Tuesday, February 9, 1999

Selloff continues in U.S. markets; Lycos falls as market reacts to its USA Networks deal; UBS can't find a buyer.
Publish date:


U.S. stocks had gone from bad to worse at midday. Blue-chips traded lower, while Internet issues

dropped sharply along with shares of



, lately down 27 to 100 1/4 (see below). The Net selloff gave the tech-heaped

Nasdaq Composite Index

yet another reason to spiral.

National Association of Securities Dealers


Frank Zarb

sent a letter to NASD members emphasizing the need to make day traders "understand what they are getting into."

European bourses closed lower, while Asian markets closed mixed, as Japan's


shed 89.83 to 13,902.66, while Hong Kong's

Hang Seng

gained 104.89 to 9,244.49.

For more markets action and news, click



AMR's American Airlines


said it will sue its pilots union if it doesn't call off its "sickout" by

President's Day


SmithKline Beecham's

(SBH) - Get Report

slimming down. The pharma giant announced the sale of pharmacy benefits unit

Diversified Pharmaceutical Services


Express Scripts


for $700 million in cash, and the sale of its clinical labs unit to

Quest Diagnostics

(DGX) - Get Report

for $1.27 billion.

Move over, Addison and Steele.


(SBUX) - Get Report


Time Warner



Time Inc.

will jointly publish a magazine called




will be sold at the modern-day


-- Starbucks' North American coffeehouses.

For more news on companies and stocks, click



You knew Lycos wouldn't be lonely for long.

USA Networks

(USAI) - Get Report

announced that it will buy the Web portal, combine it with its

Home Shopping Network

and name the new company

USA/Lycos Interactive Networks


MCI WorldCom


said it has signed a 10-year, $1.5 billion telecommunications service deal with the

Defense Department


For more tech news and commentary, click



Swiss banking behemoth


says it can't find a buyer for 25 retail branches that Switzerland's competition commission required it to sell as part of last year's merger of

Union Bank of Switzerland


Swiss Bank

. Swiss regulators say they are looking into the matter.

Raising funds under the rising sun:

J.P. Morgan

said that in 1999, Japan will account for more than 90% of net government bond issuance among the world's top 18 economies.

For more international news and commentary, click


General News

Labor Department

figures show that U.S. workers' productivity increased a healthy 2.21% in 1998.

Fighting continues between Ethiopia and Eritrea over the unmarked border between those countries.

Weeks after Iran's intelligence ministry admitted its agents were involved in the killing of two dissidents, that nation's Minister of Intelligence

Qorbanali Dorri-Najafabadi

has resigned.


Atlanta Falcons receiver

Tony Martin

appeared in a Miami court to face money-laundering and conspiracy charges associated with his relationship to "the mayor of Opa-Locka," drug dealer

Ricky Brownlee


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