News stories from Monday August 23, 1982

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

The stock market extended its rally as trading volume surpassed the 100 million share mark for only the second time. In the strongest rally on record, the Dow Jones industrial average, buoyed by a burst in the final hour, soared 21.88 points, to 891.17, the highest closing since Dec. 10. [New York Times] Fraud in government purchasing of military equipment and services will be prosecuted by a special unit created by the Justice Department and the Pentagon, according to Defense Department officials. [New York Times] Strategy for protracted nuclear war approved by Defense Secretary Caspar Weinberger has generated considerable controversy since the plans were disclosed in May. The criticism has deeply disturbed Mr. Weinberger, who vigorously contends that the strategy has been misunderstood and is designed to deter war. [New York Times] New rules to reduce lead in gasoline were proposed by the Environmental Protection Agency, which said the proposals would be more effective than present rules. Environmental groups said the new proposals would aid public health, while some industry groups said they would impose unnecessary costs on consumers and require increased oil imports. [New York Times] American investors in "petrobonds" and foreign currency documents issued by Mexico have lost hundreds of millions of dollars because of that country's financial crisis, according to investment analysts in Mexico City. The loss results from the government's decision last week to convert both instruments at a so-called Mex-dollar exchange rate of 69.50 pesos. On the open market, the dollar is being traded at 95 to 100 pesos. [New York Times] Harry Truman was privately advised by Chief Justice Fred Vinson in 1952 that, as President, he had the legal authority to seize the nation's steel mills as an emergency measure in the Korean War, according to a book by Robert Donovan. The asserted extrajudicial advice proved to be incorrect and, in a 6-3 ruling, the Supreme Court held that President Truman had exceeded his constitutional powers. [New York Times] Laboratories are under attack by four high-level government investigations as well as by a philosophic challenge by the Reagan administration, budget reductions and competition from universities and industry. The powerful attacks against the national laboratories, which have long been acclaimed as a pinnacle of American science, have placed their future growth and vitality in doubt. [New York Times] Alfred Bloomingdale died of cancer at the age of 66. Mr. Bloomingdale was a key figure in the early growth of the credit card industry, the head of the Diners' Club for many years and was a member of President Reagan's kitchen cabinet. [New York Times] Advice on coping with old age and consequent diminished intellectual power was given by B.F. Skinner, the 78-year-old dean of behavioral psychology. The secret, he said, lies in creating a stimulating environment, devising little memory tricks, working fewer hours each day and giving the brain plenty of time to rest between intellectual exercises. [New York Times] Record spending for a primary was reported by Lewis Lehrman. He has spent $5.7 million -- $3.7 million of it provided by himself and his brother -- to finance his campaign for the Republican nomination for Governor of New York, and election day is still more than two months off. Mr. Lehrman is not only far outspending his Republican opponent, Paul Curran, but has spent three times as much as New Yoek City Mayor Ed Koch, who is seeking the Democratic nomination. The Mayor, in turn, is spending twice as much as his Democratic opponent, Lt. Gov. Mario Cuomo. [New York Times] The new President of Lebanon will be Bashir Gemayel, the leader of the rightist Christian militia. Residents of Christian-dominated east Beirut were jubilant. But in predominately Moslem west Beirut, the houses of three members of Parliament who took part in the electoral session were blown up. [New York Times] Arab and Palestinian officials in Damascus believe that the election of Bashir Gemayel as Lebanon's new President is likely to touch off new strife. Any new fighting between Moslems and Christians, it was said, would make it more difficult to withdraw Syrian and Israeli forces. [New York Times] Israel complained that Palestinian guerrillas leaving west Beirut were being allowed to violate a carefully negotiated withdrawal agreement through improper supervision. Officials in Jerusalem said there was no apparent registration of the guerrillas, that they were departing with weapons and equipment they should be leaving behind, and that women and children disguised as men were among those going. [New York Times] Poles were warned by the authorities that even minor protests would no longer be tolerated. The authorities hope to head off possible disorders next Tuesday, which is the second anniversary of the founding of the trade union Solidarity. [New York Times]

Stock Market Report

Dow Jones Industrial Average: 891.17 (+21.88, +2.52%)
S&P Composite: 116.11 (+3.09, +2.73%)
Arms Index: 0.47

	Issues	Volume*
Advances	1,352	93.15
Declines	349	11.40
Unchanged	297	5.76
Total Volume		110.31

* 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*
August 20, 1982	869.29	113.02	95.88
August 19, 1982	838.57	109.16	78.26
August 18, 1982	829.43	108.53	132.68
August 17, 1982	831.24	109.04	92.86
August 16, 1982	792.43	104.09	55.42
August 13, 1982	788.05	103.85	44.72
August 12, 1982	776.92	102.42	50.04
August 11, 1982	777.21	102.60	49.04
August 10, 1982	779.30	102.84	52.65
August 9, 1982	780.35	103.08	54.56