News stories from Wednesday July 28, 1982

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

Caution about economic recovery was expressed by President Reagan as he warned that the recession would not end soon. Speaking at his evening news conference, the President said he believed that the economy would improve in the second half of the year, and he charged that congressional inaction on his proposed budget cuts had curbed the optimism needed for economic growth. [New York Times] A flexible allotment of military funds was defended by President Reagan. He said he felt bound to stay within the overall federal budget ceiling on which he agreed with Congress, but he said he must be free to allocate funds among the various programs as he deemed necessary. [New York Times] The two strategic arms accords signed by the United States and the Soviet Union were upheld by a House provision to bar funds for the development, testing, procurement or operation of any nuclear weapon that would undercut the agreements. [New York Times] A major cut in student loan funds is planned by the Department of Education. It intends to block further federal funds for loans to 528 colleges and other educational institutions where defaults in repaying direct student loans total 25 percent or more. [New York Times] Eased work rules for youngsters were sharply opposed by labor and education organizations at a House hearing. The Reagan administration's plan to expand the hours and types of work that 14 and 15 year olds may perform was assailed as an act of "insensitivity." Some members of Congress say they will press for a joint resolution to halt implementation of the relaxed regulations. [New York Times] James Watt apologized to a leaders of the Anti-Defamation League for his June 17 letter to Israeli Ambassador Moshe Ahrens, according to Nathan Perlmutter, national director of the organization. He quoted the Interior Secretary as saying he erred in warning that American support for Israel could be undermined if American Jewish groups tried to block administration efforts to develop new energy resources. [New York Times] The two Democratic aspirants for Governor of New York repeatedly questioned each other's character, motivation, ability and tactics as they debated for nearly two hours. Mayor Ed Koch accused Lt. Gov. Mario Cuomo of making "misstatements," and Mr. Cuomo accused the Mayor of "pandering" to voters by changing his positions. [New York Times] Guarded hope for peace in Lebanon was expressed by President Reagan. At his 12th presidential news conference, Mr. Reagan carefully avoided placing blame for the conflict on Israel and said that in some instances the Palestine Liberation Organization had been "the first to break the cease-fire." [New York Times] Israeli forces pummeled bunkers of Palestinian fighters and residential sections of west Beirut for the seventh successive day. The jets, cannons and gunboats continued the shelling from dawn to dusk. The Palestinians have constantly refortified their positions, and do not appear to be planning to leave in the near future. [New York Times] A framework has been reached between the United States and India aimed at resolving the dispute between the two nations over India's nuclear program, according to congressional and administration sources. Under the agreement, fuel for the United States-built atomic power plant at Tarapur would be provided to India by France instead of by the United States, according to the sources. In return, used fuel from the reactor would reportedly be under full international safeguards to prevent it from being used to make atomic weapons. [New York Times] An American initiative to Peking in the dispute over American arms sales to Taiwan was reported by Senator Barry Goldwater. The Arizona Republican said the United States had offered assurances that Taiwan would not receive any more or better arms of any type than it gets now. [New York Times]

Stock Market Report

Dow Jones Industrial Average: 811.83 (-10.94, -1.33%)
S&P Composite: 107.73 (-1.70, -1.55%)
Arms Index: 1.88

	Issues	Volume*
Advances	272	5.16
Declines	1,252	44.63
Unchanged	343	4.04
Total Volume		53.83

* 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*
July 27, 1982	822.77	109.43	45.73
July 26, 1982	825.44	110.36	37.73
July 23, 1982	830.57	111.17	47.28
July 22, 1982	832.00	111.47	53.86
July 21, 1982	832.19	111.42	66.77
July 20, 1982	833.43	111.54	61.05
July 19, 1982	826.10	110.73	53.03
July 16, 1982	828.67	111.07	58.77
July 15, 1982	827.34	110.47	61.08
July 14, 1982	828.39	110.44	58.03