LEAD: THE people of central Newark have a dream: a big, modern supermarket for their neighborhood.

An Inner City Asks For a Supermarket

LEAD: These are times that try even the most firmly anchored stock market strategies. An air of unreality pervades the giddy rises of the last two weeks, leaving professional strategists delighted, but flinching at the thought that just at the moment they throw caution to the wind the market could dive.

TOP STRATEGISTS HEDGING BETS

LEAD: Iranian warships in the Persian Gulf are using Italian-made Sea Killer missiles against oil tankers in night attacks for the first time, according to United States intelligence officials.

IRANIAN WARSHIPS NOW USING MISSILES FOR NIGHT ATTACKS

LEAD: Governor Cuomo will propose building two new state prisons, to accommodate a total of 1,400 inmates, in the budget plan he will present Tuesday, law-enforcement officials said today.

CUOMO BUDGET IS EXPECTED TO CALL FOR 2 NEW PRISONS

LEAD: Federal drug investigators uncovered evidence last fall that the American flight crews covertly ferrying arms to the Nicaraguan rebels were smuggling cocaine and other drugs on their return trips to the United States, Administration officials said today.

CONTRA ARMS CREWS SAID TO SMUGGLE DRUGS

LEAD: Salomon Inc., one of the nation's major investment banking houses, said yesterday that it expected its fourth-quarter earnings to fall about 40 percent, to $80 million, from $132 million in the comparable period in 1985.

SALOMON EXPECTS DROP IN 4TH-QUARTER EARNINGS

LEAD: WOMEN who choose to become surrogate mothers have motivations ranging from selflessness to egocentricity, from guilt to joy, according to the handful of researchers who have studied them.

MOTIVATIONS OF SURROGATE MOTHERS

LEAD: O'Connor's Trip Reassessed  Jewish leaders met for three hours with John Cardinal O'Connor and reconsidered their criticism of his trip to the Middle East. Page B1.  New Head of Knopf Named  Ajai Singh Mehta, the director of Pan Books in London, will succeed Robert A. Gottlieb as president and editor in chief of Alfred A.

INSIDE

LEAD: The small investor is coming back. Tempted by a bull market streak that is verging on a new record, Wall Street's retail customers are stepping out on their own to buy stocks at a faster clip than they have for several years.

MARKET LURING SMALL BUYERS

LEAD: About 2,800 nonteaching employees at Rutgers University walked off the job today, disrupting the first day of spring classes for about 48,500 students on three campuses.

CLASSES DISRUPTED AS EMPLOYEES STRIKE AT 3 RUTGERS CAMPUSES

LEAD: The members of the University Club, the largest all-male club in New York City, have voted not to comply with a city law requiring admission of women as members.

UNIVERSITY CLUB VOTES TO KEEP WOMEN OUT

LEAD: Dennis Conner, who lost the America's Cup to Australia in 1983, got his chance to bring yachting's most prestigious trophy back to the United States when he defeated New Zealand today in the challenger's final.

U.S. REACHES FINAL IN AMERICA'S CUP

LEAD: The stock market charged ahead yesterday to its 12th consecutive day of a feverish rally.

DOW RISES BY 25.87, TO 2,102.50

LEAD: In the wake of a tentative agreement between the United Steelworkers and the USX Corporation, industry analysts are widely predicting that steel prices will decline by up to 5 percent once the nation's largest steelmaker resumes production in its idled plants.

USX-LED PRICE CUT EXPECTED

LEAD: At the end of a day when the dollar plunged again, the Treasury Department said tonight that Japan's Finance Minister would fly to Washington to meet with Treasury Secretary James A. Baker 3d on Wednesday.

JAPAN MINISTER RUSHING TO U.S. ON DOLLAR'S FALL

LEAD: ''Landslides were numerous and precipices fell thundering into the sea. The earth rent in a thousand places; fissures opened from one inch to six, eight and ten as unexpected breadth. The streets and fields of Hilo cracked, and seams opened all around us, where we had supposed that volcanic forces had long ago left their final traces.

HAWAII'S IMPOSING VOLCANOES: STILL POWERFUL BUT LESS DEADLY

LEAD: Negotiators for the Long Island Rail Road and 11 unions met yesterday for the first time since the line was struck, but any optimism about an early end to the walkout soon faded.

SERIOUS COMMUTER TIE-UPS FEARED

LEAD: The dollar was battered again yesterday in foreign-exchange markets, closing well below Friday's levels in spite of new signs that West Germany and Japan might be about to cut their interest rates.

DOLLAR'S PLUNGE UNCHECKED

LEAD: Mikhail Baryshnikov, the Russian ballet star whose defection in 1974 stunned the dance world, has been invited to return to the Soviet Union to dance as a guest at the Bolshoi Theater in Moscow, the artistic director of the Bolshoi Ballet said here yesterday.

BARYSHNIKOV IS INVITED BY BOLSHOI TO DANCE AGAIN IN SOVIET UNION

LEAD: Employers across the country will have to verify the citizenship status of all new employees, Americans and aliens, within 24 hours after they are hired, under rules drawn up by the Immigration and Naturalization Service.

IMMIGRATION RULES TO ASK NEW PROOF FROM JOB SEEKERS

LEAD: HALF a century after the discovery of the baffling, rare stuff known as antimatter, scientists are beginning to collect it in minuscule amounts, creating a wave of excitement around the world as they explore its nature and applications and redouble their efforts to find it in the heavens.

SEARCH FOR ANTIMATTER IS SHOWING RESULTS

LEAD: After meeting yesterday for nearly three hours with John Cardinal O'Connor, Jewish leaders changed their critical assessment of his visit to the Middle East and said the trip represented ''a helpful contribution toward greater understanding'' between Catholics and Jews.

O'CONNOR AND JEWISH LEADERS MEET AND RESOLVE DIFFERENCES

LEAD: A rebellious air force general, freed from custody in exchange for kidnappers' release of Ecuador's President, denied today from hiding that he had directed the hostage-taking and said he hoped to campaign for the presidency next year.

ECUADOR GENERAL DENIES ROLE IN TAKING PRESIDENT HOSTAGE

LEAD: William R. Hewlett, who founded the Hewlett-Packard Company with David Packard in 1939, will retire as vice chairman effective Feb. 24, the company said yesterday. Mr. Hewlett, 73 years old, is best known for his innovative engineering and people-oriented style of management.

Hewlett Co-founder Retiring From Post

LEAD: Last week the United States Supreme Court ruled that states could require employers to grant job protection to workers disabled by pregnancy. It was a ruling of major importance and has been hailed by women and labor groups as a big step toward protecting ''family rights.''

Talking Businesswith Rep. Schroeder of Colorado; 'Family Rights' For Employees

Evan Thomas Peters is an American actor. He made his acting debut in the 2004 drama film Clipping Adam and starred in the ABC science fiction series Invasion from 2005 to 2006. Peters gained wide recognition for playing multiple roles over ten seasons in Ryan Murphy's FX anthology series American Horror Story, from 2011 to 2021.

January 20, 1987

Headlines from January 20, 1987

An Inner City Asks For a Supermarket

TOP STRATEGISTS HEDGING BETS

IRANIAN WARSHIPS NOW USING MISSILES FOR NIGHT ATTACKS

CUOMO BUDGET IS EXPECTED TO CALL FOR 2 NEW PRISONS

CONTRA ARMS CREWS SAID TO SMUGGLE DRUGS

Billboard 200

Slippery When Wet

Bruce Springsteen & The E Street Band 1975-1985

Third Stage

The Way It Is

Different Light

Notable Births

Historical Context for January 20, 1987