Publish date:

Thursday, May 13, 1999

The Dow and the S&P 500 finish with records, lashed on by IBM's stellar performance.


Helped by gains in the bonds, the stock market finished the day in positive territory, with most shares in the black. But tech stocks, buffeted by afternoon selling, ultimately didn't participate in the move.


Dow Jones Industrial Average

gained 107.39 to 11,107.76, driven by a surging


(IBM) - Get International Business Machines (IBM) Report

. Big Blue climbed 19 1/2, or 9%, to 245 on the day, after a raft of analysts came out with positive comments on the company following yesterday's annual analyst meeting.


S&P 500

closed at 1367.56, up 3.56.


Nasdaq Composite

lost 24.46 to 2582.08, hit hard by that late selling in tech. It had been up as many as 24 points.


Russell 2000

added 1.58 to close at 450.84. Internet Sector

index fell 15.21 to 641.70.

Helped by weaker-than-expected prints on April

retail sales

and the April

Producer Price Index

, the 30-year Treasury bond climbed 1 1/32 to 92 29/32, dropping the yield to 5.75%.

Major European indices finished higher, with the Paris


gaining 1.4% and London's


picking up about 1.8%; Frankfurt's


was closed for a holiday. Asian markets were mixed, with Hong Kong's

Hang Seng

rising 40.7 to 13,053.67 and Tokyo's


off 96.11 to 16,851.25.

For more markets action and news, click




Justice Department

filed an antitrust suit against




American Airlines

, charging that the air carrier used anticompetitive practices to drive smaller airlines from its Dallas hub. The suit comes after about two years of discussions between AMR and Justice officials on the matter.

Food concern


(CAG) - Get Conagra Brands, Inc. Report

set plans to cut 7,000 jobs and take at least $810 million in pretax charges over the next three years.

Cyprus Amax Minerals


set plans to sell its remaining coal mining operations to Germany's

RAG International Mining

for about $1.1 billion in cash and debt assumption.

Johnson & Johnson

(JNJ) - Get Johnson & Johnson (JNJ) Report

and biotechnology firm



have suspended their merger talks, according to



The New York Times


The Wall Street Journal

, which cited snags over price and Centocor's co-marketing relationship with

Eli Lilly

(LLY) - Get Eli Lilly and Company (LLY) Report

Shares of

Matrix Pharmaceutical

(MATX) - Get Matson, Inc. Report

are rocketing after it announced yesterday that its injectable gel cancer treatment, IntraDose, was given fast-track review by the

Food and Drug Administration

. The stock was lately up 4, or 142%, to 6 3/4.

Nortel Networks


unveiled details of the three-year restructuring plan announced in January. The plan includes selling to contractors most of its circuit board assembly plants, electromechanical subsystems and manufacturing operations as well as a large portion of its repair business.

Oxford Health Plans


named CEO

Norman Payson

to replace

Fred Nazem

as the company's chairman. Nazem will remain on the board.

Atlanta-based utility firm


TheStreet Recommends

(SO) - Get Southern Company Report

said it is looking at "several" unsolicited offers for its 49%-owned, U.K.-based

South Western Electricity Board


For more news on companies and stocks, click



IBM's incredible run isn't over yet, according to

Merrill Lynch

, which today reiterated its buy rating and raised its price target for the stock to 270. Yesterday CEO

Louis Gerstner

told analysts that e-commerce accounts for about one-quarter of the company's revenue. IBM was lately up 16 1/8, or 7.2%, to 241 5/8.

Web portal



said it expects third-quarter earnings to match analysts' estimates of a loss of 3 cents a share. The company is due to report May 18.

Revealing its softest side yet,


(S) - Get SENTINELONE, INC. Report

today launches a

Web site to sell appliances online.

For more tech news and commentary, click


General News


Labor Department

released its

producer price index

, which increased 0.5% for April, 0.1 percentage point lower than forecasted and up from the previous month's 0.2% rate. The core rate, which excludes food and energy costs, increased 0.1%, in line with expectations and unchanged from last month. The agency also released figures showing

initial jobless claims

at 303,000 for the week ended May 8, essentially matching expectations and unchanged from the previous week.

The Yugoslav army appears to be beginning a slow withdrawal from Kosovo, as foreign reporters watched about 120 Yugoslav troops leaving the province in a convoy of trucks and buses. Yugoslav Gen.

Vladimir Lazarevic

told reporters that continuing


attacks are responsible for the slow withdrawal pace.

The Russian


today began impeachment hearings against President

Boris Yeltsin



Not naming names, U.K. food group

Hillsdown Holdings

said it is in merger discussions with a number of companies.

South Korea is putting $2.5 billion into

Korea First Bank

to keep the bank afloat after a delay in the government's negotiations to sell it to

Newbridge Capital


For more international news and commentary, click



Gene Sarazen

, one of just four men ever to win each of golf's four major tournaments, died today from complications of pneumonia at a hospital in Naples, Fla. He was 97.

Rib-tickling as the prospect may have been,

"Tokyo" Joe

is not going public. Joe Park, the founder of the

Societe Anonyme

daytrading Web site who was recently subpoenaed by the

Securities and Exchange Commission


alleged pump-and-dump practices, yesterday confirmed that an email announcing his IPO plans circulated by Societe members Tuesday is nothing more than a hoax by one of his subscribers.

A group led by

Ted Leonsis

, president of

America Online



AOL Studios

, agreed to spend more than $200 million for the


Washington Capitals

and minority stakes in the


Washington Wizards


MCI Center

arena. Meanwhile, billionaire

Richard Jacobs

announced that he is putting the

Cleveland Indians

baseball team, which he bought in December 1986, up for sale.

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