News stories from Thursday January 7, 1982

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

A shift on military registration was announced by the White House. In a reversal of the position President Reagan took in the election campaign, he announced he had decided to continue the signup of young men for a possible military draft. But he said the draft should be resumed only in the most severe national emergency. [New York Times] New proposals for tax increases worth $30 billion to $35 billion for 1984 were reviewed by President Reagan. Administration officials said that the package might yield $15 billion to $18 billion in the 1983 fiscal year, which begins Oct. 1. But they said the President remained uncommitted to any tax increases. [New York Times] Discord over the equal rights case has developed in the administration. The question is how much to shape the court appeal to suit the administration's opposition to the amendment, according to Justice Department sources. [New York Times] Division in the administration over how to deal with the Polish crisis was discerned by Chancellor Helmut Schmidt during his talks in Washington. Reporters traveling back to Bonn with the West German leader were also told that he questions whether the United States has thought out its strategy for dealing with a possible worsening of the situation. [New York Times] Auto makers' bids for concessions in union contract negotiations are generating deep concern and division among the workers in the ailing American industry. Some unionists, especially those with skills or enough seniority to be safe from layoffs, are firmly opposed to any "givebacks," but most workers seem to be waiting to learn what concessions are sought before taking a position. [New York Times] A restarting of the undamaged reactor at the Three Mile Island nuclear plant in Pennsylvania was postponed by a decision by a federal appeals court. The panel ruled, 2 to 1, that any restart must be preceded by a governmental assessment of how it might affect the psychological health of neighboring residents and the well-being of nearby communities. [New York Times] The Polish Primate spoke out against government demands for Polish workers to sign loyalty oaths and denounce their membership in Solidarity. The Primate, Archbishop Jozef Glemp, termed the demands "unethical" and said that any such declarations signed under coercion were "invalid." He was addressing 3,000 people at a mass in Warsaw. [New York Times] Indictments against Polish ex-leaders were announced on Warsaw television. Officials of both the Communist Party and government as well as industrial managers were charged with using their positions for personal gain. At the same time, the Warsaw radio announced many sentences against violators of martial law, most involving strike actions. [New York Times] A possible U.S.-Soviet summit is under consideration by the Reagan admins-tration, according to State Department officials. They said that administration officials, spurred by the Polish crisis, had been considering such a meeting between President Reagan and Leonid Brezhnev, but that the possibility had not been discussed with Soviet officials. [New York Times] Soviet bloc economies face a threat of damage from the 25 percent drop in Poland's industrial production over the last two years. The Polish crisis, Western experts say, is aggravating shortages in the Soviet Union and its European allies, weakening their economic links and undermining their creditworthiness in international financial markets. [New York Times] French military aid for Nicaragua was disclosed by Defense Minister Charles Hernu, who is visiting Washington. He said Pans planned to provide "nonoffensive" military equipment and to train 10 Nicaraguan pilots and 10 naval officers. Pentagon officials expressed anger at the arrangement with the leftist regime, which Washington opposes. [New York Times] Aid for Jewish settlers in Sinai who will have to vacate their homes, farms and businesses when the final strip is returned to Egypt in April was approved by Israel's cabinet. [New York Times]

Stock Market Report

Dow Jones Industrial Average: 861.78 (+0.76, +0.09%)
S&P Composite: 118.93 (-0.25, -0.21%)
Arms Index: 1.07

	Issues	Volume*
Advances	663	16.01
Declines	789	20.42
Unchanged	427	6.98
Total Volume		43.41

* 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 6, 1982	861.02	119.18	51.50
January 5, 1982	865.30	120.05	47.50
January 4, 1982	882.52	122.74	36.75
December 31, 1981	875.00	122.55	40.78
December 30, 1981	873.10	122.30	42.96
December 29, 1981	868.25	121.67	35.24
December 28, 1981	870.34	122.27	28.31
December 24, 1981	873.38	122.54	23.94
December 23, 1981	869.67	122.31	42.90
December 22, 1981	871.96	122.88	48.32