Arguably the biggest winner in the world of business and finance today was former
Because it sure wasn't the stock market, which rose early, fumbled and ended the day humbled. And forget about the bond market being a winner. Bonds stink.
As for Rubin,
announced today that he has joined its team -- and a rational person would also assume that he's probably going to be compensated reasonably well for his services. Citigroup gained 11/16 to 48 1/2, trading as high as 50 5/16 intraday.
wrote about the Rubin hiring in a
story this afternoon.
The Rubin news battled for attention in the financial media with the announced revamping of the
Dow Jones Industrial Average
, which, beginning Monday will welcome four new members -- including tech titans
. The other two additions to the Dow will be
Saying goodbye to the Dow industrials will be
Major stock proxies spent a good portion of the day in positive territory as the long bond held steady. But stocks faded with bonds in the afternoon in part on some hawkish Fedspeak and ahead of some key economic data later this week.
"I think the market just has a negative tone to it," said Jay Suskind, head of institutional equity trading at
. The trader pointed out that stocks were "still keying off the bond market," which is technically weak, "if not broken."
As for the aforementioned economic data, on Thursday advance
gross domestic product
Employment Cost Index
-- both for the third quarter -- are slated to be released.
Suskind said there would have to be some "unbelievable" economic news for the bond market to rally. He sees the Dow trading in a range from 10,000 to 10,500 going forward.
Nasdaq Composite Index
, which outperformed its peers throughout the day, and clung to positive ground until late in the day, couldn't manage to close higher. The Nasdaq Comp slipped 4.48, or 0.2%, to 2811.47, after trading as high as 2859.92 intraday.
The Dow fell 47.80, or 0.5%, to 10,302.13. The biggest loser in the gauge was -- brace yourself for a shocker -- Goodyear, soon to be gone from the Dow.
slumped 11.72, or 0.9%, to 1281.91.
was a notable S&P 500 star, gaining 4.8% after it posted earnings this morning that surpassed Wall Street's estimates.
shed 1.97, or 0.5%, to 415.79.
TheStreet.com Internet Sector
index slumped 8.79, or 1.2%, to 723.15.
Meanwhile, in the Treasury market, the 30-year Treasury bond weakened. The long bond was off 11/32 to 96 20/32, yielding 6.38%.
Retailers stumbled badly. The
S&P Retail Index
swooned 4%. Drug stocks didn't exactly put on a great show either. The
American Stock Exchange Pharmaceutical Index
Gold mining stocks were big losers as gold prices tumbled. The
Philadelphia Stock Exchange Gold and Silver Index
"We don't think the market has much potential on the upside," said Bruce Bittles, market strategist at
in Nashville, Tenn., due to the fact that valuations are so high and that the Fed is poised to raise interest rates for a third time this year. Bittles did say, however, that the Dow could rally to 10,600 in the short term, but not much past that.
Bittles said he's been disappointed by how the market has reacted to third-quarter earnings. The strategist pointed out that so far 85% of companies reporting earnings have met or beat expectations. However, he noted that the Dow and S&P 500 are trading at about the same place they were trading at the beginning of the month.
Of the Dow's revamp, Bittles said he thought "it's going to be a change in how people perceive the Dow," pointing out that the Dow has been seen as "stodgy." Bittles said that the additions make the Dow more indicative of what's going on in the economy.
New York Stock Exchange
trading, 878.4 million shares were exchanged while declining stocks beat advancers 1,875 to 1,159. On the
Nasdaq Stock Market
, 1.06 billion shares traded while losers beat winners 2,056 to 1,896. New 52-week lows beat new highs 301 to 37 on the Big Board and by 152 to 98 in over-the-counter trading.
Among other indices, the
Dow Jones Transportation Average
fell 41.39, or 1.4%, to 2829.20; the
Dow Jones Utility Average
rose 0.77, or 0.3%, to 295.24; while the
American Stock Exchange Composite Index
gave up 1.33, or 0.2%, to 789.89.
Elsewhere in North American equities, the
Toronto Stock Exchange 300
crept up 6.61 to 7064.88 and the
Mexican Stock Exchange IPC Index
edged up 3.38 to 5134.96.
For more discussion of the new Dow, don't miss our
TV show this weekend on
Fox News Channel
. This week's guest is Charles Carlson, manager of the
Dow 30 Value fund. The show airs Saturdays at 10 a.m. and 6 p.m. ET, and Sundays at 10 a.m. ET.
Tuesday's Company Report
Earnings estimates from First Call; earnings reported on a diluted basis unless otherwise specified. New highs and lows on a closing basis unless otherwise specified.
