Publish date:

Monday, June 28, 1999

Indices gain new vim and vigor in late afternoon trading; Olivetti's brass takes over at Telecom Italia; E-Loan's IPO price range goes up.


Major indices continued to rally into the afternoon's home stretch, with an intraday lurch downward turning back into across-the-board outperformance. The

Dow Jones Industrial Average

and the

S&P 500

remained hot, joined by a resurgent

Nasdaq Composite Index

and Internet Sector


Among less-than-major indices, the

Dow Jones Transportation Average

remained the standout, lately up 2.3% behind





(FDX) - Get FedEx Corporation Report


The big European indices finished mixed, with London's


down 0.5%, the Paris


up 1.1% and Germany's

Xetra Dax

also up 1.1%.

Asian markets improved overnight, as Tokyo's


rose 174.06, or 1%, to 17,610.58. Hong Kong's

Hang Seng

moved up 55.78, or 0.4%, to 13,840.29.

More markets news and commentary is available in


Markets section.



(AVT) - Get Avnet, Inc. Report

is acquiring

Marshall Industries


for roughly $648 million.

Bear Stearns


today paid a $5 million fine and $20 million in restitution to settle a

Securities and Exchange Commission

investigation of its relationship with defunct and indicted correspondent firm,

A.R. Baron

, according to a filing today. Bear said the fine won't have any material effect on its business or financial condition.

Goldman Sachs

(GS) - Get Goldman Sachs Group, Inc. (GS) Report

is pondering a $6.3 billion bid for Anglo-American fund manager



, the

Financial Mail on Sunday



(GBX) - Get Greenbrier Companies, Inc. Report

warned that earnings for its fiscal third quarter ended May 31 will range from 42 cents to 44 cents a share. The current five-analyst

First Call

consensus estimate calls for Greenbrier to earn 49 cents.


(LPX) - Get Louisiana-Pacific Corporation Report

agreed to acquire

Le Groupe Forex

of Canada for $408 million.

Citing continued soft demand for metalworking tools and plastics processing equipment in Europe and North America,



said second-quarter earnings will be down about 10% from the 45 cents a share reported in the second quarter a year ago. The current 10-analyst consensus estimate calls for earnings of 50 cents. The company added it projects results in the second half of the year to show gradual improvement.

Planet Hollywood


President and COO William Baumhauer, brought in less than a year ago to turn around the theme restaurateur's flagging fortunes, abruptly resigned. The once-highflying stock was up 1/8 to 13/16 on the news.



posted fiscal third-quarter earnings of 16 cents a share, beating the 17-analyst estimate by a penny and up from the year-ago 13 cents.

TheStreet Recommends

Wisconsin Energy

(WEC) - Get WEC Energy Group Inc (WEC) Report

agreed to acquire



for roughly $1.3 billion in cash and stock. The transaction will be accounted for as a purchase and is expected to be accretive to earnings during calendar year 2001.

More news on companies and stocks is available in


Stock News section.



(BA) - Get Boeing Company Report

has chosen


(DELL) - Get Dell Technologies Inc Class C Report

as its worldwide corporate standard for desktop and notebook personal computers, associated PC peripherals and selected services over the next three years, Dell announced.

Goldman Sachs



IPO price range to $12 to $14 a share from $9 to $11. The online mortgage provider's stock is expected to be priced this evening for trading tomorrow.


(IBM) - Get International Business Machines (IBM) Report


Rational Software


set a pact to jointly develop and market software that will help customers accelerate the development and deployment of e-business applications.

More tech news and commentary is available in


Tech Stocks section.

General News

President Clinton

announced that the federal budget surplus for fiscal 1999 is projected to be $99 billion, with a surplus of $142 billion projected for fiscal 2000. Excluding Social Security funds, next year's surplus is seen coming in at $5 billion. Clinton said the U.S. can be completely out of debt by 2013 based on the new calculations.



Suez Lyonnaise des Eaux

agreed to acquire

Nalco Chemical


of the U.S. for about $4.1 billion, or $53 a share.


CEO Roberto Colaninno was named chairman and CEO of

Telecom Italia


as Olivetti completed its takeover of the fourth-largest telecom company in Europe. Olivetti beat out

Deutsche Telekom

(DT) - Get Dynatrace, Inc. Report

in a battle for Telecom Italia.

Over the weekend, the

Nihon Keizai Shimbun

reported that the vice finance minister for international affairs,

Eisuke Sakakibara

, will step down in July to be replaced by

Haruhiko Kuroda

, currently director general of the

Ministry of Finance's

international bureau. The move is hardly unexpected: Sakakibara was to have left the post last summer, but stayed on due to the economic crisis rocking Asia. Still, there will be something of a readjustment process for U.S. policy-makers. Because they were colleagues at


, Sakakibara and



Lawrence Summers

had good rapport.

More international news and commentary is available in


International section.


"Hello, Senator Clinton. No, not you...."

The New Yorker

reports that President Clinton may be considering a run for the


from Arkansas in 2002.

Hillary Rodham Clinton

, of course, is close to announcing a run for the Senate from New York in 2000. Should both Clintons win and take office, the U.S. would officially move into the postsatire era. Get your snarkiness in now.

Have a dumb question relating to finance? Great. Have a


dumb question? Even better. Send it to, and Staff Reporter Thomas Lepri will do his best to answer every Saturday. Include your full name, and please, no questions seeking personal financial advice or regarding personal brokerage disputes. And this reminder: Because of the volume of mail, personal replies can't be guaranteed.

Staff Reporter Brian Louis and Senior Writer Justin Lahart contributed to this report