News stories from Wednesday September 16, 1981

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

A step-by-step approach to the MX missile's deployment and the development of other new weapons was suggested by Secretary of Defense Caspar Weinberger to President Reagan in the wake of the fight over the military budget, according to administration officials. The suggestion was made to assure the support of advocates of a stronger defense and to blunt opposition from those wanting to cut the military budget further. The administration still planned a package that would include the MX missile. [New York Times] Recipients of Social Security would be affected by a proposed one-time postponement of their cost-of-living raises now under consideration by President Reagan, administration officials said. Mr. Reagan was also said to be considering postponement of cost-of-living raises in civilian and military pay, food stamps and some other automatic benefit programs to prevent the federal budget deficit from growing beyond $42.5 billion. [New York Times] Congress was urged to cut spending further to shrink the budget deficit and bring down high interest rates by Paul Volcker, chairman of the Federal Reserve Bank, in testimony before the Senate Budget Committee. Mr. Volcker rejected suggestions that Congress raise taxes now to deal with the deficit, although he said that ultimately might be necessary. [New York Times] Severe restrictions on school busing for racial integration moved closer to passage when the Senate voted 61 to 36 to end a three-month filibuster against the bill. The vote clearly indicated that a majority of the Senate was ready to end busing as a means of achieving racially balanced schools. [New York Times] The farm bloc's unity was shattered when the Senate refused to kill an amendment that eliminated a peanut production and price support program favored by Southern senators. It was the first time in the memory of many that senators had fought each other over protection of commodities their states produce. [New York Times] Three Lutheran church groups may unite, it was announced. The proposed merger, which is expected to be approved by the church's 1982 conventions, would unite 4.5 million members of the American Lutheran Church, the Lutheran Church in America and the Association of Evangelical Lutheran Churches. [New York Times] Israel's steadfast opposition to the Reagan administration's proposed sale of five Awacs radar planes to Saudi Arabia continues to fuel the possibility that Congress might vote to block the sale, according to leaders for and against the deal. [New York Times] German terrorists planted two bombs on a rail spur used by trains carrying supplies in and out of a U.S. air base in Frankfurt. The incident was the fifth attempted attack on American personnel and installations in West Germany since Aug. 31. On Tuesday, an attempt was made on the life of Gen. Frederick Kroesen, commander of the United States Army in Europe. [New York Times] A nuclear detonation by Pakistan could cost it the $3.2 billion aid package it just agreed to accept from the United States, and its leaders understand this "without a doubt," a senior Reagan administration official said. Under Secretary of State James Buckley made his statements in testimony before the House Foreign Affairs Committee. [New York Times] The Solidarity union was accused, in the strongest attack so far by the Communist Party in Poland, of turning into a political opposition that was pushing the country toward a "new national tragedy." The party leadership charged that the union had broken year-old agreements that gave birth to the first independent trade union in the Soviet bloc. [New York Times]

Stock Market Report

Dow Jones Industrial Average: 851.60 (-6.75, -0.79%)
S&P Composite: 118.87 (-0.90, -0.75%)
Arms Index: 1.32

	Issues	Volume*
Advances	415	8.81
Declines	1,102	30.82
Unchanged	379	4.03
Total Volume		43.66

* 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*
September 15, 1981	858.35	119.77	38.58
September 14, 1981	866.15	120.66	34.04
September 11, 1981	872.81	121.61	42.16
September 10, 1981	862.44	120.14	47.40
September 9, 1981	853.68	118.40	43.90
September 8, 1981	851.12	117.98	47.33
September 4, 1981	861.68	120.07	42.75
September 3, 1981	867.01	121.24	41.72
September 2, 1981	884.23	123.49	37.57
September 1, 1981	882.71	123.02	45.11