of charges arising from the Abscam investigation of political corruption. The verdict against the former Republican Representative from Florida was reached by a federal court jury after more than six hours of deliberation. [New York Times] The televising of trials was upheld by the Supreme Court. The Justices ruled, 8 to 0, that television coverage does not automatically violate a criminal defendant's constitutional right to a fair trial even when he objects to the presence of the cameras. [New York Times] Taiwan seeks moves by Washington to meet Taipei's demands for improved ties, according to Taiwan spokesmen. Taipei particularly wants the Reagan administration to facilitate bilateral meetings that were blocked by the Carter administration.A proposed U.S. arms sale to Taiwan has raised the prospect of diplomatic, political and economic disputes, according to government and industry officials. The Reagan administration is coming under heavy pressure both at home and abroad to approve the sale to Taipei of a new fighter plane called the FX, but China has warned Washington to abandon the proposal. [New York Times] Leniency for opponents in Seoul who "repent" was pledged by President Chun Doo Hwan of South Korea. Mr. Chun, who is to meet President Reagan in Washington next week, said he saw "no differences of opinion or outlook" between the two countries. [New York Times] Primacy for the State Department in the formulation of foreign policy was sought urgently by Secretary of State Alexander Haig Jr., according to Reagan administration aides. They said Mr. Haig submitted a 20-page memorandum presenting ways to implement the request to President Reagan while he was still in his inaugural attire. Mr. Reagan, they said, deferred a response. [New York Times] Islamic help to end the Gulf war was sought by Secretary General Kurt Waldheim. He urged leaders of Islamic countries meeting in Saudi Arabia to aid the United Nations more vigorously in its peace efforts. High sources reported that a top-level Arab delegation would soon begin a new peacemaking mission in Teheran. [New York Times] Three more Israeli settlements in the occupied West Bank were approved by a parliamentary committee. The projects will be the seventh, eighth and ninth of the ten settlements that Prime Minister Begin has said would complete the program. [New York Times] Cool scientific contacts between Washington and Moscow have become the rule in the last year because of the Soviet intervention in Afghanistan and revulsion among American scientists over Moscow's treatment of Soviet dissidents. American scientists disagree over the effects of the change. [New York Times]

Stock Market Report

Dow Jones Industrial Average: 938.91 (-1.28, -0.14%)
S&P Composite: 129.84 (-0.39, -0.30%)
Arms Index: 1.07

	Issues	Volume*
Advances	564	11.94
Declines	898	20.28
Unchanged	416	3.16
Total Volume		35.38

* 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*
January 23, 1981	940.19	130.23	37.22
January 22, 1981	940.44	130.26	39.88
January 21, 1981	946.25	131.36	39.19
January 20, 1981	950.68	131.65	41.74
January 19, 1981	970.99	134.37	36.64
January 16, 1981	973.29	134.77	43.26
January 15, 1981	969.97	134.22	39.63
January 14, 1981	966.47	133.47	41.39
January 13, 1981	965.10	133.29	40.89
January 12, 1981	968.77	133.52	48.75