News stories from Wednesday February 18, 1981

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

A sweeping new economic program that would cut the size and drastically change the shape of programs enacted in the last 20 years was urged upon Congress by President Reagan. In a televised speech, he outlined a plan that he said would curb inflation and unemployment with budget cuts totaling $41.4 billion in 83 major programs and wide-ranging tax cuts.Alternative budget proposals were being drafted in both chambers of Congress even before President Reagan's address. The consensus on Capitol Hill was that public opinion would be a crucial element in the fate of Mr. Reagan's proposals. [New York Times] The military budget would rise from 24.1 percent of federal spending to 32.4 percent in the next three years under President Reagan's plans. In perhaps the largest shift planned in the nation's peacetime history, he proposed to increase military outlays slowly in the next two years, to jump them in the succeeding two years and to send them soaring in 1985 and 1986. [New York Times] Billions of dollars would be lost by New York City and other urban areas in anticipated aid for mass transit, food stamps and public housing under President Reagan's proposed budget cuts. A spokesman for the Metropolitan Transportation Authority said that the loss of subsidies could result in 15 percent fare increases on buses, subways and commuter railroads. [New York Times] Washington will abide by the terms of the accords with Iran for freeing the 52 hostages, the Reagan administration said, but it added that it would not have negotiated with Teheran to obtain their release. A spokesman said that "future acts of state-sponsored terrorism against the U.S. will meet swift and sure punishment." [New York Times] Peaceful reforms In El Salvador are firmly supported by Washington, the State Department declared. Responding to criticism that the Reagan administration has stressed only military aid against the Salvadoran leftist insurgents, the department said that it backed social and political changes, including elections in 1982-83. [New York Times] A meteor, not a nuclear test, was the source of a flash recorded by a satellite over a remote part of the earth on Dec. 16, Defense Department analysts have concluded. But they stuck by their contention that a flash recorded on Sept. 22, 1979, over the South Atlantic near South Africa appeared to have been a nuclear test. [New York Times] Richard Nixon returned to politics and transformed a fundraising dinner in Columbus, Ohio, for Republican state senators into a joyfully partisan rally hailing President Reagan. The former President was welcomed with standing ovations. [New York Times] A leveling off of use of illicit drugs by young Americans is indicated in a large government-sponsored survey of high school seniors. For the first time since the survey was begun in 1975, the number of seniors who said they had tried marijuana declined. [New York Times] Ten convicted conspirators were sentenced to prison terms of 55 to 90 years by a federal district judge in Chicago. The ten, who are suspected of being members of the Puerto Rican independence group F.A.L.N., were found guilty last week of conspiracy, robbery and other crimes. [New York Times] Allegations of mob influence over Thomas Gleason, the president of the International Longshoremen's Association, were made by a convicted swindler at a Senate hearing. Mr. Gleason denied the charges. [New York Times] Proposals to legalize casino gambling are foundering in the New York state legislature, according to key legislators and other state officials. Advocates of casinos are divided over how legalized gambling should be regulated, and there appears to be no strong public demand for casinos. [New York Times] The Pope celebrated the beatification of 16 martyrs, including a Filipino, who were slain in the 1630's. The Pontiff, on the second day of a visit to the Philippines, also spoke to the poor in one of Manila's biggest slums. [New York Times] Iran is being pushed toward anarchy and its independence is endangered by increasing street assaults carried out by Islamic extremists, according to a letter signed by 40 members of Parliament, including five former cabinet ministers. The letter indirectly accused the government of condoning the attacks. [New York Times] Poland resolved a 26-day student sit-in at the University of Lodz and was close to settling an even longer dispute with farmers in the city of Rzeszow. The agreement at Lodz provides for the registration of an independent student association that would not be subject to the direct control of the Communist Party. [New York Times]

Stock Market Report

Dow Jones Industrial Average: 947.10 (+7.42, +0.79%)
S&P Composite: 128.48 (+0.67, +0.52%)
Arms Index: 0.86

	Issues	Volume*
Advances	829	20.63
Declines	662	14.09
Unchanged	417	5.69
Total Volume		40.41

* 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*
February 17, 1981	939.68	127.81	37.94
February 13, 1981	931.57	126.98	33.36
February 12, 1981	936.60	127.48	34.71
February 11, 1981	942.49	128.24	37.79
February 10, 1981	948.63	129.24	40.81
February 9, 1981	947.18	129.27	38.32
February 6, 1981	952.30	130.60	45.82
February 5, 1981	946.76	129.63	45.31
February 4, 1981	941.98	128.59	45.53
February 3, 1981	941.38	128.46	45.95