Monday, June 7, 1999
Markets
Amid no new economic data, stocks rallied from the get-go to the closing bell, just because. Technology was the spark, but by the end of the session even the transports had turned it around to close solidly higher. Drug stocks were a notable exception to the broad surge, finishing flat to lower.
All the major proxies closed higher. The
Nasdaq Composite Index
gained 45.80 to 2524.14; the
Dow Jones Industrial Average
added 109.54 to 10,909.38; the
S&P 500
picked up 6.77 to 1334.52; the smallish-cap
Russell 2000
took on 4.32 to 446.65; and
TheStreet.com Internet Sector
index advanced 32.41 to 585.87.
The big European indices finished higher, with London's
FTSE
, Paris'
CAC
and Germany's
Dax
each posting strong gains.
In Brazil, the normally volatile
Bovespa
was down about 0.8% late in the afternoon session.
Asian markets moved higher overnight. Hong Kong's
Hang Seng
added 421.85 to 12,837.39, while Tokyo's
Nikkei
gained 175.14 to 16,475.89.
For more markets action and news, click
here.
Companies
AlliedSignal
(ALD)
is buying
Honeywell
(HON) - Get Report
for about $15.3 billion in stock and assumed debt.
Credit-crunched home equity lender
ContiFinancial
(CFN)
is selling its auto financing unit,
Triad Financial
, to
Ford Motor Credit
subsidiary
Fairlane Credit
. ContiFinancial didn't disclose terms of the deal.
Call off the fashion police.
DuPont
(DD) - Get Report
is cutting back its polyester production, laying off about 14% of the worldwide workforce in that segment.
Wisconsin-based
Harnischfeger Industries
(HPH)
, the world's biggest maker of mining equipment, has filed for Chapter 11 bankruptcy protection. Harnischfeger, which said it has received commitments for debtor-in-possession financing of $750 million, will default on interest payments on its $1.3 billion in debt, including its bonds.
Investment banking firm
Lazard Freres
confirmed that it is combining its operations in New York, London and Paris. The company said the process will take six to nine months.
Utility holding company
NiSource
(NI) - Get Report
said it's making a $5.7 hostile cash takeover offer for natural gas company
Columbia Energy Group
(CG) - Get Report
. Columbia Energy, which rejected a previous offer by NiSource, said it is considering the bid.
Natural gas firm
Southern Union
(SUG)
is buying energy services company
Pennsylvania Enterprises
(PNT)
for $500 million in stock, cash and assumed debt.
Diversified manufacturer
Tyco International
(TYC)
is in talks to acquire British security and fire-protection equipment maker
Williams
for about $5.87 billion.
More news on companies and stocks is available in
TSC's
Stock News.
Tech
E*offering
(EOFR)
, the Internet investment bank 28%-owned by
E*Trade
(EGRP)
, launched
eoffering.com
, a Web site through which E*Trade customers can participate in IPOs.
IBM
(IBM) - Get Report
and Taiwanese computer manufacturer
Acer
inked an agreement to buy about $8 billion worth of each other's products over the next seven years. Acer already makes most of the PCs that IBM sells under the Aptiva brand.
Fragrance seller
Perfumania
(PRFM)
set plans for an IPO of its Internet unit,
Perfumania.com
. The company will offer 2.5 million shares with a pricing range of $7 to $9 apiece.
Computer tutorial maker
ViaGrafix
(VIAX)
is being acquired by
7th Street.com
(SEVL)
for about $70 million in stock.
More tech news and commentary is available in
TSC's
Tech Stocks.
General News
Talks between
NATO
and Serb leaders collapsed overnight after Yugoslavian military leaders rejected the portion of the alliance peace plan calling for a withdrawal of 40,000 Serb troops from Kosovo. NATO said air strikes are "under way and accelerating toward their prior intensity." Talks between the military and NATO commanders are expected to resume later today, according to
Reuters
, which cited a senior Yugoslav government official.
The sodomy trial of former Malaysian deputy prime minister and reformist
Anwar Ibrahim
began today, with prosecutors changing for the third time the year they claim the alleged offenses took place. Ibrahim, who has already received six years in prison for corruption, could get as much as a 20-year sentence.
International
British Steel
(BST) - Get Report
said it is buying Dutch steel and aluminum firm
Hoogovens
in a deal valued at $6.5 billion.
French oil giant
Elf Aquitaine
(ELF) - Get Report
has upped its bid for Norway's
Saga Petroleum
(SPM)
to about $4.6 billion in cash and assumed debt, in expectation of a higher offer from industrial concern
Norsk Hydro
.
More international news and commentary is available in
TSC's
International .
Elsewhere
The
San Antonio Spurs
will represent the Western Conference in the
NBA Finals
, having beaten the
Portland Trail Blazers
94-80 yesterday. It's a mixed blessing for center
David Robinson
, who, with
Michael Jordan's
retirement, has already missed his chance to choke at the game's highest level against its greatest player ever.
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