Monday, July 26, 1999

Stocks fall anew after last week's tumble; Revlon pursuing sale; U.S. planes bomb Iraqi installation.
Publish date:


Stocks continued their recent pullback today, with high-growth technology and Internet stocks once again getting the worst of it. The

Nasdaq Composite Index

fell 72.70 to 2619.70, and Internet Sector

index dumped 27.46 to 564.39. The

Dow Jones Industrial Average

shed 50.34 to 10,860.62; the

S&P 500

lost 9.18 to 1347.76; and the small-cap

Russell 2000

sank 5.51 to 442.87.

The 30-year Treasury bond fell 4/32 to 89 6/32, its yield rising to 6.039%.

The big European indices finished solidly lower, paced by Germany's

Xetra Dax

, which closed down about 2%.

Asian markets retreated overnight, as Hong Kong's

Hang Seng

fell 227.18, or 1.7%, to 12,866.52, while Tokyo's


slipped 43.10 to 17,491.34.

More markets news and commentary is available in


Markets section.


Dow component

American Express

(AXP) - Get Report

posted second-quarter earnings of $1.41 a share, beating the

First Call

14-analyst estimate of $1.40 and up from the year-ago $1.24.

Toronto-based pharmaceutical firm



set plans to acquire drug developer

Fuisz Technologies


for about $154 million in cash and stock.


, Italy's largest fast-food restaurant company, agreed to buy

Host Marriott Services


for about $530 million in cash, or $15.75 a share. Host Marriott's board approved the offer, which must be accepted by two-thirds of the company's shareholders.

Roberts Pharmaceutical


is being acquired by the U.K.'s

Shire Pharmaceuticals


in a transaction valued at close to $1 billion. Roberts shareholders will get 1.0427 to 1.2802 in Shire ADRs for each share of Roberts, and will hold 44% of the resulting company.


(REV) - Get Report

said it is "actively engaged in ongoing discussions" with potential buyers of part or all of the company.

The Financial Times

earlier today reported that personal effects maker


walked away from a $3 billion purchase of Revlon, which has made no comment on the story.

Dow component

Union Carbide


posted second-quarter earnings of 41 cents a share, a penny shy of the 16-analyst estimate and down from the year-ago 85 cents.

More news on companies and stocks is available in


Stock News section.


Online corporate filings provider

Edgar Online


set plans to buy smaller rival

for about 950,000 shares of Edgar Online stock. That's values at about $11.4 million.


(IBM) - Get Report

unveiled its

IBM Enterprise Storage Server

-- code-named "Shark" -- a new generation of enterprise disk storage systems.

Texas Instruments

(TXN) - Get Report

set plans to buy circuit maker



for about $1.2 billion in stock.


looked at TI's prospects in

story earlier today.

More tech news and commentary is available in


Tech Stocks section.

General News

U.S. war planes bombed a communications installation in Iraq's northern no-fly zone after coming under anti-aircraft fire.

Chinese Foreign Minister

Tang Jiaxuan

reiterated his country's dedication to its one-China policy at a conference in Singapore. Tang closed his speech with a Chinese proverb: "Prosperity and development are associated with unity, while war and conflict come with separation."




agreed to buy the cable TV business of

Cable & Wireless Communications


for nearly $10 billion in cash and stock.

France Telecom


backed the deal by investing $5.5 billion in NTL.

More international news and commentary is available in


International section.


CEO alert: Yesterday's

San Francisco Chronicle

interviewed ex-porn star

Marilyn Chambers

ahead of four "live performances" -- the paper doesn't make clear exactly what those performances will entail -- she'll give this week at the O'Farrell Theatre. The interview closes with Chambers, now 47, looking forward: "I'm really into computers," she said. "I can run a company to the utmost."