Thursday, Feb. 11, 1999

Stocks keep soaring; USA says CMGI likes the Lycos deal; American's pilots still can't shake that bug.
Publish date:


Stocks were levitating at midafternoon, holding onto early gains. Blue-chips traded higher but were outpaced by red-hot technology and Internet issues.

European bourses closed higher, as did Asian markets. Hong Kong's

Hang Seng

gained 70.47 to 9146.80, while markets in Tokyo, Taiwan and China were closed for holidays.

For more markets action and news, click



A federal judge issued a temporary restraining order that will force

American Airlines'


pilots back to work. But the pilots called in sick again, and American canceled more than 1,100 flights.


(C) - Get Report

confirmed its plans to move its credit-card business from


to rival



Federated Department Stores


is acquiring direct marketer



in a $1.7 billion.

Real estate investment trust

Patriot American Hospitality

(PAH) - Get Report

plans to give up its REIT status in connection with restructuring the company is negotiating with two rival bidders, according to

The Wall Street Journal.

That's a lot a


miles -- a California jury ordered

Philip Morris

(MO) - Get Report

to pay a total of $51.5 million in punitive and compensatory damages to a smoker with inoperable cancer.

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(CNET) - Get Report

posted third-quarter earnings of 18 cents a share, blowing away Street estimates of 10 cents a share, and announced a 2-for-1 stock split.

Electronic Data Systems



MCI WorldCom


will exchange 13,000 employees and $17 billion worth of assets. EDS is buying MCI WorldCom's information technology services unit, and will receive a 10-year outsourcing contract for MCI WorldCom's software development and maintenance services business. In turn, MCI WorldCom will get a 10-year contract for EDS' voice and data communications services business.

Nextel Communications


is selling its 2,000 communications towers to

SpectraSite Communications

for $560 million.

USA Networks

(USAI) - Get Report

said that, contrary to previous reports,



supports its acquisition of Web portal



. CMGI owns 20% of Lycos.

For more tech news and commentary, click


General News



Alan Greenspan

testified before the

House Banking Committee

on the issue of how to revamp the 1933 Glass-Steagall Act, which put sharp barriers between the banking, brokerage and insurance industries. Greenspan voiced his support for a bill proposed by committee Chairman

Jim Leach

(R, Iowa), which would let banks extend their operations through a holding company structure regulated by the Fed.

Rhode Island's

John Chafee


James Jeffords

of Vermont and

Arlen Specter

of Pennsylvania in the ranks of Republican senators who said they will not vote to convict

President Clinton

on charges of obstruction of justice and perjury.

U.S. warplanes once again fired on several air defense installations in Northern Iraq.



(BCS) - Get Report


Michael O'Neill

its new CEO, effective March 26. O'Neill, president of


(BAC) - Get Report

financial services unit, is the first foreigner named to that position at Barclays.


Bank of England

said that the U.K.'s 1999 growth rate may be as low as 0.5%.

For more international news and commentary, click



New Zealand's parliament votes today on an Animal Welfare Bill that would give chimpanzees, orangutans and gorillas such fundamental rights as the right to life and freedom from cruel and unusual treatment.

Chimps are currently slaughtered for food in parts of Africa and kept for experiments in parts of the U.S.

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


dumb question? Even better. Send it to, and



Herb Greenberg

and I will do our best to answer. 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.


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