Thursday, January 7, 1999

Stocks are continuing a moderate pullback, except for Internet stocks, which are continuing an immoderate rise.
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Markets

U.S. stocks across the board took a sharp downturn at the open, but Internet stocks had climbed back into the black at midmorning.

European bourses generally were trading lower at midafternoon.

Asian markets picked up where they left off yesterday, with Hong Kong's

Hang Seng

up 459.77 to 10,693.57 and Japan's

Nikkei 225

up 68.10 to 13,536.56.

For more markets action and news, click

here.

Companies

Disney

(

(DIS) - Get Report

DIS:NYSE) Chairman and CEO

Michael Eisner

received a $5 million bonus for fiscal 1998, down 49% from the previous year in accordance with the company's sluggish 1998 performance.

Former

Clinton

Chief of Staff

Erskine Bowles

will join buyout firm

Forstmann Little

as a partner.

Shares of

Gucci Group

(

(GUC)

GUC:NYSE) skyrocketed yesterday after luxury goods maker

LVMH Moet Hennessy Louis Vuitton

(

(LVMHY)

LVMHY:Nasdaq ADR) said it bought a 5% stake in the company.

Northrop Grumman

(

(NOC) - Get Report

NOC:NYSE) said it will take a $125 million charge in the 1998 fourth quarter and estimated that 1999 profits will be as much as 20% beneath analysts' figures.

Phillips Petroleum

(

(P)

P:NYSE) announced that it will eliminate 1,400 jobs in 1999. The company also said that a $339 million charge will contribute to a net loss for the 1998 fourth quarter.

For more news on companies and stocks, click

here.

Tech

MCI WorldCom

(

(WCOM)

WCOM:Nasdaq) reportedly is set to join

Vodafone

(

(VOD) - Get Report

VOD:NYSE ADR) and

Bell Atlantic

(

(BEL)

BEL:NYSE) in the bidding fray for

AirTouch Communications

(

(ATI) - Get Report

ATI:NYSE).

Microsoft

(

(MSFT) - Get Report

MSFT:Nasdaq) tomorrow will announce an alliance with satellite TV company

EchoStar

(

(DISH) - Get Report

DISH:Nasdaq) to provide interactive television via satellite.

For more tech news and commentary, click

here.

International

South Korean

chaebol

LG Group

agreed to sell its stake in semiconductor unit

LG Semicon

to

Hyundai Group's Hyundai Electronics Industry

.

Volvo

(

(VOLVY)

VOLVY:Nasdaq ADR) reportedly has hired a U.S. investment bank to help it sell its car division.

The

Bank of England

cut its benchmark interest rate to 6.0% in anticipation of worsening domestic and international economic conditions.

For more international news and commentary, click

here.

General News

The impeachment trial of

President Clinton

began today.

The number of Americans filing for first-time unemployment benefits declined last week by 22,000.

A U.S. fighter plane fired an antiradar missile at an Iraqi air-defense installation that the pilot determined was ready to fire on him.

Details have emerged showing that the

United Nations Special Commission

shared information on Iraq with the U.S.

Central Intelligence Agency

, one day after the White House and U.N. chief weapons inspector Richard Butler denied the allegations.

Elsewhere

The

Associated Press

named Reggie White the

National Football League's

Defensive Player of the Year.

The

National Basketball Association

and the players union reached an agreement yesterday that will save a portion of the 1998-99 season.