News stories from Tuesday December 1, 1981

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

The investigation on Richard Allen will now focus on an inaccurate financial disclosure statement that Mr. Allen, President Reagan's national security adviser, has filed with the White House. The Justice Department said it had closed its inquiry into Mr. Allen's receipt of $1,000 from a Japanese magazine, adding that it had found no evidence of criminal wrongdoing and that there was thus no reason to appoint a special prosecutor in the matter. [New York Times] An eased stand on flight controllers may be taken by President Reagan. He still firmly opposes rehiring the 11,500 controllers who were dismissed in August for striking, but he told a group of Teamster leaders he might reconsider a three-year ban on giving them other government jobs. [New York Times] "New federalism" was denounced vigorously by key state and local officials at the annual conference of the National League of Cities. The speakers said that President Reagan was shifting responsibility over programs from Washington to state and local governments without the money needed to finance them. Gov. Richard Snelling of Vermont, a conservative Republican, warned that the program was leading the nation toward "an economic Bay of Pigs.""New federalism" was deplored by Mayor Edward Koch of New York City as "a sham and a shame" that threaten the well-being of American cities. Speaking at the meeting of the National League of Cities, the Mayor used such words as "folly" and "outrage" in describing Mr. Reagan's domestic program. [New York Times] The President's economic policy was also assailed by 14 Christian and Jewish leaders in the Baltimore area. In a letter to Mr. Reagan, they said they deplored reduced spending for social programs and increased spending for the military and added, "We condemn a defense policy that promotes misery at home." [New York Times] Votes on Social Security that reflect the Reagan administration's position were recorded at the White House Conference on Aging, at which the President paid a call and made a speech. A conference committee showed repeatedly a strong majority for refusal to strengthen the retirement system with general government revenue or to guarantee current contributors to the system that their benefits will not be reduced in the future. [New York Times] A report upholding William J. Casey, the Director of Central Intelligence, is to be issued tomorrow by the Senate intelligence committee, according to Senator Harrison Schmitt of New Mexico. The panel has found no basis for concluding that Mr. Casey was unfit to serve because of omissions in describing his business transactions before he took office. [New York Times] The survival rate for cancer patients has increased substantially, according to preliminary data reported by the National Cancer Institute. However, the significance of the apparent gains was questioned by some experts who say they will await the complete data and more detailed analysis. [New York Times] A confrontation in Poland accelerated. A police contingent surrounded a firefighters' academy as 300 cadets defied demands that they halt a sit-in. Students are striking at 70 institutions of higher learning to back demands for increased autonomy. [New York Times] All 178 people aboard were killed as a chartered Yugoslav DC-9 jetliner crashed into a mountain while approaching an airport in Corsica that pilots list as unsafe. [New York Times] The talks on reducing nuclear arms in Europe continued in Geneva as the United States and the Soviet Union held their first full-scale negotiating session. It was understood they both offered the divergent starting positions that West Germany has described as a "maximalist" start to long-term bargaining. [New York Times]

Stock Market Report

Dow Jones Industrial Average: 890.22 (+1.24, +0.14%)
S&P Composite: 126.10 (-0.25, -0.20%)
Arms Index: 0.97

	Issues	Volume*
Advances	688	20.48
Declines	850	24.53
Unchanged	424	8.97
Total Volume		53.98

* 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*
November 30, 1981	888.98	126.35	47.57
November 27, 1981	885.94	125.09	32.77
November 25, 1981	878.14	124.05	58.57
November 24, 1981	870.24	123.51	53.37
November 23, 1981	851.79	121.60	45.27
November 20, 1981	852.93	121.71	52.01
November 19, 1981	844.75	120.71	48.72
November 18, 1981	844.06	120.26	49.98
November 17, 1981	850.17	121.15	43.19
November 16, 1981	845.03	120.24	43.74