News stories from Monday August 3, 1981

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

Flight controllers struck illegally, but about 50 to 60 percent of the normal 14,200 daily airline flights around the country were able to operate under the guidance of supervisors and other non-strikers. President Reagan warned that the strikers would lose their jobs if they did not return to work within 48 hours. A federal judge ordered the controllers' union to return to work or face fines of up to $1 million a day, but the union chief vowed that the walkout would continue. [New York Times] A stern policy against strikes by federal employees was reflected at an emergency White House meeting. President Reagan initially favored a deadline of 7 A.M. tomorrow for dismissing flight controllers who remained on strike. But, according to administration officials, he was persuaded to announce a more lenient 48-hour deadline because his advisers believed that union leaders had not adequately warned the controllers that their jobs were at stake. [New York Times] Tens of thousands of travelers had to scramble for alternative transportation because of the flight controllers' walkout. The cancellation of half the flights also resulted in crowded planes and long delays at airports in New York and across the country. Business surged on bus and rail lines and at car rental agencies. [New York Times] The sweeping effects of the tax bill pressed by President Reagan and about to be signed by him were cited by tax and investment experts. They said that the mammoth measure would materially affect a wide range of investing strategies and individual financial planning. [New York Times] James Brady suffered a seizure in a side effect of the severe head injuries he received in the assassination attempt on President Reagan March 30. Doctors treated Mr. Brady at once, and the vital signs of the White House press secretary were said to be normal. A spokeman said that the "grand mal" seizures were not unexpected in such cases. [New York Times] Rules banning sex discrimination in the employment practices of schools and colleges receiving federal aid would be revoked under a proposal submitted to Attorney General William French Smith by the Department of Education. The proposed change would reverse the position taken consistently since 1975 by federal education officials and the Justice Department. [New York Times] Another major business merger was announced. Salomon Brothers, the nation's largest privately held investment banking firm, said it would be acquired by the Phibro Corporation, a giant trader of commodities. The merger is set for Oct. 1. [New York Times] A reputed crime figure was convicted of conspiracy by a federal grand jury in New Orleans. At his four-month trial, Carlos Marcella, who is said to be the head of organized crime in the Gulf Coast region, was acquitted of 11 other charges. [New York Times] The Philadelphia Bulletin may close, according to its publisher. The publisher, N. S. Hayden, said that The Bulletin, one of the nation's largest afternoon newspapers, would cease publication on Aug. 16 unless its unions agreed to make wage concessions totaling $4.8 million a year by that deadline. The financially troubled newspaper is 134 years old. [New York Times] Abolhassan Banl-Sadr may leave Paris and seek to enter Austria or Sweden to continue a campaign against the Moslem fundamentalist government of Iran. Facing expulsion from France for violating an agreement that prohibits him from speaking about politics, the former Iranian President said, "If I can't work here, I will leave." Sweden announced he would not be admitted. [New York Times] A Warsaw protest over food shortages turned into a confrontation between the Polish authorities and the Solidarity labor union. The police halted a column of buses and trucks bearing flags and placards in the center of the capital and the independent union's spokesman warned that if force was used to break up the demonstration, an immediate strike would be called. [New York Times] An accord on a Sinai peace force was signed by Egypt and Israel. The agreement establishes a 2,500-member international force in the peninsula to police the Egyptian-Israeli peace treaty. The United States will provide nearly half of the force. [New York Times] Bonn-Washington discord intensified as West German officials rejected United States criticism of Bonn's plan to reduce the growth rate of military spending next year. [New York Times]

Stock Market Report

Dow Jones Industrial Average: 946.25 (-6.09, -0.64%)
S&P Composite: 130.48 (-0.44, -0.34%)
Arms Index: 0.73

	Issues	Volume*
Advances	569	15.96
Declines	929	19.01
Unchanged	369	4.68
Total Volume		39.65

* 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 31, 1981	952.34	130.92	43.47
July 30, 1981	945.11	130.01	41.55
July 29, 1981	937.40	129.16	37.61
July 28, 1981	939.40	129.14	38.15
July 27, 1981	945.87	129.90	39.61
July 24, 1981	936.74	128.46	38.88
July 23, 1981	928.56	127.40	41.88
July 22, 1981	924.66	127.13	47.49
July 21, 1981	934.46	128.34	47.26
July 20, 1981	940.54	128.72	40.24