The stocks heading into the Dow Jones Industrial Average headed skyward for much of the session but ended mixed, with Microsoft unchanged at 92 3/8 (intraday peak: 95 1/4); Intel up 3/16 to 73 13/16 (peak: 74 5/8); Home Depot down 1 1/4 to 70 11/16 (peak: 74 1/2) and SBC up 1 5/16 to 45 9/16 (peak: 47).
Different story on the other side. Goodyear stumbled 3 15/16, or 8.3%, to 41 1/4 (intraday worst: 40 9/16) after it said it is disappointed to be cut from the Dow but said the deletion will not have a fundamental impact on its business. Elsewhere among the deleted stocks, Sears dropped 1 7/8, or 6.5%, to a four-year low of 27 (worst: 26 11/16); Chevron lost 2 to 88 (worst: 86 13/16); and Union Carbide, getting no help from an
upgrade to buy from hold, fell 1/2 to 59 (worst: 58 3/8).
Mergers, acquisitions and joint ventures
climbed 1/16 to 17 9/16 after it said it has upped its bid for
to $14 a share, in attempt to compete with XL Capital's cash offer. According to Capital Re, Ace's rival bid came after a Delaware court rejected an injunction to prevent talks between Capital Re and XL Capital. The court's decision allows Capital Re to take XL Capital's all-cash offer if Ace did not launch a bid "at least as favorable." Both bids see Capital Re worth $511 million, reflecting on its 36.5 million outstanding share. Shares of Capital Re bounced 1/2 to 14 1/16, while XL gained 1/2 to 47.
agreed to merge, creating a company with a market capitalization of $850 million. IPIX shareholders will get 1.369 shares of Bamboo.com for each IPIX share, with IPIX and Bamboo shareholders each owning about 50% of the combined company. Shares of Bamboo.com added 5/8 to 17, while Interactive Pictures mounted 1 1/8, or 5.2%, to 22 1/2.
Separately, each of the companies reported narrower-than-expected third-quarter losses. Bamboo.com reported a third-quarter loss of 63 cents a share, smaller than the two-analyst expectation of a 65-cent loss, but wider than a year-ago loss of 1 cent a share. Interactive Pictures reported a loss of 44 cents a share, narrower than the four-analyst estimated loss of 45 cents a share, and a year ago loss of 78 cents a share.
agreed to buy
for $41.125 a share in cash, or about $280 million. Watkins makes wireless communications equipment. Watkins-Johnson was soaring 6 1/8, or 19.3%, to 37 3/4.
Microsoft may invest billions over four years to develop and promote a home-game console, code-named X-Box, in an effort to compete with
forthcoming Playstation 2,
The Wall Street Journal
said. Microsoft was unchanged at 92 3/8, while Sony hopped 2 1/8 to 151.
will offer its Linux program. Red Hat soared 13 9/16, or 17.6%, to 90 5/8, while Intel gained 3.16 to 71 7/16.
Earnings/revenue reports and previews
slipped 1 5/8 to 55 1/2 after it posted third-quarter earnings of 65 cents a share, beating the seven-analyst estimate of 62 cents and the year-ago 54 cents.
Burlington Northern Santa Fe
popped 1/2 to 29 1/2 after it reported third-quarter earnings of 70 cents a share excluding items, beating the 11-analyst estimate of 67 cents and the year-ago 66 cents.
plummeted 7, or 15.7%, to 37 1/2 after it reported first-quarter earnings of 53 cents a share excluding items, in line with the 14-analyst estimate and up from the year-ago 43 cents including items.
fell 1 3/16 to 37 3/4 after it posted second-quarter earnings of 45 cents a share, beating the 12-analyst estimate by a penny and the year-ago 39 cents.
added 3/4 to 76 after it said third-quarter earnings beat expectations, rising 14%, and helped by strong sales of its Chrysler and Mercedes cars. The company earned $1.6 billion, or $1.65 a share, after adjustments for onetime charges and profits, compared with $1.41 billion or $1.45 a share, in the same period a year ago.
covered DaimlerChrysler's report in a
stumbled in early trading Tuesday after warning late Monday it expected a net loss of approximately 36 cents in the third quarter, due to charges related to a contract dispute.
