News stories from Monday October 5, 1981

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

The President's chief military adviser said that he preferred the mobile shuttle system for the deployment of the MX missile over the deployment in existing silos which Mr. Reagan has decided on. Gen. David Jones, chairman of the Joint Chiefs of Staff, testified at a hearing of the Senate Armed Services Committee. He said he was speaking only for himself and not for the four other military chiefs. [New York Times] Extension of the Voting Rights Act proceeded in the House, which turned back a series of attempts to weaken the law that has protected minority voting rights since 1965. Key provisions of the act will expire next August it they are not extended. It is considered almost certain that Congress will continue the act in some form. [New York Times] Much greater investigative powers that would be allowed American intelligence agencies under a proposal drafted by the Reagan administration has run into opposition from some members of the Senate Select Committee on Intelligence. According to congressional sources, the agents would be given broad authority to infilitrate domestic organizations and to review bank, medical, telephone and other private records. The proposal, prepared by an interagency group headed by the Central Intelligence Agency, is the administration's third effort to replace a 1978 executive order by President Carter that set the basic framework of for all American intelligence activites. [New York Times] The use of illegally seized evidence in some federal criminal cases was endorsed by the Justice Department, which said that it was considering a proposal requiring the courts to admit such evidence in all cases. The head of the department's Criminal Division told the Senate subcommittee on criminal law that the administration favors legislation requiring federal courts to admit illegally seized evidence "if the search or seizure was undertaken in a reasonable, good-faith belief that it was in conformity with the Fourth Amendment." [New York Times] Kuwait's bid for a U.S. company is expected to start government inquiries into any possible danger to the national interest. Kuwait has agreed to pay $2.5 billion in cash for the Santa Fe International Corporation of Alhambra, Calif., a contract driller and oil producer. A government inquiry is likely in view of the private estimates that the OPEC nations may have already invested $200 billion in the United States. Representative Benjamin Rosenthal, chairman of a House Commerce subcommittee, said that he would request that the Treasury Department "ask Kuwait to hold off any further action pending a United States government investigation." [New York Times] Israel assailed Saudi Arabia, accusing it of being a "major obstacle" to peace in the Middle East and of "a fanatic hatred of Jews and Israel." Foreign Minister Yitzhak Shamir made the charges in a 2,000-word address to the Foreign Policy Association in Manhattan four days after President Reagan suggested at a news conference that Israel might be interfering in American foreign policy by opposing the proposed sale of Awacs aircraft to Saudi Arabia. [New York Times] Joint command of the AWACS was ruled out by Secretary of State Alexander Haig. He told the Senate Foreign Relations Committee that a joint American-Saudi Arabian command of the surveillance planes "is simply not possible at this time." He made no reference to his testimony Thursday that "there will be an American presence on the aircraft well into the 1990's." [New York Times] France will freeze some prices and take other steps to try to reduce its annual inflation rate to 10 percent from 14 percent, thus enabling French industry to take full advantage of the franc's devaluation. Besides the price freeze, Finance Minister Jacques Delors announced plans to defer some public spending increases and to seek wage guidelines with unions. [New York Times] A clergyman was elected President in Iran, its third in 20 months. Hojatolislam Ali Khamenei is the first clergyman to become President and his election places all state institutions under the clergy's control. [New York Times]

Stock Market Report

Dow Jones Industrial Average: 859.87 (-0.86, -0.10%)
S&P Composite: 119.51 (+0.15, +0.13%)
Arms Index: 1.28

	Issues	Volume*
Advances	1,031	26.66
Declines	544	18.01
Unchanged	338	6.62
Total Volume		51.29

* 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*
October 2, 1981	860.73	119.36	54.57
October 1, 1981	852.26	117.08	41.59
September 30, 1981	849.96	116.18	40.70
September 29, 1981	847.89	115.94	49.79
September 28, 1981	842.56	115.53	61.32
September 25, 1981	824.01	112.77	54.39
September 24, 1981	835.14	115.01	48.88
September 23, 1981	840.94	115.65	52.69
September 22, 1981	845.70	116.68	46.81
September 21, 1981	846.56	117.24	44.56