Thursday, January 7, 1999

At the end of the day, U.S. stocks end up about where they started, plus Oregon State's Mike Riley signs with the Chargers.
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Markets

A late rally helped U.S. stocks close pretty much where they began, with the exception of Internet stocks, which once again posted huge gains.

The

Dow Jones Industrial Average

lost 7.21 to 9,537.76, and the

S&P 500

dropped 2.60 to 1,269.74. The

Nasdaq Composite Index

gained 5.23 to 2.326.09, and the small-cap

Russel 2000

picked up a modest 0.04 to 427.83.

TheStreet.com Internet Sector

index jumped 29.75 to 475.10.

European bourses generally closed lower.

For more markets action and news, click

here.

Companies

AirTran Holdings

(AAIR)

named Joseph B. Leonard chairman, president and CEO, effective Monday.

Shares of

Borders Group

(BGP)

plummeted after the company said its 1998 earnings will fall short of expectations.

Finova Group

(FNV) - Get Report

agreed to acquire small business loan originator

Sirrom Capital

(SIR) - Get Report

in a stock swap worth about $379 million.

Northrop Grumman

(NOC) - Get Report

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.

Morgan Stanley Dean Witter

(MDW)

and

Lehman Brothers

(LEH)

both reported fourth-quarter earnings far above Wall Street expectations.

Phillips Petroleum

(P)

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.

Rite Aid

(RAD) - Get Report

and

General Nutrition

(GNCI)

have formed an alliance to make and market vitamins and nutritional supplements.

For more news on companies and stocks, click

here.

Tech

E*Trade

(EGRP)

and

Goldman Sachs

said they will each acquire a 25% voting interest in

Archipelago Holdings

, an Electronic Communication Network operator for

Nasdaq

stocks.

MCI WorldCom

(WCOM)

reportedly is set to join

Vodafone

(VOD) - Get Report

and

Bell Atlantic

(BEL)

in the bidding fray for

AirTouch Communications

(ATI) - Get Report

.

Microsoft

(MSFT) - Get Report

is set to announce an alliance with satellite TV company

EchoStar

(DISH) - Get Report

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)

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.

Brazil has threatened to cut off funding to its second-largest state, Minas Geras, after the state said it would stop making debt payments to the federal government for three months.

The

World Bank

today approved $1.01 billion in loans to Brazil as part of a $41.5 billion emergency package put together by the

International Monetary Fund

last November. The loans came as Brazil threatened to cut off funding to its second-largest state, Minas Geras, after the state said it would stop making debt payments to the federal government for three months.

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

Oregon State's

Mike Riley today signed a five-year deal to coach the

San Diego Chargers

.