Monday, May 3, 1999

This one goes to 11: The Dow turns it up. Meanwhile, tech stocks founder and Goldman Sachs prices its IPO.
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Markets

The market just can't deny the investing public's insatiable appetite for

CNBC

millennial specials. It barely even tries anymore. Hello,

Dow

11K.

The

Dow Jones Industrial Average

closed up 222.79 to 11,011.83. Cyclicals boomed again, but so did almost everything else outside the technology sector. The rally's breadth -- including oil, transports, financials and drugs -- brought the

S&P 500

up 19.37 to 1354.55.

Technology stocks cut their losses late in the session to bring the

Nasdaq Composite Index

a relatively soft landing; the Nasdaq closed down 7.80 to 2535.05;

TheStreet.com Internet Sector

lost 23.29 to 632.97 in a broad selloff highlighted by loss leaders

Amazon.com

(AMZN) - Get Report

, down 21 1/16 to 150 15/16, and

Yahoo!

(YHOO)

, down 12 1/16 to 162 1/2. The small-cap

Russell 2000

gained 0.47 to 433.28.

Major European indices were mixed: Frankfurt's

Dax

closed modestly lower, while Paris'

CAC 40

finished in positive territory. In Asia, Hong Kong's

Hang Seng

added 3.87 to 13,337.07 overnight. Exchanges were closed in London and Japan.

For more markets action and news, click

here.

Companies

Data services firm

Ceridian

(CEN) - Get Report

is buying

ABR Information Services

(ABRX)

, which provides benefits administration, payroll and human-resource services, for $25.50 a share in cash, or about $750 million.

Shares of insurance holding company

Delphi Financial

(DFG)

are soaring after the company said it sold its

Unicover Managers

reinsurance unit to former Unicover shareholders. Delphi did not disclose the terms of the agreement, but said it expects to break even on Unicover, which it bought in November for $23 million. Delphi was lately up 9 1/8 to 40 1/4.

Milwaukee bank

Firstar

(FSR)

set plans Friday to buy

Mercantile Bancorp

(MTL) - Get Report

of St. Louis in a $9.9 billion stock transaction.

The fun starts tomorrow.

Goldman Sachs

said it priced 69 million shares at $53 each.

MediaOne's

(UMG)

board approved a $62.5 billion buyout offer from

AT&T

(T) - Get Report

and gave

Comcast

(CMCSK)

until Thursday to make a competing bid. Comcast is working with

Microsoft

(MSFT) - Get Report

and

America Online

(AOL)

to sweeten its original $52.53 billion offer.

Merck

(MCK) - Get Report

filed with the

Securities and Exchange Commission

a shelf registration for up to $1 billion in debt securities.

SBC Communications

(SBC)

and

Telmex

(TMX)

are buying Puerto Rico's

Cellular Communications

(CLRP)

for about $814 million in cash and long-term debt.

For more news on companies and stocks, click

here.

Tech

Dutch electronics firm

Philips Electronics

(PHG) - Get Report

is buying California microchip maker

VLSI Technology

(VLSI)

for $1.27 billion after agreeing to raise its offer by 24%, ending two months of negotiations.

RealNetworks

(RNWK) - Get Report

unveiled

RealJukebox

, a digital music platform that lets users download music from the Web in the

a2b

format developed by AT&T.

TheStreet.com

covered the launch in

a story this morning.

RSL Communications

(RSLC)

set plans to take Web telephony subsidiary

Delta Three

public. The deal is expected to happen sometime during the third quarter.

For more tech news and commentary, click

here.

General News

The

National Association of Purchasing Management

released its monthly

Purchasing Managers Index

, which unexpectedly fell to 52.8 in April, still signifying growth in the manufacturing sector but down from last month's 54.3 reading. The 30-year Treasury bond rallied on the news. (For more on the fixed-income market, see today's early

Bond Focus.)

NATO

war planes struck a major power grid in Belgrade today, blacking out the city. Alliance spokesman

Jamie Shea

said that Yugoslav President

Slobodan Milosevic

should not expect any "reward" for this weekend's release of three captured U.S. soldiers.

The

Commerce Department

released figures showing personal income rising at a 0.4% clip in March, matching economists' estimates and down from last month's 0.5% increase. Consumption also increased 0.4% for the month, better than the forecasted 0.3% but down from the previous month's 0.7%.

International

German cement company

Heidelberger Zement

made a $2.58 billion offer to buy 73.4% of Swedish cement maker

Scancem

from Norway's

Aker RGI

and Sweden's

Skanska

.

Telecom Italia

(TI)

and

Deutsche Telekom

(DT) - Get Report

are talking with a third telecom company about joining their proposed combination, according to

The Wall Street Journal

, which cited a person close to the situation.

For more international news and commentary, click

here.

Elsewhere

Carolina Hurricanes

defenseman

Steve Chiasson

died early this morning when his pickup truck flipped on the way home from the Raleigh-Durham International Airport. Chiasson, a 13-year

NHL

veteran, was 32.

John Elway

, 38, yesterday announced his retirement from pro football, leaving

Denver Broncos

quarterback

Bubby Brister

to take over his primary duty of handing the ball off to

Terrell Davis

.

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