News stories from Wednesday April 16, 1980

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

The bond market rebounded, staging its largest single-day recovery on record. The rally was caused by a widening conviction that the long-anticipated recession had begun. This should reduce demands for borrowed funds and also lessen inflationary expectations. The collapse of the credit markets last winter led to a recasting of the federal budget. [New York Times] A military spending cutback this year is being made by the Carter administration so that it can keep its pledge to increase Pentagon spending next year by 3 percent over the inflation rate. An accord to cut $82 million from current spending was disclosed in a Defense Department memorandum. [New York Times] A Congressman violated House rules by diverting campaign funds to his personal use and improperly accepting cash gifts from a businessman, the House Ethics Committee has concluded. The committee will decide within a week the severity of punishment it will recommend to the House against the Representative, Charles Wilson, Democrat of California. [New York Times] Unionists hailed Edward Kennedy as he assailed the labor policies of the Carter administration at a convention of the Pennsylvania Labor Federation. The federation is formally neutral in the Democratic presidential contest, but several hundred delegates repeatedly cheered and chanted during the speech by the Senator, who is seeking an upset victory in the state's presidential primary next Tuesday. [New York Times] Drug abuse among casino employees in Atlantic City has increased to "enormous proportions," according to Robert Martinez, the director of New Jersey's Division of Gaming Enforcement. He warned of a law-enforcement crackdown unless the casino companies offered counseling programs and drug users enrolled in them. [New York Times] Civil rights suits against municipalities by individuals were broadened by a Supreme Court decision. The Justices ruled 5 to 4 that, if a violation resulted from an official government policy, local governments could not use the defense that their employeees had acted in good faith or committed a violation unintentionally. [New York Times] A new Soviet bid for talks with Bonn was reported by a West German spokesman, who said that Chancellor Helmut Schmidt had been invited to Moscow early this summer to confer with Leonid Brezhnev, the Soviet leader. Mr. Schmidt is thought to be eager to accept the invitation, but the spokesman said that a decision would be made in the context of overall East-West relations. [New York Times] Soviet citizens are widely puzzled over the scheduled American boycott of the Moscow Olympics this summer. People from Moscow to Central Asia express surprise and skepticism when Americans tell them that athletes from the United States and possibly those from other countries will not compete because of the Soviet military intervention in Afghanistan. [New York Times] Pledges by Israel and Egypt to make a maximum effort to conclude an accord on Palestinian autonomy in Israeli-occupied territories by May 26 and to refer any unresolved issues to a special committee were announced by American officials. The agreement resulted from talks that President Carter concluded with Prime Minister Begin and those he held last week with President Sadat.A challenge to Prime Minister Begin was made by Israel's Defense Minister, Ezer Weizman, who called for early elections and said he was willing to become Prime Minister. [New York Times]

Stock Market Report

Dow Jones Industrial Average: 771.25 (-12.11, -1.55%)
S&P Composite: 101.54 (-1.09, -1.06%)
Arms Index: 1.39

	Issues	Volume*
Advances	747	13.76
Declines	862	22.13
Unchanged	327	3.84
Total Volume		39.73

* 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*
April 15, 1980	783.36	102.63	26.67
April 14, 1980	784.90	102.84	23.06
April 11, 1980	791.55	103.79	29.96
April 10, 1980	791.47	104.08	33.95
April 9, 1980	785.92	103.11	33.02
April 8, 1980	775.00	101.20	31.69
April 7, 1980	768.34	100.19	29.13
April 3, 1980	784.13	102.15	27.96
April 2, 1980	787.80	102.68	35.20
April 1, 1980	784.47	102.18	32.03