News stories from Monday June 22, 1981

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

Flight controllers called off a strike as the union and the government reached tentative agreement on a new contract several hours before the national walkout was to begin. The government reported that the daily schedule of 14,200 airline flights was nearly normal. The head of the union predicted that members would ratify the accord within three weeks. [New York Times] A Senate budget accord was reached by Republican and Democratic leaders. They agreed to remove dozens of provisions that critics have assailed as extraneous from a package of $39.6 billion in reductions in a bill that reached the floor. But the leaders failed to agree on the deletion of a provision that would deny federal housing aid to municipalities with rent control. [New York Times] A tax relief bill was pressed by the Senate Finance Committee. It approved a cut to 50 percent from 70 percent in the maximum tax rate that individuals pay on investment income and a major easing of inheritance taxes. It also approved creation of a new tax-exempt savings certificate that thrift institutions could sell. [New York Times] The cost of Medicaid is soaring and its eligibility standards are inequitable, according to the Congressional Budget Office. It estimated that the cost of Medicaid, which totaled $1.5 billion in 1967, might rise to $29 billion by 1986. The Reagan administration wants to curtail the program sharply. [New York Times] The police gained power in searches from a 6-to-3 decision by the Supreme Court. The Justices ruled that a warrant to search a home for contraband automatically grants the police the authority to detain temporarily anyone found in the home. [New York Times] Seachers found no sign of life after making their way to the area on Mount Rainier where 11 climbers were buried by ice and snow on Sunday. The searchers had been stalled earlier in the day by mist and high winds that whipped new-fallen snow around the face of the mountain. Virtually no hope was held for the 11 climbers. [New York Times] The accused slayer of John Lennon, Mark David Chapman, pleaded guilty to killing the former Beatle outside his Manhattan apartment building on Dec. 8. Mr. Chapman, who made the plea against his lawyer's advice in a closed proceeding, is to be sentenced on Aug. 24. He faces a maximum term of 20 years to life in prison. [New York Times] The plight of casino gambling after three years in Atlantic City is worsening. Most of the city's casinos lost money in the first quarter of 1981, and executives expect profits to be scant through the year. Crime and inflation have soared, and much of the resort remains an urban wasteland. [New York Times] Abolhassan Bani-Sadr was removed as President of Iran by Ayatollah Khomeini one day after Parliament determined that Mr. Bani-Sadr was incompetent. He has not been seen in public for nearly two weeks. [New York Times] American concern over Iraqi plans to manufacture nuclear weapons was ex-pressed in a document given to Prime Minister Menachem Begin in January by the United States Ambassdor to Israel, according to a knowledgeable Israeli official. Mr. Begin was reported to have informed a parliamentary committee about the document, which was said to have been based on American intelligence reports. [New York Times] A delay in arms negotiations was indicated by Eugene Rostow, President Reagan's nominee to head the Arms Control and Disarmament Agency. Mr. Rostow told a Senate hearing that the administration would probably not be ready to begin formal talks with Moscow on limiting strategic arms until March 1982. [New York Times] Aid to European terrorist groups has been provided directly by Palestinian groups and radical Arab nations, according to Western European officials. They are divided and equivocal on the question of the Soviet Union's possible role in terrorism. [New York Times] Major upsets at Wimbledon marked the rousing first round of the 95th lawn tennis championships in England. Relatively unknown players defeated Ivan Lendl, Victor Pecci and Yannick Noah. [New York Times]

Stock Market Report

Dow Jones Industrial Average: 994.20 (-1.99, -0.20%)
S&P Composite: 131.95 (-0.32, -0.24%)
Arms Index: 0.96

	Issues	Volume*
Advances	709	17.54
Declines	820	19.51
Unchanged	404	4.74
Total Volume		41.79

* 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 19, 1981	996.19	132.27	46.42
June 18, 1981	995.15	131.64	48.40
June 17, 1981	1006.56	133.32	55.47
June 16, 1981	1003.33	132.15	57.77
June 15, 1981	1011.99	133.61	63.34
June 12, 1981	1006.28	133.49	60.79
June 11, 1981	1007.42	133.75	59.53
June 10, 1981	993.88	132.32	53.20
June 9, 1981	994.44	131.97	44.61
June 8, 1981	995.64	132.24	41.57