Thursday, January 28, 1999
Markets
U.S. stocks were higher at midafternoon. Blue-chips backed off a bit from their session highs, while the tech sector continued to add gains.
European bourses closed higher, with the exception of London's
FTSE 100
, which lost 3.9 to 5,872.5.
Asian markets took a drubbing, as Japan's
Nikkei 225
dropped 107.74 to close at 14,342.32, while Hong Kong's
Hang Seng
shed 358.70 to 9,360.96.
As sure as John Henry was a steel-drivin' man, the
Chicago Board of Trade
is sticking with the open-outcry trading system for now. Members voted Wednesday to nix the board's alliance with
Eurex
, the fast-growing European electronic exchange system
For more markets action and news, click
here.
Companies
Bausch & Lomb
(BOL)
posted a $43.1 million fourth-quarter loss. Excluding one-time charges, the company earned 75 cents a share, a penny under Wall Street estimates.
Ending weeks of speculation,
Ford
(F) - Get Report
said it has agreed to buy the car operations of Swedish auto maker
Volvo
(VOLVY)
for $6.45 billion. Volvo will retain its truck business under the deal.
U.S. auto and aerospace components manufacturer
TRW
(TRW)
beat out
Federal-Mogul
(FMO) - Get Report
in the bidding war for
LucasVarity
(LVA)
, having agreed to acquire the U.K.-based auto-parts maker for about $6.6 billion in cash.
Lockheed Martin
(LMT) - Get Report
posted fourth-quarter earnings of 33 cents a share, down 66% from last year. Excluding one-time charges, the company earned 81 cents a share, down from 89 cents a share, matching analysts' expectations.
For more news on companies and stocks, click
here.
Tech
America Online
(AOL)
last night reported fourth-quarter earnings of 17 cents a share -- 3 cents over Wall Street estimates -- and announced a 2-for-1 stock split.
The king of chips will double-dip.
Intel
(INTC) - Get Report
today announced a 2-for-1 stock split and raised its quarterly dividend by a penny per share.
TSC
columnist
James J. Cramer
spat up his coffee at the news.
GTE
(GTE) - Get Report
posted fourth-quarter earnings of 88 cents a share, matching Street expectations.
Web portal
Yahoo!
(YHOO)
said it has agreed to acquire electronic communities site GeoCities
(GCTY)
.
TSC
broke the news of the talks last night.
For more tech news and commentary, click
here.
International
A government audit has revealed that municipal investment trust
Guangzhou International Trust & Investment
is dangerously close to bankruptcy. It is unclear whether the Chinese government would save the trust if it became insolvent.
The
Japan Automobile Manufacturers Association
released figures today showing Japanese auto production fell 8% last year, the first decline in three years.
Swedish cell-phone maker
Ericsson
(ERICY)
said its fourth-quarter net income dropped 3% from last year, citing weak demand for fixed-line switches and falling prices for mobile phones. The company's lower profits still beat expectations, though. Last night
TSC
previewed the earnings report.
The government of Venezuela last night filed a lawsuit seeking billions of dollars in damages from
Brown & Williamson
,
British American Tobacco
(BTI) - Get Report
,
Philip Morris
(MO) - Get Report
,
RJR Nabisco
(RN)
unit
R.J. Reynolds Tobacco
,
Loews
(LTR)
unit
Lorillard Tobacco
and
Brooke Group
unit
Liggett Group
.
For more international news and commentary, click
here.
General News
Steel imports from Japan were 47% lower than the previous month, according to U.S.
Commerce Department
figures.
Federal Reserve
Chairman
Alan Greenspan
played the heavy today before the
Senate Budget Committee
, saying that, in the long term, Social Security could only be saved by raising taxes or cutting benefits.
The
Labor Department
released
Employment Cost Index
figures showing wages and benefits rising 3.4% in 1998, the fastest clip in five years.
Arthur Levitt
, chairman of the
Securities and Exchange Commission
, yesterday issued a statement warning investors of the "highly risky" nature of day trading, and electronic trading in particular. Last night
TSC
contextualized Levitt's comments.
Elsewhere
Censure, anyone? Former
Northwestern
football player
Christopher Gamble
pleaded guilty to lying to a federal grand jury investigating illegal sports betting and could face up to a year in prison on the charge. However, prosecutors said they would consider seeking a lighter sentence if Gamble is helpful in their investigation.
