December 29, 1982

Stock prices dropped yesterday after Monday's sharp advance despite a cut in interest rates by a major bank. The main casualties were some of the blue chips and technology issues. At the final bell, the Dow Jones industrial average was down 11.68 points, to 1,058.87. In the previous session, the Dow climbed 25.48 points, to 1,070.55, a new closing high, buoyed by signs of an upturn in housing starts and automobile sales.

President Reagan today recommissioned the World War II-vintage battleship New Jersey and asserted that his Administration had dramatically improved American military readiness after what he called a period of unilateral disarmament from 1970 to 1979. In an appeal for continued growth in military expenditures, Mr. Reagan said critics of his Administration were ''dead wrong'' in suggesting that the Pentagon was ''inherently wasteful and unconcerned about cost-cutting.'' Speaking from the deck of the 887-foot ship in the shadow of one of her nine 16-inch guns, Mr. Reagan declared: ''As the recommissioning of this ship demonstrates, we are re-arming with prudence, using existing assets to the fullest.'' ''However, even with maximum efficiency and an eye toward making every dollar count, we must not fool ourselves,'' he added. ''Providing an adequate defense is not cheap. The price of peace is always high. But considering the alternative, it's worth it.''

Mexico's new Government moved to soften the impact of the nationalization of the country's private banks last September by announcing plans to sell off 34 percent of the nationalized banks. The move is expected to stir criticism from leftist and nationalist groups that have pledged to fight any efforts by the one-month-old Government of President Miguel de la Madrid Hurtado to reverse or weaken the state takeover of the banking system. But the proposal, contained in a bill sent to Congress Monday night, does not contemplate returning shares to the former bank owners. It would offer them for purchase by Federal, state and municipal agencies, bank workers and bank users. No single shareholder would be allowed to own more than 1 percent of the stock in the banks.

The President's top economic advisers, in preparing next year's budget, have significantly scaled back their forecast for economic growth in 1983, Administration officials said today. They now predict slow growth in the first half of the year and as a result little reduction in the 10.8 percent unemployment rate by the end of 1983. The economic forecast is the first critical decision that must be made in assembling the fiscal year 1984 budget because it is the basis for all the projections of tax revenue, spending and the budget deficit. The President will submit the budget for the 1984 fiscal year, which begins Oct. 1, 1983, to Congress at the end of January.

Drew Lewis resigned today as Secretary of Transportation to return to private business as the head of one of the nation's largest cable television operations. Mr. Lewis said he would assume the job of chairman and chief executive officer of Warner Amex Cable Communications Inc., which is owned by Warner Communications and American Express. The company, which has been losing money, operates more than 140 cable television systems in 27 states and is constructing additional systems, including one in New York City. Mr. Lewis, who for months has been reported to be in line either for a higher assignment in the Administration or a return to private industry, said he informed President Reagan on Dec. 13 that he was departing Feb. 1, but added that he did not accept the job at Warner Amex until Monday. He said that he had decided to leave ''after much thought and careful consideration,'' confident that he had met his major objectives for the transportation system.