News stories from Wednesday May 28, 1980

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

Iran's new Parliament convened with President Abolhassan Bani-Sadr warning legislators that they "must act swiftly" to ease the frustrations of the people who, in some areas, are turning to armed conflict. Before considering the fate of the 53 American hostages, Parliament must choose a Prime Minister, a task that is expected to result in another battle between the President and the fundamentalist clerical forces of the Islamic Republican Party.Iran remains torn between opposing ideals as the people struggle with their nation's history and the aftermath of an uprising which was at once a revolution and a reaction. Internal problems are multiplying so rapidly that for weeks Teheran has been awash with rumors of a coup. [New York Times] The Federal Reserve dropped the rate that it charges to banks for loans to 12 percent from 13 percent. The move to reinforce the recent declines in interest rates appeared to reflect the effects of a rapidly unfolding recession rather than a switch to a policy of relaxing the tight limits the Federal Reserve has set on the growth in the supply of money and credit as an anti-inflationary measure. [New York Times] The President was called a 'hypocrite' by congressional Democratic leaders for arguing that a compromise $613.3 billion budget provided too much for military spending. Leaders contended that President Carter's proposed military budget, as now re-estimated, would involve $153.1 billion, which is $600 million less than the compromise budget to be voted on tomorrow by the House. They said that the President's recent support for a military pay raise proposal would add another $700 million to the military budget. [New York Times] The President needs only 28 delegates to guarantee his renomination, but Senator Edward Kennedy is insisting that he cannot be denied if he carries California and New Jersey in the final primaries next Tuesday. With 696 delegates at stake in the eight final Democratic primaries, Mr. Carter cannot fail to achieve an overall delegate majority. [New York Times] A second Congressman was indicted by a federal grand jury in Brooklyn on charges stemming from the Justice Department's undercover investigation of corruption by public officials. Representative Raymond Lederer of Philadelphia was charged with taking a $50,000 bribe from federal undercover agents.A Philadelphia official resigned his post as president of the City Council. George Schwartz, who will keep his seat on the council, tendered his resignation pending a trial that he says will vindicate him on federal charges stemming from the undercover Abscam investigation. [New York Times] No indictment of Hamilton Jordan is warranted by the evidence presented against him, according to the special federal prosecutor appointed to investigate allegations that the White House chief of staff used cocaine at a Manhattan discotheque in 1978. The prosecutor said in a report submitted to a panel of three federal judges that there was "insufficient evidence" for an indictment of Mr. Jordan. [New York Times] Vietnamese refugees have settled in Houston over the last five years in larger numbers than in any other major metropolitan area outside southern California. The 25,000 newcomers have established a pattern of success by often working two jobs at a time, which some people fear may bring the settlers into increasing conflict with native Texans who resent the influx into the job market. [New York Times] The government dumped chemicals, some of which may be radioactive, at the Love Canal and a nearby area in Niagara Falls, N.Y., according to a re-port by a State Assembly committee. The report, based on eyewitness testimony and documents found in the National Archives, alleges that the federal government also dumped toxic wastes in other states. [New York Times] A hunt has begun in South Korea by the armed forces for students and demonstrators who participated in the uprising in the city of Kwangju that was quelled after nine days. Soldiers set up roadblocks outside the city and along the expressway leading north toward Seoul to check the identities of people traveling in the region. [New York Times] Mideast dissidents have disappeared from public life in London as the scope of Middle Eastern violence has broadened there. A new wave of exported factional violence has hit London, with many of the estimated 100,000 Arab and Iranian exiles adopting an elusive way of life to evade "hit teams" from Libya, Iran and Iraq. [New York Times] A prominent Italian reporter was killed in Milan, apparently by the Red Brigades, a terrorist oranization. The murder of Walter Tobagi, a reporter for a newspaper in Milan, came a month after the Red Brigades announced a campaign against "the press of the regime." [New York Times]

Stock Market Report

Dow Jones Industrial Average: 860.32 (+2.56, +0.30%)
S&P Composite: 112.06 (+0.66, +0.59%)
Arms Index: 0.62

	Issues	Volume*
Advances	839	22.28
Declines	671	11.08
Unchanged	413	5.22
Total Volume		38.58

* 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 27, 1980	857.76	111.40	40.80
May 23, 1980	854.10	110.62	45.79
May 22, 1980	842.92	109.01	41.02
May 21, 1980	831.06	107.72	34.83
May 20, 1980	832.51	107.62	31.80
May 19, 1980	830.89	107.67	30.97
May 16, 1980	826.88	107.35	31.71
May 15, 1980	822.53	106.99	40.91
May 14, 1980	819.62	106.85	40.84
May 13, 1980	816.89	106.30	35.45