News stories from Thursday May 20, 1982

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

A Democratic budget proposal that would repeal the 10 percent tax cut scheduled for July 1983 and provide a three-year tax increase of $78.3 billion more than the level endorsed by President Reagan and the Senate Budget Committee was rejected by the Republican-dominated Senate by a vote to 88 to 32. [New York Times] The Senate Judiciary Committee rejected the Reagan administration's proposals for major alterations of the Freedom of Information Act and voted unanimously to leave the law substantially intact. [New York Times] John W. Hinckley scores on a standard test given to him by a government psychologist less than a week after he shot President Reagan were "extraordinarily high" on "the scale of mental illness," according to the testimony of Dr. Ernst Prelinger, a defense psychologist. [New York Times] Donald J. Trump, the developer, was not entitled to a multimillion-dollar tax abatement for the 59-story office and condominium tower he is building on the site of the old Bonwit Teller store in midtown Manhattan, a state appeals court has ruled. Mr. Trump said he would appeal "basically as a matter of principle." [New York Times] Britain rejected an appeal from the United Nations for further negotiations on the Falkland Islands dispute, and the cabinet was said to authorize the British battle fleet in the South Atlantic to open a new assault. In rejecting the appeal, Prime Minister Margaret Thatcher told the House of Commons that Argentina had in effect turned down Britain's final proposals for a settlement and that "it is inconceivable that they would now come genuinely to accept" the ideas proposed Wednesday night by United Nations Secretary General Javier Perez de Cuellar. [New York Times] Argentina braced for a possible attack by Britain on the Falkland Islands, while Foreign Minister Nicanor Costa Mendez insisted that Argentina still considered the United Nations mediation effort to be alive. "Argentina is engaged in the mission of the Secretary General, and it continues to insist upon his mission," the Foreign Minister said at a news conference, apparently before learning that Secretary General Javier Perez de Cuellar said that his peace efforts had failed. [New York Times] The United States has supplies and equipment earmarked for transfer to British forces if they become bogged down in a long winter struggle for the Falkland Islands, Reagan administration officials said. In addition, the officials said, the United States has increased its intelligence support for British forces by furnishing technical information on American weapons that have been sold to Argentina, such as attack aircraft. [New York Times] Britain decided to strike at the main Argentine positions in the Falkland Islands, according to senior military sources, instead of continuing a series of hit-and-run raids. British tactics will be to strike hard and quickly after a sharp but not necessarily prolonged bombardment by Harrier planes and helicopter gunships and the 4.5-inch guns of the fleet. [New York Times] Secretary of State Alexander Haig was ready to try again to end the Falkland Islands conflict through diplomacy if Britain and Argentina asked him to do so, according to Reagan administration officials. [New York Times] The South Korean cabinet offered to resign in the wake of a financial scandal that has led to calls by opposition and church leaders for President Chun Doo Hwan's resignation. Mr. Chun is expected to change key ministers in the 27-member cabinet, but not all ministers. [New York Times]

Stock Market Report

Dow Jones Industrial Average: 832.48 (-3.42, -0.41%)
S&P Composite: 114.59 (-0.30, -0.26%)
Arms Index: 0.65

	Issues	Volume*
Advances	459	17.49
Declines	957	23.72
Unchanged	455	7.12
Total Volume		48.33

* 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 19, 1982	835.90	114.89	48.87
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