Thursday, Sept. 2, 1999

<B>After-Hours Trading:</B> 3Com, Quintiles and Intuit topped the thin MarketXT session; Amazon, Intel and Epicor Software led the pack on Island ECN.
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Markets

Last Trades on Island ECN

COMS: 27 3/32 at 5:12 p.m. EDT.

QTRN: 35 1/8 at 3:58 p.m. EDT.

INTU: 90 at 3:56 p.m. EDT.

MarketXT, formerly Eclipse Trading, offers after-hours trading to retail clients of Morgan Stanley Dean Witter's (MWD) Discover Brokerage and Mellon Bank's (MEL) Dreyfus Brokerage Services. Clients can trade 200 of the most actively traded New York Stock Exchange and Nasdaq Stock Market issues, 6 p.m. to 8 p.m. EDT Monday through Thursday. Island ECN offers trading, mainly in Nasdaq-listed stocks, from 8 a.m. to 5:15 p.m. EDT.

TheStreet.com

updates the most active issues on both MarketXT and Island ECN in Got a Minute? and in the Evening Update.

TSC

also reports how MarketXT's three most active Nasdaq-listed issues finished the Island ECN session.

--

Eric Gillin

Day Session Report

Major stock indices finished the day lower after paring losses somewhat. The

Dow Jones Industrial Average

ended down 94.67 at 10843.21, while the

Nasdaq Composite Index

was down 16 at 2734.20.

The interest-rate sensitive financial sector remained in the red in the wake of today's

Fed

comments, which alluded to a possible interest-rate hike.

JP Morgan

(JPM) - Get Report

,

Chase Manhattan Bank

(CMB)

and

American Express

(AXP) - Get Report

all trade lower.

The big European indices also ended in the red today. France's

CAC

skidded 1.8% to 455.60, Germany's

Dax

declined 2.4% to 5189.92 and London's

FTSE

finished down 1.3% to 6195.60.

Asian markets stumbled, with Japan's

Nikkei

closing down 1% at 17,631.25 and Hong Kong's

Hang Seng

finishing down 1.3% at 13,367.56

Mergers, acquisitions and joint ventures

U.S. Bancorp

(USB) - Get Report

announced plans to buy

Peninsula Bank of San Diego

for $104 million in stock. The deal calls for U.S. Bancorp to swap $40 of its stock for each share of Peninsula.

The

Justice Department

said

Fleet Financial Group

(FLT) - Get Report

and

BankBoston

(BKB)

would divest $13.2 billion in deposits and 306 bank branches to settle antitrust issues relating to their upcoming merger. The majority of their assets would be sold to one buyer, creating a regional bank that would insure competition that the deal would otherwise eliminate.

The

Missouri Public Service Commission

announced its approval for the pending merger between

Western Resources

(WR)

and

Kansas City Power & Light

(KLT)

. The transaction calls for a rate freeze and a one-time credit for the companies' Missouri customers.

Earnings/revenue reports and previews

Best Buy

(BBY) - Get Report

was pummeled after the retailer posted an 11% increase in its same-store sales, missing

Salomon Smith Barney's

estimate for a 13% to 15% gain. Best Buy fell 10 1/2 or 14.6% to 61 7/16.

Circuit City

(CC) - Get Report

traded down in sympathy, down 4 7/16, or 10.6%, to 37 3/8.

Campbell Soup

(CPB) - Get Report

posted disappointing earnings of 28 cents a share, missing the 15-analyst estimate of 29 cents and far below the year-ago 40 cents.

Costco

(COST) - Get Report

said it anticipates its fourth-quarter earnings to be in line with the analyst estimate of 76 cents a share, not including a $30 million after-tax charge. According to the retailer, the tobacco price hike helped raise sales by 1%, with same-store sales rising 13%.

Footstar

(FTS) - Get Report

said it saw a 0.1% increase in same-store sales, reiterating that it agreed with third-quarter analyst earnings estimates.

J.C. Penney

(JCP) - Get Report

posted a 3.2% decrease in same-store sales for the four weeks ending Aug. 28.

Kmart

(KM)

said same-store sales climbed 3.4%.

Maxim Medical

(MAM)

posted third-quarter earnings of 41 cents a share, missing the four-analyst estimate of 45 cents but up from the year-ago 37 cents.

Mitchell Energy

(MND.A)

reported second-quarter earnings of 39 cents a share, missing the two-analyst estimate by a penny, but better than the year-ago 10-cent loss.

Sears

(S) - Get Report

was got hammered after slicing its third-quarter and full-year earnings estimates. The company, which posted soft same-store sales, is expected to report third-quarter earnings of 63 to 67 cents a share, greatly missing the consensus estimate of an 82-cent gain.

Donaldson Lufkin & Jenrette

downgraded the stock to a market perform rating from a buy.

Wal-Mart

(WMT) - Get Report

announced an 8.7% increase in same-store sales.

Analyst actions

Bear Stearns

raised its rating on

About.com

(BOUT) - Get Report

to a buy from an attractive.

PaineWebber

rolled out coverage of

Go2Net

(GNET)

with an initial buy rating.

Merrill Lynch

raising its rating on

Repsol

(REP)

to an intermediate accumulate from a neutral, maintaining a long-term buy.

Morgan Stanley boosted

Sun International Hotels

(SIH)

rating to a strong buy from a market outperform.

Miscellany

Anheuser-Busch

(BUD) - Get Report

said it does not anticipate a huge Budweiser recall to cause a significant cost impact on the company. Vice president and managing director for Anheuser-Busch European Trade William McNulty said that although he did not have a cost estimate for the recall, he did not expect the company to assume a charge.

Boeing's

(BA) - Get Report

biggest union said that fears of a strike have been eased after members unanimously favored a three-year contract mapped out by the union and management negotiators last week. According the contract, Boeing would not let go workers due to shifting labor to subcontractors or other Boeing facilities. Analysts said the changes are necessary to ensure profitability and competition with Airbus with Boeing's shrinking commercial airplane deliveries.

IBM

(IBM) - Get Report

unveiled its new programmable communications processor in an effort to become the world's largest communications microelectronics supplier by 2003. IBM said the processors are made to be enhanced by software rather than hardware upgrades. To continue new application development, the company is uniting with third parties to set software standards. On Tuesday, IBM announced a pact with

Cisco Systems

(CSCO) - Get Report

to swap some of its network equipment lines for a five-year deal to provide Cisco with network components worth about $2 billion.

Microsoft

(MSFT) - Get Report

announced on its Web site that it has tapped the former

SGI

(SGI)

CEO Richard Belluzzo to become a group vice-president. The company plans to make a formal announcement this afternoon, explaining Belluzzo's new role in Microsoft's Internet strategy.

TheStreet.com

broke the news of Belluzzo's move to Microsoft in a

story last month.

Republic New York's

(RNB)

stock price stumbled after

The Wall Street Journal

reported that U.S. prosecutors and regulators are probing its securities division for "allegedly inflating the net asset value of an investment fund in which Japan investors may have placed up to $1 billion."

Vodafone Airtouch

(VOD) - Get Report

seemed to be losing its breath today. Like other ADRs, the British telecom service provider traded down throughout the session, showing caution following the Fed comments that alluded to a possible rate hike. Vodafone declined 4 to 194 1/2.