News stories from Wednesday May 19, 1982

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

A missile deployment scheme known as "Dense Pack" will be studied by the Defense Department to determine whether it would be feasible to use for the basing of MX intercontinental missiles. The plan calls for clustering 100 missiles in silos within an area of 10 to 15 square miles. [New York Times] The Chase Manhattan Bank agreed to pay off an estimated $270 million in overdue interest payments it was unable to collect from Drysdale Government Securities rather than face the prospect that several major Wall Street houses might collapse. As a result, Chase could go into the red for the second quarter. [New York Times] Corporate profits tell by 17.5 percent, nearly a record, in the first quarter of this year, the Commerce Department reported -- further evidence of the squeeze on companies from declining production and high interest rates. The gross national product, after adjustment for inflation, fell at an annual rate of 4.3 percent in the quarter, more than the preliminary 3.9 percent figure reported last month. [New York Times] A proposal to cut military spending by $13.9 billion over the next three years from the level endorsed by President Reagan and the Senate Budget Committee was rejected by the Senate by a vote of 53 to 44. [New York Times] A possible public outcry over felony prosecutions of young men who failed to register for the draft was raised at a private meeting of Reagan administration officials at the Pentagon last month, according to a transcript of the meeting. [New York Times] Excessive levels of lead appear to be in the blood of 4 percent of American preschool children, according to a survey of the National Center for Health Statistics. Lead poisoning can cause kidney and brain damage, anemia, seizures and death. [New York Times] A defense psychiatrist was lectured by the judge for insisting that he could not undergo cross-examination on his opinion that John W. Hinckley was insane when he shot President Reagan unless he were allowed to refer to X-rays of Mr. Hinckley's brain. The psychiatrist, Dr. David Bear, said the X-rays, called CAT scans, showed abnormalities that led to a diagnosis of schizophrenia. [New York Times] The bill to reinstate the death penalty in New York may be amended by its sponsors in an attempt to give the Assembly the votes it needs to override an expected veto by Governor Carey. The amendment that is under consideration by the bill's sponsors would allow juries to impose a sentence of life without parole as an alternative to capital punishment. [New York Times] An extension of peace talks was requested by the United Nations Secretary General, Javier Perez de Cuellar, in telephone calls to the leaders of Argentina and Britain as negotiations over the Falkland Islands were on the verge of collapse. Security Council members said they had the impression that he had won "perhaps 24 hours more." [New York Times] Britain's membership in the European Economic Community could be in doubt after the nine other members ignored a British veto, President Francois Mitterrand of France said. For the first time, a majority refused to allow the veto that all members had been assumed to enjoy over majority community decisions.The Common Market was threatened by British officials with retaliatory action after the nine other members ignored a British veto, in violation, the offficials said, of the organization's basis of governance. [New York Times] Prospects for a peaceful solution to the Falkland Islands dispute appeared dim, Prime Minister Margaret Thatcher of Britain said in assessing Argentina's prelminary response to Britain's final proposal.Britain does not want to negotiate, the Argentine government charged, expecting a breakdown of mediation efforts at the United Nations over the Falkland Islands crisis. [New York Times] Israel's ruling coalition survived a vote of no confidence in Parliament, 58 to 57. After the triumph of his Likud bloc, Prime Minister Menachem Begin was considered likely to press the coalition to propose a date in November for new elections, which his aides say he believes will strengthen his mandate. [New York Times]

Stock Market Report

Dow Jones Industrial Average: 835.90 (-4.95, -0.59%)
S&P Composite: 114.89 (-0.95, -0.82%)
Arms Index: 1.27

	Issues	Volume*
Advances	455	11.38
Declines	967	30.75
Unchanged	461	6.71
Total Volume		48.84

* 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 18, 1982	840.85	115.84	48.96
May 17, 1982	845.32	116.71	45.57
May 14, 1982	857.78	118.01	49.90
May 13, 1982	859.11	118.22	58.22
May 12, 1982	865.77	119.17	59.21
May 11, 1982	865.87	119.42	54.67
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