Publish date:

Friday, June 11, 1999

Markets sag at the close; Biogen set for 2-for-1 split; Tiger Management denies rumors of cash shortage.

Markets

The glass certainly seems to be half empty lately. Some rather unspectacular economic data (see below), along with one spectacular rumor (see below), led investors to send stocks lower today. Volume was light, again.

The

Dow Jones Industrial Average

fell 130.76 to 10,490.51; the

Nasdaq Composite Index

dropped 36.50 to 2,448.12; the

S&P 500

shed 9.15 to 1293.67; the small-cap

Russell 2000

lost 4.25 to 438.02; and

TheStreet.com Internet Sector

index dumped 19.80 to 550.28.

The big European indices finished higher, led by Germany's

Dax

and London's

FTSE

, each of which gained more than 1%. The Paris

CAC

closed barely positive.

Asian markets were mixed overnight, as Hong Kong's

Hang Seng

rose 153.55, or 1.2%, to 12,992.76, while Tokyo's

Nikkei

added 95.93 to 17,198.55.

More markets news and commentary is available in

TSC's

Markets section.

Companies

Biotechnology firm

Biogen

undefined

set plans for a 2-for-1 stock split.

Boeing

(BA) - Get Boeing Company Report

is selling its

Information Services

unit to research and engineering company

Science Applications International

. The companies didn't disclose the deal's terms.

General Motors Acceptance

, the finance arm of

General Motors

(GM) - Get General Motors Company (GM) Report

, is buying U.K.-based

Arriva's

auto fleet management business for about $826 million in cash and assumed debt.

Longbow

, a joint venture of

Lockheed Martin

(LMT) - Get Lockheed Martin Corporation (LMT) Report

and

Northrop Grumman

(NOC) - Get Northrop Grumman Corporation Report

, won a five-year contract, worth as much as $1.2 billion, to build missiles and missile equipment for the

U.S. Army

. Separately, Lockheed Martin is talking with French defense firm

Aerospatiale Matra

about developing military surveillance and refueling aircraft, according to

The Wall Street Journal

, which cited executives familiar with the discussions.

Tiger Management

, the notorious hedge fund run by

Julian Robertson

, denied a rumor that it doesn't have enough cash to meet investor redemptions, and that the

Fed

TheStreet Recommends

was meeting to try to save the fund. A company spokesman said, "Tiger could pay out its redemptions fourfold today." The Fed declined to comment.

More news on companies and stocks is available in

TSC's

Stock News section.

Tech

eBay

(EBAY) - Get eBay Inc. Report

went down last night for the second straight day, and is still inaccessible.

TSC

columnist

Jim Seymour

wrote about the auction site's technological sore spot -- and its strategic strengths -- in a

column this morning.

Software firm

Phone.com

(PHCM:Nasdaq) took off in its first day of trading today, gaining 24 1/8, or 150%, to 40 1/8.

The

Securities and Exchange Commission

has suspended trading in bulletin board stock

Net Command Tech

(NCDR:OTC BB), an obscure video conferencing firm. Net Command's shares this year have swelled from about a dollar to as high as 30. The agency is questioning the accuracy of a wide array of information Net Command has released publicly.

More tech news and commentary is available in

TSC's

Tech Stocks section.

General News

NATO

troops are camped along Macedonia's border awaiting orders to enter Kosovo, with the alliance saying that a "substantial force" would be in the province by tomorrow afternoon. Meanwhile, a convoy of up to 1,000 Russian troops moved into Serbia from Bosnia early today, and was heading toward Kosovo, according to the private

Beta

news agency. The presence of both NATO and Russian peacekeepers in Kosovo may prove problematic, as Russia has said that it does not want its troops under alliance command.

The

Labor Department

came out with its

producer price index

, which showed prices increasing 0.2% in May, matching estimates and down from the previous month's 0.5% pace. Excluding food and energy, producer prices rose 0.2%, 0.1 percentage point higher than economists' consensus and last month's number.

The

Census Bureau

released figures showing

retail sales

increasing 1% in May, 0.2 percentage point above expectations and up from last month's 0.1% clip. Excluding automobiles, sales increased 0.5% for the month, in line with expectations and up 0.1 percentage point from April.

Worm.ExploreZip

is the new email virus on the block. As with Melissa, the

FBI

said it is investigating its transmission as a possible crime.

International

BP Amoco

(BPA)

said yesterday that it plans to sell all of its Canadian oil assets by the end of the year.

Strengthening its position in the Japanese retail brokerage business, Japan's

Dai-Ichi Kangyo Bank

bought $842 million worth of

Kankaku Securities

stock to raise its stake in the financial services firm to about 52.1% from about 38%.

More international news and commentary is available in

TSC's

International section.

Elsewhere

What profit a team win game two of the

Stanley Cup

finals and loseth its pretty-boy star centerman? We'll see. The

Dallas Stars

last night beat the

Buffalo Sabres

4-2 to even the series at one game apiece. But a vicious check from Buffalo's Jay McKee knocked all-star

Mike Modano

out of the game with a wrist injury that may keep him out of Game 3, or even longer.

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