Tuesday, Feb. 23, 1999

Blue-chips shrank from the 'overvalued' word, while tech and Net sectors kept on truckin'.
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Markets

There are certain things you just don't say. It's a matter of

taste

, for goodness sake.

Wall Street blushed this morning when

Fed

Chairman

Alan Greenspan

raised the specter of possible overvaluation before the

Senate Banking Committee

(see below). But it was the blue-chips that went flatter than a can of

R.C. Cola

at mention of the "O" word. They closed modestly lower, while the distended tech and Internet sectors sucked it up for the second straight day, posting strong gains.

The

Dow Jones Industrial Average

lost 8.26 to 9544.42, and the

S&P 500

fell 0.99 to 1271.15 and the small-cap

Russell 2000

gained a meager 1.18 to a round 399.00. The tech-centric

Nasdaq Composite Index

jumped 32.65 to 2374.66, while

TheStreet.com Internet Sector

index picked up 23.55 to close at 514.53.

European bourses closed higher on the heels of yesterday's rally on Wall Street. Piggybacking Asian markets skyrocketed, as Hong Kong's

Hang Seng

jumped 204.65 to 9433.99 and Japan's

Nikkei

gained 243.98 to 14,500.65.

For more markets action and news, click

here.

Companies

America West Holdings

(AWA)

rejected

UAL

(UAL) - Get Report

unit

United Airlines'

takeover offer, and said it would no longer entertain offers from other companies interested in acquiring the airline.

Cable television operator

Adelphia Communications

(ADLAC)

agreed to buy

FrontierVision Partners

for $981.4 million in cash and stock, and $1.11 billion in debt.

For more news on companies and stocks, click

here.

Tech

The game of musical Internet analyst chairs continues: Henry Blodget is leaving

CIBC Oppenheimer

to fill the void at

Merrill Lynch

created by Jonathan Cohen's departure for

Wit Capital

. Blodget participated in

TSC's

Ne t Stock Summit on Friday.

Data communications equipment maker

3Com

(COMS)

has agreed to buy

NBX

, maker of communications systems for voice and data networks, for $90 million cash plus stock options.

Highflying Internet company

America Online

(AOL)

said German media firm

Bertelsmann

sold 880,000 shares of AOL, lowering its stake to about 1.7% from 1.9%.

For more tech news and commentary, click

here.

General News

Ethnic Albanians in Kosovo agreed to sign a peace agreement with Serbians within two weeks, according to

State Department

spokesman James Rubin.

Fed Chairman Alan Greenspan concluded his

Humphrey-Hawkins

te stimony before the Senate today. Greenspan prognosticated, "Our economy's performance should remain solid this year, though likely with a slower pace of economic expansion and a slightly higher rate of overall inflation than last year."

Two U.S. warplanes each dropped a 2,000-pound bomb on an Iraqi command installation in retaliation for anti-aircraft fire.

International

Rupert Murdoch's British Sky Broadcasting

(BSY)

is in merger talks with France's

Canal Plus

in a deal that would create Europe's largest television company, according to

The Wall Street Journal

.

Italy's stock market regulator,

Consob

, declared Olivetti's $58 billion takeover bid for

Telecom Italia

(TI)

invalid because of unresolved regulatory issues raised by the deal. The ruling jeopardizes German engineering and telecom firm

Mannesmann's

bid to buy Olivetti's stakes in mobile phone company

Omnitel

and fixed-line firm

Infostrada

. Meanwhile, Italian Communications Undersecretary Michele Lauria said Telecom Italia must expand the weak shareholder core that makes it vulnerable to takeovers.

For more international news and commentary, click

here.

Elsewhere

Minnesota Governor

Jesse Ventura

told a

National Press Club

audience that "there will be more Jesse Venturas on the horizon" if Democrats and Republicans "don't wake up from their bipartisan bickering." The exact number of clones, and the details of their itinerary, were left unspecified.

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

really

dumb question? Even better. Send it to

MonEmailbag@thestreet.com, and

TSC

columnist

Herb Greenberg

and I will do our best to answer. 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.

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