Thursday, July 1, 1999

Woowoo. The S&P 500 and Nasdaq Composite Index hit career highs. Day Runner considers selling itself. The Senate OKs Summers as Treasury Secretary.
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Nasdaq Composite Index

and the

S&P 500

closed at record highs again today, while the small-cap

Russell 2000

, freshly reconstituted yesterday, slumped after its recent big gains.

Bonds gave back a healthy chunk of yesterday's advance but managed to pare their losses, with the bellwether 30-year Treasury down 14/32 to 89 18/32 and yielding 6.01%

European bourses rallied, with the U.K.'s


up 2.7%, Germany's

Xetra Dax

up 1.9% and France's


up 1.6%.

Stocks in Tokyo came roaring back from Wednesday's selloff, with the


leaping 331.01, or 1.9%, to 17,860.75. No such luck for the longs in Hong Kong, where the

Hang Seng

dropped 233.35, or 1.7%, to 13,532.14.

More markets news and commentary is available in


Markets section.


Lehman Brothers'

annual list of "10 Uncommon Values" in stocks came out this morning:

America Online



(T) - Get Report


(F) - Get Report


(INTC) - Get Report

General Instrument



(KLAC) - Get Report

Eli Lilly

(LLY) - Get Report


(MSFT) - Get Report

Tyco International




took a closer look at Lehman's list in a

story this morning.


(CAG) - Get Report

after the close posted fourth-quarter operating earnings of 41 cents a share in line with the 15-analyst estimate.

Day Runner


issued an earnings warning this afternoon and said its board unanimously decided to "seek possible strategic alternatives," including selling the company. Day Runner estimates it will post a net loss for the fourth quarter of about 14 cents to 18 cents a share, a mile away from the current four-analyst estimate that projects earnings of 10 cents.


(DD) - Get Report

said it plans to restructure its $2 billion Crop Protection business. As a result of the restructuring, about 800 jobs will be eliminated. DuPont said the estimated annual pretax savings of about $200 million are expected to begin accruing in the fourth quarter. DuPont expects to record a nonrecurring charge in the third quarter for employee separation costs associated with the restructuring. DuPont Crop Protection, which sells herbicides, fungicides and insecticides to the corn and soybean, cereals and specialties markets, employs 5,500 people in 40 countries.


(NKE) - Get Report

posted fourth-quarter earnings of 38 cents a share, a penny higher than the 16-analyst outlook and above the year-ago 4 cents. The retailer said it sees 2000 percentage revenue growth in the midsingle digits.

More news on companies and stocks is available in


Stock News section.


AOL and


, a low-priced PC manufacturer, set a pact under which AOL and

CompuServe 2000

software will be integrated into all eMachines PCs and will be accessible through icons prominently featured on the eMachines desktop. Under the pact, AOL will also make a minority investment in eMachines. In addition, eMachines and AOL's CompuServe will offer a special limited-time retail promotion beginning early this summer. Under the promotion, consumers signing up for three-year memberships to the CompuServe 2000 interactive service will get $400 rebates on three eMachines computers, including eMachine's $399



Internet search service

Ask Jeeves


was enjoying an extraordinary public debut, up 50 15/16, or 363.8%, to 64 15/16.

Morgan Stanley Dean Witter

priced the 3 million-share offering at $14 a share.

Best Buy

(BBY) - Get Report


Prodigy Communications


, an Internet service provider, are rolling out a nationwide discounted PC program with the purchase of Prodigy Internet service at a Best Buy store.



has acquired

CCOM Information Systems

, a privately held developer of directory solutions and computer telephony integration software. Terms weren't disclosed.

Microsoft CFO Greg Maffei told analysts and reporters on a conference call Wednesday that the

Securities and Exchange Commission

is probing the software titan's accounting policy for setting aside cash reserves. The company said it's confident the investigation, which was prompted by a

Wall Street Journal

article quoting a former Microsoft internal auditor, won't hurt earnings.

More tech news and commentary is available in


Tech Stocks section.

General News

The Senate this afternoon approved Lawrence Summers as the nation's brand spanking new Treasury Secretary. He will replace Robert Rubin, who is stepping down from the post.


National Association of Purchasing Management

reported its

Purchasing Managers' Index

came in at 57.0 in June, up from 55.2 in May and above expectations of 54.4. The index of prices paid rose to 53.5 in June from 52.2 in May. The prices paid index is now at its highest level since October 1997. A reading above 50 indicates that the manufacturing economy is generally expanding while below 50 it indicates that it is generally contracting.

Peace talks in Northern Ireland are shakily proceeding, with Catholics and Protestants accusing each other of spurning compromise. Progress depended on whether the

Ulster Unionists

, Northern Ireland's major British Protestant party, would accept a pledge from the

Irish Republican Army


Sinn Fein

party to do its best to deliver the IRA's disarmament by May.


Japanese telecom giant

Nippon Telegraph & Telephone


implemented its long-planned corporate reorganization, creating a holding company with three phone company subsidiaries. Under the restructuring, NTT split its business operations into two regional telephone companies and one long-distance and international unit.

More international news and commentary is available in


International section.


The third-largest


jackpot ever, $150 million, was won last night by the holder of a ticket bought in Minnesota, where all of the lottery winners are above average.

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


dumb question? Even better. Send it to, and Staff Reporter Thomas Lepri will do his best to answer every Saturday. 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.

Markets Editor

John J. Edwards III contributed to this report.