Shares of Friede slid 3/8 to 9 7/16. The Jackson, Miss.-based company
warned in late September that its contract dispute with Norwegian firm
would lead to a charge. At that time, the extent of the charge was not known. Analysts polled by First Call/Thomson Financial expected Friede to earn 19 cents in the quarter.
said its purchase of
would not effect fiscal 2000 but would boost its fiscal 2001 results by 3 cents. The six-analyst estimate forecasts the company to post fiscal 2000 earnings of $1.55 and $1.76 for fiscal 2001. Shares of International Multifoods slipped 15/16 to 21 1/8.
skidded 5/8 to 15 after it reported a third-quarter loss of 8 cents a share, which includes a non-recurring gain. The results were narrower than the 10-analyst estimate of a 29-cent loss but matched the year-ago report, which included a gain from a sale of
Lucent hopped 2 7/8 to 62 3/4 after it reported
fourth-quarter earnings of 31 cents a share, beating the 29-analyst estimate of 29 cents and the year-ago 7 cents. The company said that excluding acquisition-related charges, profits rose to $972 million from $647 million a year earlier, helped by strong growth in sales of wireless, data and optical networking equipment.
Lucent also announced it would restructure into four core businesses in order to focus on the fastest-growing equipment markets, such as data and optical networking, wireless and semiconductors. The four business units, which will operate under one brand and be supported by Bell Labs technology are: Service Provider Networks, Enterprise Networks, NetCare Professional Services and Microelectronics and Communications Technologies.
bounced 1 1/4 to 30 9/16 after it posted third-quarter earning of 44 cents a share, in line with the 13-analyst estimate but down from the year-ago 46 cents.
gained 13/16 to 17 13/16 after it posted third-quarter earnings of $1.08 a share, beating the nine-analyst estimate of 97 cents and the year-ago 64 cents.
advanced 1 1/16, or 12.4%, to 9 5/8 after posted third-quarter earnings of 12 cents a share, beating the nine-analyst estimate by a penny but down from the year-ago 32 cents.
was unchanged at 20 1/2 after it reported third-quarter earnings of 66 cents a share, beating the 10-analyst estimate of 64 cents, and the year-ago 58 cents.
Thomas & Betts
tumbled 7/8 to 45 5/8 after it reported third-quarter earnings of 82 cents a share, in line with the five-analyst estimate and up from a year-ago loss of 66 cents.
retreated 1 1/4 to 34 1/4 after it reported third-quarter operating net of 18 cents a share, in line with the 21-analyst estimate and up from a year-ago 2 cents.
Offerings and stock actions
bounced 1 5/8 to 95 1/2 after it said it added $3.5 billion worth of stock to its existing repurchasing program. The addition comes after a recent decline in stock price. The company also said it set its regular quarterly dividend of 12 cents a share, or an annual 48 cents. Last week, IBM cautioned that its fourth-quarter 1999 and first-quarter fiscal 2000 profits could be dented by slow sales due to Y2K fears.
reported on the expanded buyback plan in a
Shares of Internet software maker
jumped 2 1/8, or 23.5%, to 11 1/8 in their trading debut.
upped its price target on
to 160 from 150. Shares of American Express were bouncing 1 3/8 to 144 3/4.
Salomon Smith Barney raised its rating on
to buy from neutral. ATMI advanced 2 5/8, or 11.7%, to 25 1/16.
Morgan Stanley Dean Witter
upped its 1999 earnings estimate on
to $2.18 a share from $2.13. AT&T shares fell 11/16 to 44.
sliced its price target for
to 75 from 80. Computer Sciences leaped 4 13/16, or 6.9%, to 64 3/8.
Morgan Stanley Dean Witter started
with an outperform rating. Digital Insight lost 3 3/4, or 11.3%, to 29 1/4.
Donaldson Lufkin & Jenrette
sliced its rating on
to market perform from buy. Hearst-Arygle edged down 1/16 to 22 15/16.
Morgan Stanley started
with an outperform rating and set a price target of 105. Internap popped 1 3/8 to 81 3/4.
said it rolled out coverage of
with a strong buy rating. Shares of Office Depot were unchanged at 11 5/8.
Credit Suisse First Boston
cut its rating on
Park Place Entertainment
to buy from strong buy. Park Place Entertainment skidded 1/4 to 13 1/2.
Salomon Smith Barney
initiated coverage of
with a buy/speculative rating and set a price target of 60. Radware shares slipped 5/16 to 40 3/4.
lowered its intermediate-term rating on
to neutral from accumulate. Semco Energy slid 3/16 to 14 5/8.
PaineWebber raised its price target on
to 120 from 80. VoiceStream shares nevertheless plummeted 5 9/16, or 6.1%, to 85 1/4, in reaction to poor results released last night.