News stories from Tuesday May 11, 1982

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

A budget dispute among Republicans came to light as the party's House leaders rejected the plan endorsed by President Reagan and Senate Republican leaders, The representatives objected to the proposal to commit Congress to save $40 billion in the Social Security System before an announcement of recommendations by a study commission. House Republicans also termed a proposed $95 billion tax increase excessive and sought more cuts in military spending. [New York Times] $1 billion to aid the housing industry in the current fiscal year was approved in the House by a vote of 349 to 55, with all but 12 of the negative votes cast by Republicans. The emergency assistance would subsidize some buyers of homes built in the last year. [New York Times] Pessimism on the world economy was expressed by ministers representing the 24 major industrial democracies. They agreed that no early end of the global recession was in prospect and that a total of six million more people in their countries were likely to become jobless this year. [New York Times] The tax break Congress gave itself in December was denounced by three representatives at an Internal Revenue Service hearing. Meanwhile, Russell Long, the chief Democratic tax writer in the Senate, said he was sponsoring, and expected the Finance Committee to approve, a bill to abolish the special income tax deduction of $75 a day when members of Congress are in Washington. [New York Times] A big Postal Service profit was disclosed by Postmaster General William Bolger. In an interview he said that the agency had unexpectedly cleared more than $436 million in the first half of this fiscal year and would do even better in coming months. Last year, the agency won two price increases for first-class mail. [New York Times] John W. Hinckley's brother and sister testified that they agreed in early March 1981 that "John should be institutionalized" because he was increasingly depressed, behaving erratically, and his life was "totally out of control." But, on cross-examination by a federal prosecutor, Scott Hinckley conceded he had never seen his brother "in a frantic state" or in "a confused state" and that "the little time I have spent with him he has seemed coherent." [New York Times] Bias against women as inmates in the Kentucky state prison system has been charged in a class-action lawsuit being pressed by the women and the Justice Department. The case is being argued in a federal trial in Louisville. A ruling in the dispute could have a nationwide impact, leading to suits in other states, according to the women's attorneys. [New York Times] William Musto won re-election as Mayor of Union City, N.J., one day after he was sentenced to seven years in prison for sharing in hundreds of thousands of dollars in kickbacks. In Newark, Mayor Kenneth Gibson, who has been indicted on charges of creating a no-show job for a former city councilman, was forced into a runoff for a fourth term. [New York Times] British forces sank an Argentine ship, believed to be an oil tanker, in the narrow waterway between East and West Falkland Islands, according to a British correspondent at the scene. The Defense Ministry said the action showed that Britain had established total military superiority around the archipelago. There was no word on casualties. [New York Times] Progress toward a cease-fire in the Falkland dispute was reported by Argentine and British envoys at the United Nations. Secretary General Javier Perez de Cuellar, who is serving as a mediator, said the negotiations were "at a very delicate stage" and "at least two or three days" were needed to complete them. [New York Times] A shift in the foreign policy of the Reagan administration from conservative Republicanism toward the traditional center of the party has occurred over 16 months, according of officials in the White House and other departments. The officials characterize the new phase as less stridency toward Moscow and more attention toward European concerns. [New York Times]

Stock Market Report

Dow Jones Industrial Average: 865.87 (+4.95, +0.57%)
S&P Composite: 119.42 (+1.04, +0.88%)
Arms Index: 0.52

	Issues	Volume*
Advances	927	36.96
Declines	505	10.54
Unchanged	426	7.18
Total Volume		54.68

* 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*
May 10, 1982	860.92	118.38	46.30
May 7, 1982	869.20	119.47	67.18
May 6, 1982	863.20	118.68	67.54
May 5, 1982	854.45	117.67	58.86
May 4, 1982	854.45	117.46	58.72
May 3, 1982	849.03	116.81	46.48
April 30, 1982	848.35	116.44	48.03
April 29, 1982	844.94	116.13	51.33
April 28, 1982	852.64	117.26	50.52
April 27, 1982	857.50	118.00	56.48