News stories from Wednesday May 5, 1982

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

An accord on a federal budget plan was reached by the White House and Republican congressional leaders and was approved hours later by the Republican-dominated Senate Budget Committee. Over three years, the plan would increase taxes by $95 billion and reduce Social Security spending by $40 billion. The savings in Social Security spending would be decided by Congress. [New York Times] Progress on the "new federalism" proposed by President Reagan was reported by officials of the National Governors Association. They said they believed that had reached a tentative agreement with the White House on a framework for a realignment of federal and state responsibilities for welfare and Medicaid, but they cautioned that many details remained to be resolved. [New York Times] Easing of a key anti-pollution rule is sought by the Environmental Protection Agency, according to agency documents made public by several congressional Democrats. A new regulation drafted by the agency would substantially increase the amount of carbon monoxide permitted in the air. The gas, one of the major pollutants, can cause severe lung and heart problems. [New York Times] "Excessive" violence on television leads directly to aggression and violent behavior among children and teenagers, according to a government analysis of a decade's voluminous research on the behavioral effects on viewers. The study cited "overwhelming" scientific evidence for the conclusion. [New York Times] Card counters were upheld by the New Jersey Supreme Court, which ruled, 5-0, that Atlantic City casinos could not bar the skilled blackjack players who often beat the house by memorizing what cards have been played and which ones remain undealt. The court held that the Casino Control Commission had exclusive authority to set rules for casino games and who might play them. [New York Times] Britain is exploring new ideas to halt the battle for the Falklands, according to Foreign Secretary Francis Pym. Addressing an agitated House of Commons, Mr. Pym said that the ideas included an early cease-fire but that no truce was possible without a withdrawal of Argentine troops from the islands, a condition that Buenos Aires has repeatedly rejected unless it is coupled with recognition of Argentine sovereignty over the islands. Responding to a question, Mr. Pym said that one possibility was the creation of "a United Nations trusteeship" in the archipelago. [New York Times] Argentina devalued the peso by 17 percent as part of a series of economic moves designed to spur exports and help finance the war against Britain. Buenos Aires said that about 800 survivors had been rescued from the cruiser General Belgrano. [New York Times] Argentina has responded positively to the United Nations' peace proposals for the Falklands, according to Secretary General Javier Perez de Cuellar, who declined to provide details. The plan reportedly omits any mention of sovereignty. [New York Times] Parallel diplomatic efforts to halt the Falkland conflict were reported by sources in Washington. They said the United States and Peru were discussing new peace proposals with both Britain and Argentina. [New York Times] The naval engagements between Britain and Argentina have added urgency to an intense debate in Washington over the future of naval forces in an era of advanced torpedoes and guided missiles. The debate centers on the Reagan administration's program for naval expansion. [New York Times] Vice President Bush arrived in China to assure Peking's leaders that the Reagan administration wanted to ease the strain in American-Chinese relations caused by American military sales to Taiwan. Mr. Bush told correspondents that "we consider China an equal partner in world affairs." [New York Times] A Palestinian girl died in a Jerusalem hospital of gunshot wounds reportedly inflicted three days ago by an Israeli motorist during a clash in the West Bank. The death of the 14-year-old brought to 12 the number of Palestinian Arabs killed in violent demonstrations in the occupied territories in the last six weeks. [New York Times]

Stock Market Report

Dow Jones Industrial Average: 854.45 (0.00, 0.00%)
S&P Composite: 117.67 (+0.21, +0.18%)
Arms Index: 0.94

	Issues	Volume*
Advances	785	29.18
Declines	661	23.10
Unchanged	451	6.58
Total Volume		58.86

* 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*
May 4, 1982	854.45	117.46	58.72
May 3, 1982	849.03	116.81	46.48
April 30, 1982	848.35	116.44	48.03
April 29, 1982	844.94	116.13	51.33
April 28, 1982	852.64	117.26	50.52
April 27, 1982	857.50	118.00	56.48
April 26, 1982	865.58	119.26	60.50
April 23, 1982	862.16	118.64	71.85
April 22, 1982	853.12	117.19	64.46
April 21, 1982	843.42	115.72	57.81