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Monday, Oct. 11, 1999

It's a slow, slow Monday for after-hours trading, with Savoir heaviest on Island and three firms tied over on Market XT.

After-Hours Markets

Nothing exciting tonight, but Mondays are usually moderate and only move on news.

Savoir Technology

led the most-actives on

Island ECN

for the entire post-bell period.

Intel

(INTC)

and

Qwest Communications

(QWST)

traded heavier as the night wore on.

Over on

Market XT

it was a small world after all.

Disney

(DIS)

shared the top slot with

Bank of America

(BAC)

and

Unisys

(UIS)

, all trading on 1,000 shares.

Island ECN, owned by Datek Online, offers trading, mainly in Nasdaq-listed stocks, from 8 a.m. to 8 p.m. EDT. Prior to Sept. 15 Island offered trading from 8 a.m. to 5:15 p.m. EDT

.

MarketXT, formerly Eclipse Trading, offers after-hours trading to retail clients of Morgan Stanley Dean Witter'sundefinedDiscover Brokerage and Mellon Bank'sundefinedDreyfus Brokerage Services. Clients can trade 200 of the most actively traded New York Stock Exchange and Nasdaq Stock Market issues, 6 p.m. to 8 p.m. EDT Monday through Thursday.

TheStreet.com

updates the most active issues on both MarketXT and Island ECN in Got a Minute? and in the Evening Update.

--

Eric Gillin

Markets

Technology stocks pulled ahead and left broader proxies in the dust. The tech-laden

Nasdaq Composite Index

gained 29.4 to a record 2915, while

TheStreet.com Internet Sector

index danced up 12.62 to 745.41. Meanwhile, the

Dow Jones Industrial Average

surrendered its intraday gain and ended down 1.6 to 10,648. The broader

S&P 500

edged down to 1335, just under its opening mark.

The big European indices closed narrowly mixed with France's

CAC

and London's

FTSE

up modestly, while Germany's

Xetra Dax

was down a notch.

Asian markets ended lower as Hong Kong's

Hang Seng

fell 119.7, or 0.9%, to 12,992.72, and Tokyo's

Nikkei

slipped 74.37 to 18,062.18.

Mergers, acquisitions and joint ventures

Ask Jeeves

undefined

, a provider of natural-language, question-answering services on the Web, said

Microsoft

(MSFT)

will expand its use of Ask Jeeves' "Corporate Question Answering Service" on Microsoft's personal online support site.

TSC

reported on the

deal in a story this morning.

Cisco Systems

(CSCO)

said it would step up the pace of acquisitions, with plans for more than 20 purchases in the next year with an estimated price tag of up to $10 billion in cash and stock. Cisco said it planned to pick up a number of companies in Europe ranging from data, voice and video integration to software applications.

Deutsche Telekom's

(DT)

CEO told

Focus

, a German magazine, that Deutsche Telekom is pondering selling its 25% stake in

Global One

to

France Telecom

(FTE)

, according to a

Reuters

report.

German newspaper

Welt am Sonntag

said Deutsche Telekom is in talks with

SBC Communications

undefined

. However, the article didn't state whether the talks were regarding an alliance or a merger,

Reuters

reported.

Entergy

(ETR)

said it would pay $1.9 billion to

General Electric's

(GE)

GE Power Systems

for 28 power generating turbines and related services. Separately, Entergy Power, the power development arm of Entergy, and

PPG Industries

(PPG)

said they plan to build, own and operate a 500-megawatt natural-gas-fired power plant in Lake Charles, La. at an estimated cost of $190 million.

Global Crossing

(GBLX)

confirmed it's buying

Racal Electronics'

Racal Telecom

for roughly $1.65 billion. The news was reported in today's

Wall Street Journal

and

Financial Times

.

Nokia

(NOK)

said it will begin cooperation with

IBM

(IBM)

in promoting and building mobile Net solutions.

PeopleSoft

(PSFT)

agreed to buy

Vantive

(VNTV)

in a stock deal worth $433 million. Vantive said it expected to report a third-quarter net loss between 16 cents and 18 cents a share, well below the eight-analyst expectation that the company would break even. Separately, PeopleSoft said it expected earnings in line with the 21-analyst estimate of 1 cent a share.

Unisys

(UIS)

announced a multimillion-dollar agreement with

Dow Jones

undefined

, publisher of the

Journal

, as part of a redesign initiative for the editorial and pagination processes of the newspaper.

National-Oilwell

undefined

and Norweigan oil-service company

Hitec ASA

announced early Monday a definitive merger agreement valued at about $125 million. Each Hitec share will be exchanged for 0.21259 of a National Oilwell share plus 50 cents. Hitec, which supplies automation and remote control technologies for offshore oil and gas drilling and production, expects to sell its non-drilling related business to a new holding company effective with the acquisition.

National Oilwell's offer, expected to be approved by the Hitec board, represents a 25% premium based on the last 20 trading days, the companies said.

--

Mavis Scanlon

Warnaco Group

undefined

has offered to buy

Authentic Fitness

(ASM)

for $20.50 a share in cash, a 16.7% premium over Authentic Fitness' closing price Friday.

XL Capital

(XL)

said it raised its offer to buy

Capital Re

(KRE)

to $13 a share or about $420 million, from a previous offer of $12.50 a share. XL also said it would enter a merger agreement with Capital as well as pay rival insurer

Ace Capital

(ACL)

a $25 million termination fee if its exisitng merger agreement with Capital Re is broken.

Earnings/revenue reports and previews

(Earnings estimates are from

First Call/Thomson Financial

.)

Abbott Laboratories

(ABT)

posted third-quarter earnings of 38 cents a share, in line with the 15-analyst estimate.

