News stories from Monday August 2, 1982

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

John W. Hinckley should be hospitalized indefinitely because he is mentally ill and dangerous, according to a a report disclosed by knowledgeable sources. The recommendation, they said, was made by experts at a Washington hospital. Mr. Hinckley has been undergoing psychiatric evaluation there for six weeks since a jury found him not guilty by reason of insanity in the shooting of President Reagan and three other men. [New York Times] Big increases in military spending are being pressed by the Reagan administration despite vocal opposition in Congress, according to senior Pentagon officials. They said they were completing a 1984 military budget calling for $247 billion in outlays. That would represent an 11 percent rise, excluding inflation, over projected spending of $209 billion in the proposed 1983 military budget. [New York Times] Interest rates declined as banks across the nation cut their prime rate a half point to 15 percent, the lowest level in more than two years. The action pushed the Dow Jones industrial average up by 13.51 points. [New York Times] Federal workers who are unionists were urged to make certain that none of their donations to the $87 million Combined Federal Campaign go to groups that organized labor considers anti-union. The warning was issued because the Reagan administration has added the National Right-to-Work Legal Defense Fund to the list of "charities" eligible to share in the contributions that federal employees make to the fund. [New York Times] Race is the central issue in a Democratic primary campaign to be decided tomorrow in St. Louis. William Clay, Missouri's first and only black Representative, faces his toughest challenge in 14 years. His chief opponent is Allan Mueller, a white state Senator who has been viewed as a liberal but who differs with Mr. Clay on abortion and busing. [New York Times] Severe anxiety disorders that disrupt the lives of millions of adult Americans are attracting increased attention from federal health officials. The government has appeared reluctant to support research on the widespread disorders, but now there are signs it may be more generous. [New York Times] A strong warning on nuclear safety around the Indian Point (N.Y.) power plants was issued by the Nuclear Regulatory Commission. It said that if flaws in the emergency plans for the surrounding area are not corrected within four months, it will consider closing the Hudson Valley plants. [New York Times] President Reagan pressed Israel and the other combatants to halt the fighting in Lebanon as a prerequisite for the success of the American negotiating mission. The President, the White House announced, told the Israeli Foreign Minister, Yitzhak Shamir, in a somber 20-minute meeting that it is crucial to end the "constantly escalating violence" and to provide food and medical supplies to west Beirut. [New York Times] Israel moved tank reinforcements into all crossing points between east and west Beirut while inching its armor closer to the Palestinian camps on the city's outskirts. [New York Times] Britain defied President Reagan by ordering four companies not to comply with the administration's sanctions against providing American technology to the Soviet Union to help construct a natural gas pipeline from Siberia to Western Europe. The British action followed similar moves by France and Italy. [New York Times] Farmers hailed President Reagan as he told them he was encouraged that martial law might be easing in Poland and that he hoped that conditions there would improve enough for him to negotiate a long-term grain sale agreement with the Kremlin. But, speaking to 5,000 corn growers in Des Moines, he made clear he would not authorize the talks until conditions for the Poles improved greatly. [New York Times] An American reporter was expelled from Moscow for the first time in five years. The Foreign Ministry summoned Andrew Nagorski, the correspondent for Newsweek, and told him he must leave the country in "a reasonable time." [New York Times] A crackdown was imposed in Kenya after the abortive attempt Sunday to topple President Daniel arap Moi. The authorities closed the nation's two universities and deployed heavily-armed troops around key intersections in Nairobi, where they began a house-to-house search for rebels. [New York Times]

Stock Market Report

Dow Jones Industrial Average: 822.11 (+13.51, +1.67%)
S&P Composite: 108.98 (+1.89, +1.76%)
Arms Index: 0.45

	Issues	Volume*
Advances	1,103	42.94
Declines	365	6.39
Unchanged	392	4.13
Total Volume		53.46

* 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*
July 30, 1982	808.60	107.09	39.27
July 29, 1982	812.21	107.72	55.67
July 28, 1982	811.83	107.73	53.84
July 27, 1982	822.77	109.43	45.73
July 26, 1982	825.44	110.36	37.73
July 23, 1982	830.57	111.17	47.28
July 22, 1982	832.00	111.47	53.86
July 21, 1982	832.19	111.42	66.77
July 20, 1982	833.43	111.54	61.05
July 19, 1982	826.10	110.73	53.03