News stories from Wednesday January 6, 1982

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

Increases in "use taxes," including those on alcohol, tobacco and gasoline, are being recommended by President Reagan's key economic advisers to help reduce deficits in the next several budgets well below $100 billion, administration officials said. [New York Times] Labor unions face major pressure this year as they negotiate contracts for about 4.5 million workers against a backdrop of high unemployment, continuing recession and industry demands for concessions. At the same time, employment in traditional industries is being reduced; new, non-union jobs are being created and production is being sent abroad. [New York Times] Patricia Hearst dropped her effort to win a new trial on the ground that her 1976 bank robbery conviction resulted from an inadequate defense by her attorneys, F. Lee Bailey and J. Albert Johnson. Until now, Miss Hearst contended that her defense was hobbled because of decisions made in the trial that favored Mr. Bailey's plan to write a book about the case. [New York Times] A truck driver was convicted of murdering 10 boys and young men and abandoning their bodies near freeways in Los Angeles County in 1979 and 1980. The defendant, William Bonin, was acquitted of slaying two other young men in the "freeway killings" case that has haunted the city's homosexual community. [New York Times] A Libya terrorist training project was linked with two senior C.I.A. officials. A lawyer representing Douglas Schlachter, who is identified by the government as the supervisor of the project in Libya, said that Mr. Schlachter had told federal prosecutors that the operation was endorsed and put to use by the two officials when it was begun in 1976. [New York Times] A $6.2 billion merger was set. The way was cleared by Chief Justice Warren Burger when he denied a request by the Mobil Corporation to block United States Steel's acquisition of the Marathon Oil Company. [New York Times] The Philadelphia Bulletin is for sale, its owner, the Charter Company, announced as the publisher said that its recent financial reports "do not augur well for the future." [New York Times] American isolation on sanctions against the Soviet Union was acknowledged by the Reagan administration. It said it would not press at next week's NATO meeting for a concerted program of sanctions but would be satisfied with a strong condemnation of Moscow's involvement in the crackdown in Poland. Washington's position was announced after a two-day visit by Chancellor Helmut Schmidt of West Germany, who opposes the sanctions. [New York Times] Major financial aid for Poland if Warsaw returns to the policies in effect before martial law is expected to be provided by Western Europe. Foreign Minister Hans-Dietrich Genscher spoke of the aid plan soon after returning to Bonn from the two-day conference in Washington. [New York Times] Clandestine resistance in Poland has been urged by two senior Solidarity leaders who have escaped arrest by the martial law authorities. The union leaders, in letters to backers, suggested the formation of underground strike committees and secret preparations for a national shutdown. [New York Times]

Stock Market Report

Dow Jones Industrial Average: 861.02 (-4.28, -0.49%)
S&P Composite: 119.18 (-0.87, -0.72%)
Arms Index: 0.99

	Issues	Volume*
Advances	464	13.75
Declines	1,047	30.78
Unchanged	392	6.98
Total Volume		51.51

* 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*
January 5, 1982	865.30	120.05	47.50
January 4, 1982	882.52	122.74	36.75
December 31, 1981	875.00	122.55	40.78
December 30, 1981	873.10	122.30	42.96
December 29, 1981	868.25	121.67	35.24
December 28, 1981	870.34	122.27	28.31
December 24, 1981	873.38	122.54	23.94
December 23, 1981	869.67	122.31	42.90
December 22, 1981	871.96	122.88	48.32
December 21, 1981	873.10	123.34	41.31