Big Flower

(BGF)

said it sees lower-than-expected third-quarter earnings. The company said it believed third-quarter earnings were down 5% to 10% from the year earlier 57 cents a share. The five-analyst estimate calls for earnings of 69 cents a share.

CK Witco

(CNW)

said third-quarter earnings would be between 16 cents and 18 cents a share, well below the four-analyst estimate of 28 cents. CK Witco said it sees fourth-quarter earnings between 6 cents and 8 cents a share, also lower, than the three-analyst estimate of 18 cents a share, saying its results would be hurt by weakness in recently merged units.

Datastream Systems

(DSTM)

said it sees third-quarter earnings of between a 1-cent profit, or a 1-cent loss, well below the four-analyst estimate of 16 cents a share. The company said license revenues were weaker than expected.

Fastenal

(FAST)

reported third-quarter earnings of 45 cents a share, a penny shy of the six-analyst estimate of 46 cents a share, but up from the year-ago 37 cents.

Gannett

(GCI)

reported better-than-expected earnings of 74 cents a share, above the 13-analyst estimate of 71 cents and up from a year-ago 62 cents a share. Gannet said its newspaper unit posted record results on advertising demand.

Knight/Trimark

(NITE)

warned that it sees third-quarter earnings between 17 cents and 19 cents a share, citing slower trading. The 10-analyst estimate currently calls for earnings of 30 cents a share.

TSC's

James Cramer

had his

say on the preannouncement this morning.

Merrill Lynch

cut its rating to near-term neutral from accumulate.

New Era of Networks

(NEON)

said it sees third-quarter revenue to be about $30 million to $32 million, a record for quarterly earnings. The company said it expects to report a net loss, about in line with estimates. The 10-analyst estimate calls for a loss of 18 cents a share in the third quarter.

Private Business

undefined

said it expected third-quarter and annual earnings to fall below analyst estimates. The company said it sees third-quarter earnings between 4 cents and 5 cents a share, and fourth-quarter EPS between 4 cents and 6 cents. The two-analyst estimate calls for 7 cents and 11 cents, respectively.

Analyst actions

Lehman Bros.

upgraded its investment opinion to outperfrom from neutral and raised its 2000 and 2001 earnings estimates for offshore drillers

Ensco

undefined

,

Global Marine

undefined

,

Noble Drilling

(NE)

, and

Rowan Companies

(RDC)

.

Lehman raised its 2000 estimate for Ensco, to 15 cents from a loss of 10 cents and its 2001 estimate to 85 cents from 55 cents. Global Marine's 2000 estimate was increased to 45 cents from 30 cents, and its 2001 estimate to 90 cents from 75 cents. Noble Drilling's 2000 estimate was raised to 85 cents from 75 cents, and its 2001 estimate to $1.20 from $1.10. Rowan's 2000 estimate was raised to 20 cents from a projected loss of 10 cents, and its 2001 estimate was upped to 90 cents from 60 cents. All four stocks were up in early trading.

--

Mavis Scanlon

Morgan Stanley Dean Witter

upgraded

Chevron

(CHV)

to outperform from neutral.

Banc of America

upped its rating on

CompX

(CIX)

to buy from market performer.

Morgan Stanley Dean Witter

lowered its opinion on

Galileo

undefined

to neutral from strong buy.

Merrill Lynch upgraded

Glaxo Wellcome

undefined

to intermediate-term accumulate from neutral.

Goldman Sachs

started coverage of

MGC Communications

undefined

with a market outperformer rating.

Credit Suisse First Boston

raised its rating on

MGM Grand

(MGG)

to buy from hold.

Banc of America Securities

upped its rating on shares of

Natrol

undefined

to strong buy from buy.

J.P. Morgan

downgraded

Norfolk Southern

(NSC)

to long-term buy from buy.

Lehman Brothers

sliced its fiscal 2000 estimates on

Quantum-DLT

(DSS)

to $1.36 from $1.53 a share.

Banc of America cut its rating on

Rexall Sundown

undefined

to buy from strong buy.

Deutsche Banc Alex. Brown

raised its rating on

Stryker

(SYK)

to strong buy from buy.

Morgan Stanley upgraded

Texaco

(TX)

to outperform from neutral.

ING Barings

rolled out coverage of

Zebra Technologies

(ZBRA)

with a buy rating and set a price target of 50.

Miscellany

Ameritech

(AIT)

chairman and CEO Richard Notebaert said he plans to retire effective Dec. 30. The news comes one week after the

Federal Communications Commission

approved

SBC Communications'

undefined

$61 billion acquisition of Ameritech.

British Airways

(BAB)

said it would buy 12

Airbus Industries

A318 planes for $471.4 million, and had options for an additional 12. The deal comes as a blow to

Boeing

(BA)

, which had hoped to sell its own 100-seater, the 717.

Separately, Boeing said its

Boeing Business Jets

division received 10 new orders for business jets, boosting its total orders to 56.

DaimlerChrysler

(DCX)

said it will invest $27.5 billion in Germany over the next three years. The money earmarked for Germany is part of a $47.66 billion worldwide investment package announced earlier this year.

Matav-Cable Systems Media

undefined

said it appointed Daniel Yaakobi president and CEO, replacing acting CEO Amit Levin, who was appointed general manager.

Oddenda

An otherwise peaceful evening of drinking and driving in Benton, Tenn., ended with the death of a man who refused to return his friend's cigarette lighter. Glenn Young, 41, apparently borrowed drinking pal Michael Raines' lighter while the two men were out cruising around. When Young refused to return it, a light went off in Raines head, so he made a pit stop at home for his .22 caliber semi-automatic. He promptly expressed his displeasure by putting a bullet in Young's chest. Police said the suspect did not appear to have a sentimental attachment to the lighter.