News stories from Monday September 28, 1981

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

Stock prices plunged in frantic trading on foreign exchanges from Tokyo to London, but the day's action ended with a strong rally on the New York Stock Exchange. Specialists attributed the steep worldwide decline to an unusual degree of uncertainty about the economic outlook, especially over high interest rates and budget deficits in the United States. [New York Times] The President's once solid grip on public support seems to be loosening because of worries about the economy, and Mr. Reagan's speech Thursday calling for new budget reductions did little or nothing to reverse the slippage, according to the latest New York Times/CBS News Poll. It also showed that key population groups were becoming increasingly pessimistic about the President's ability to curb inflation and about their own economic prospects next year. [New York Times] The environmental agency's ability to perform the tasks mandated by Congress is in doubt, according to staff members. The Reagan administration seeks to slash the staff and operat-ing budget of the Environmental Protection Agency nearly in half over the next two fiscal years, at a time when the agency's workload is increasing rapidly because of new programs authorized by Congress. [New York Times] Speedy retribution for criminals and compulsory compensation for victims were pledged by President Reagan. Addressing the International Association of Chiefs of Police, Mr. Reagan called for key changes to make it easier to detain and convict offenders by denying them bail and by allowing prosecutors to use illegally seized evidence at trials. [New York Times] An unexpected plea of guilt in spying for the Soviet Union for 17 years was made by Joseph Helmich, a former Army warrant officer, at his federal trial in Jacksonville, Fla. In return, the government dropped three charges, but he faces a maximum penalty of life in prison. [New York Times] Insights into carbohydrate craving have prompted an experimental treatment to suppress the craving. The researchers say their findings call into question the wisdom of popular weight-loss diets that are high in protein and low in carbohydrates. [New York Times] The Times of London will shut down unless protesting workers retreat from demands for more pressmen and more pay, according to a warning issued by Rupert Murdoch, the publisher. Other newspaper unions charged angrily that the pressmen had not consulted them on the dispute that has idled the 196-year-old Times and The Sunday Times. [New York Times] The sale of Awacs planes to Saudi Arabia was pressed by Defense Secretary Caspar Weinberger. In Senate testimony, he contended that the transfer would contribute significantly to the security of all nations in the Middle East, including Israel. Meanwhile, Richard Murphy, the newly confirmed ambassador to Saudi Arabia, flew there to begin discussions on the sale. [New York Times] Saudi oil prices will remain moderate whether or not Congress rejects the sale of Awacs plans, according to Sheik Ahmed Yamani, Saudi Arabia's oil minister. He predicted that the prices would not outpace inflation through 1986. [New York Times] A second round of U.S.-Soviet talks were held as Secretary of State Alexander Haig met with Foreign Minister Andrei Gromyko in New York City. Discussions at the five-hour meeting were described by the State Department as "frank, businesslike and serious." As a result of the latest meeting and the talks last week, both sides agreed to meet again early next year. [New York Times] Poland's main dissident group, the Committee for Social Self-Defense, will disband because its leaders feel its purpose as a vehicle for liberalization has ended. The announcement was made at the Solidarity union's national convention by the man who founded the group in 1976. [New York Times]

Stock Market Report

Dow Jones Industrial Average: 842.56 (+18.55, +2.25%)
S&P Composite: 115.53 (+2.76, +2.45%)
Arms Index: 0.33

	Issues	Volume*
Advances	918	46.02
Declines	660	10.76
Unchanged	324	4.54
Total Volume		61.32

* 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*
September 25, 1981	824.01	112.77	54.39
September 24, 1981	835.14	115.01	48.88
September 23, 1981	840.94	115.65	52.69
September 22, 1981	845.70	116.68	46.81
September 21, 1981	846.56	117.24	44.56
September 18, 1981	836.19	116.25	47.34
September 17, 1981	840.09	117.15	48.29
September 16, 1981	851.60	118.87	43.62
September 15, 1981	858.35	119.77	38.58
September 14, 1981	866.15	120.66	34.04