News stories from Thursday March 4, 1982

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

Senate G.O.P. leaders tried to mute their differences with President Reagan as they prepared budget alternatives that the President has said he does not want, The Republican legislators hope to have their budget recommendations ready for Mr. Reagan when he returns from his California ranch next week. [New York Times] Harrison Williams pleaded with his colleagues in the Senate not to expel him for the conduct that led to his conviction of federal bribery and conspiracy charges in the Abscam investigation. In making the four-hour personal appeal, the Democrat from New Jersey said he had been "falsely convicted" and asserted that the recommendation by the Senate Ethics Committee that he be expelled was "preposterous." [New York Times] The slump has struck California, which has long been regarded by many residents as recession-proof. Despite the state's diverse economy, the long-booming housing market has withered, nearly 9 percent of the workforce is unemployed, and Gov. Jerry Brown has said that the state faces a deepening crisis because the national recession has caused a $1 billion drop in projected tax revenue this fiscal year. [New York Times] Hundreds of nuclear safety problems may exist at the Diablo Canyon power plant in San Luis Obispo, Calif., according to officials of the Nuclear Regulatory Commission. They said that 111 errors or possible errors had been detected at the nuclear plant that could raise "significant" questions about the facility's ability to withstand an earthquake. [New York Times] A major increase in new TV stations was made possible by the Federal Communications Commission. It gave final approval for the licensing of 3,000 to 4,000 new stations across the nation within three years. The stations would operate at low power and reach viewers within a radius of only 10 to 15 miles, but they can be linked by satellite into networks, making it possible for the stations to attract national advertising. [New York Times] The new chairman of the Joint Chiefs of Staff is expected to be Gen. John Vessey, a combat veteran of World War II and the Korean conflict, who is now vice chief of staff of the Army. General Vessey was nominated to succeed Gen. David Jones, who is retiring July 1. [New York Times] The P.L.O. faces legal scrutiny in a Manhattan courtroom next month. The highly unusual proceeding was prompted by efforts by two major Jewish organizations to block a $30,000 bequest to the organization on the ground that the Palestinian group is a "terrorist organization" that should be barred from receiving the gift. The bequest was made in the will of Fred Sparks, a journalist. [New York Times] The administration was challenged to prove its contention that the Salvadoran insurgents were being directed by foreigners. Secretary of State Alexander Haig replied at a House hearing that a "a Nicaraguan military man" who was helping to run the guerrilla operation was captured today in El Salvador. [New York Times] A Nicaraguan leader denied that rebel forces in El Salvador were being financed, armed or directed by foreign advisers based in Nicaragua. Jaime Wheelock Roman, Nicaragua's Minister of Agriculture, charged that the Reagan administration was ignoring the basic causes of instability in Central America. [New York Times] An Israeli assault on Lebanon is feared by Reagan administration officials. They say that the Israeli government has been expressing justification for such an assault by issuing increasing charges of a Palestinian military buildup in Lebanon. [New York Times] French-Israeli differences over the Palestinian issue were expressed publicly but cordially in Jerusalem by President Franois Mitterand and Prime Minister Menachem Begin. Appearing together in Parliament, President Mitterrand urged the Israelis to consider the prospect of a Palestinian state, but Mr. Begin called the idea "a mortal danger" to Israel. [New York Times]

Stock Market Report

Dow Jones Industrial Average: 807.55 (-7.61, -0.93%)
S&P Composite: 109.88 (-1.04, -0.94%)
Arms Index: 1.03

	Issues	Volume*
Advances	490	21.47
Declines	1,034	46.75
Unchanged	363	6.12
Total Volume		74.34

* 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*
March 3, 1982	815.16	110.92	70.26
March 2, 1982	825.82	112.68	63.80
March 1, 1982	828.39	113.31	53.01
February 26, 1982	824.39	113.11	43.83
February 25, 1982	825.82	113.21	54.15
February 24, 1982	826.77	113.47	64.80
February 23, 1982	812.98	111.51	60.20
February 22, 1982	811.26	111.59	58.31
February 19, 1982	824.30	113.22	51.34
February 18, 1982	828.96	113.82	60.80