News stories from Wednesday December 2, 1981

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

A major shift in military spending was pressed by the Senate. By a vote of 90 to 4, it rebuffed President Reagan's plan to deploy MX missiles in existing silos, a key element in the administration's strategic weapons program. Instead, the Senate approved a measure that would divert $334 million from the silo system and earmark it for further research into alternative ways to base the giant missiles. [New York Times] A shift on voting rights was indicated by Howard Baker, the Senate majority leader. He said he hoped that the Senate would approve this month without revision a 10-year extension of the Voting Rights Act and avert long public hearings. The Republican of Tennessee also said he would defer until next year any debate on proposals to restrict abortions, in part because of divison among anti-abortion groups. [New York Times] A dispute between Richard Allen and White House officials over the financial disclosure form he submitted earlier this year came to light. Mr. Allen, who has taken a leave of absence from his post as President Reagan's national security adviser, maintains that the White House counsel's office told him he did not have to list the clients who paid fees of $5,000 or more yearly to the consulting firm he sold this year. [New York Times] Labor won a judicial victory. The Supreme Court ruled that employees do not lose the protection of federal labor laws simply because their jobs give them access to information their employers consider confidential. [New York Times] The President sought peace with labor at a White House meeting. Acknowledging that the administration had become "estranged" from organized labor, Mr. Reagan appealed to Lane Kirkland and other leaders of the A.F.L.-C.I.O. to "consider starting over" and establishing a new mechanism for consultation on major issues. Later, Mr. Kirkland said that the labor federation was prepared to cooperate, but, citing the "deepening recession," stressed that labor leaders would continue to oppose the President's economic program. [New York Times] Full Canadian independence from Britain is in prospect. After 18 months of national debate, the House of Commons in Ottawa gave final approval to a measure designed to give Canada a new constitution not controlled by Britain's Parliament. The measure now goes to the Senate, where approval is expected next week, and then to London for final action by Parliament. [New York Times] A Warsaw sit-in ended peacefully as armed policemen seized the firefighters' academy from about 300 cadets demanding more autonomy. The policemen staged a helicopter assault on the building and removed the demonstrators without bloodshed. As bystanders jeered, the cadets were driven off in buses and freed at rail stations. [New York Times] The new U.S.-Israeli strategic accord was assailed in an angry debate in Israel's Parliament. Opposition members charged that the agreement unnecessarily provoked Moscow, pushed Israel into commitments far beyond its defense requirements and freed Washington from providing Israel aid against the Arab nations. [New York Times] A military buildup in Nicaragua has been engineered by Cuba and the Soviet Union and poses a serious threat to peace in Central America, according to Reagan administration officials, who cite intelligence information as evidence. [New York Times] Improvement of U.S.-Nicaraguan ties may be discussed, according to Secretary of State Alexander Haig. He made the statement after meeting with Nicaragua's Foreign Minister in St. Lucia in the Caribbean, where they are attending a conference. [New York Times]

Stock Market Report

Dow Jones Industrial Average: 882.61 (-7.61, -0.85%)
S&P Composite: 124.69 (-1.41, -1.12%)
Arms Index: 1.44

	Issues	Volume*
Advances	482	9.28
Declines	1,059	29.39
Unchanged	439	5.84
Total Volume		44.51

* 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*
December 1, 1981	890.22	126.10	53.99
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