News stories from Friday August 13, 1982

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

The Federal Reserve's loan rate was cut again, the third time the nation's money manager reduced the rate it charges to banks and other financial institutions. The latest action cut the rate to 10½ percent from 11 percent, the lowest charge in nearly two years, and continues the Fed's efforts to lower interest rates and buttress the weak domestic economy. [New York Times] A $4 billion bid for Cities Service was made by the Occidental Petroleum Company. The Cities Service Company has been scrambling to find a merger partner since the Gulf Oil Corporation withdrew its offer a week ago. Analysts and stock market traders were delighted. They believe the new offer may save Wall Street investors hundreds of millions of dollars they feared they had lost when Gulf withdrew. [New York Times] The administration's lobbying drive for President Reagan's proposed three-year, $98.9 billion tax increase will be bolstered by a television speech by the President Monday night. He has also recorded two television commercials for a $400,000 broadcast campaign for the tax legislation that is being sponsored by the Republican National Committee. Mr. Reagan's aides said that the administration's lobbying so far had failed to raise sufficient support to insure passage of the tax legislation. [New York Times] The President's tax proposal received support from an unexpected source, Gov. Jerry Brown of California, a Democrat. In a debate with Mayor Pete Wilson of San Diego, who is Mr. Brown's opponent in the race for the United States Senate, Mr. Brown came out for the three-year tax increase sought by Mr. Reagan, while Mayor Wilson, a Republican, opposed it. [New York Times] Pop music has had a bad summer, the worst in recent history and some insiders in the industry are saying that it appears to be an end of era. Sales of recordings and concert tickets have been so poor that CBS Records is discharging 300 employees -- 15 percent of its professional staff -- including several vice presidents. CBS also announced it was reducing its regional branch offices from 20 to 10. Its retrenchment is among the most severe of the cutbacks that have swept the music industry. [New York Times] Debate on an aliens bill has been completed by the Senate and is ready for a final vote, which is scheduled for Tuesday. The bill would grant amnesty to millions of illegal aliens and establish criminal penalties for employers who continue to hire illegal aliens. [New York Times] Talks were resumed in Lebanon on the withdrawal of Palestine Liberation Organization from west Beirut. They broke up during the 11-hour Israeli bombardment of west Beirut. The P.L.O. leadership gave the special United States envoy, Philip Habib, a list of the guerrillas to be withdrawn and the names of the Arab countries willing to accept them. The cease-fire that went into effect at dusk Thursday was still holding firm on almost all fronts. [New York Times] Hope was still alive in Washington that a settlement in Lebanon was possible. President Reagan said that while "technicalities" remained unresolved in the negotiations to evacuate Palestinian guerrillas from west Beirut, there was "great reason for hope" that a settlement could be reached. United States officials expressed concern about the conduct of the Israeli Defense Minister, Ariel Sharon. One American official involved in the Beirut negotiations said there was growing concern in the Reagan administration that Mr. Sharon "was doing all he can to sabotage the negotiations." [New York Times] Ariel Sharon said he would accept an Israeli cabinet decision restricting his military actions as Defense Minister,. but he said the actions had been conducted in line with government policy. He made the remarks before the Parliament's Defense and Foreign Affairs Committee. The Israeli radio described the Defense Minister as assertive and clearly unrepentant. [New York Times] Polish police broke up a march in Gdansk by thousands of Solidarity supporters, and gatherings marking eight months of martial law were dispersed in three other major cities. The demonstrations were the largest since the nationwide rioting last May 3 but were less violent. [New York Times] The first serious rift in United States-Mexican relations since President Reagan took office has been caused by what senior Mexican officials say is the Reagan administration's effort to exploit Mexico's economic crisis and promote criticism of Mexico by news organizations. [New York Times]

Stock Market Report

Dow Jones Industrial Average: 788.05 (+11.13, +1.43%)
S&P Composite: 103.85 (+1.43, +1.40%)
Arms Index: 0.46

	Issues	Volume*
Advances	946	32.40
Declines	473	7.52
Unchanged	429	4.80
Total Volume		44.72

* 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*
August 12, 1982	776.92	102.42	50.04
August 11, 1982	777.21	102.60	49.04
August 10, 1982	779.30	102.84	52.65
August 9, 1982	780.35	103.08	54.56
August 6, 1982	784.34	103.71	48.65
August 5, 1982	795.85	105.16	54.69
August 4, 1982	803.46	106.14	53.44
August 3, 1982	816.40	107.83	60.48
August 2, 1982	822.11	108.98	53.48
July 30, 1982	808.60	107.09	39.27