Skip to main content

Tuesday, January 25, 1999

Nasdaq swings to a record high, and several drug companies' earnings knock out estimates.


U.S. stocks rode an afternoon rally to close solidly higher, led by the tech-laden

Nasdaq Composite Index

, which ended the session at a new record high.

The Nasdaq jumped 64.16 to 2,433.47, and the

Dow Jones Industrial Average

gained 121.58 to 9,324.58. The

S&P 500

rose 18.33 to 1,252.31, while the small-cap

Russell 2000

picked up a meager 3.22 to 425.33. Internet Sector

index added 23.51 to close at 520.10.

European bourses generally closed modestly higher.

Asian markets also closed up, as Japan's

Nikkei 225

picked up 173.20 to close at 14,382.01, while Hong Kong's

Scroll to Continue

TheStreet Recommends

Hang Seng

gained 10.33 to 9,509.83.

For more markets action and news, click



BP Amoco


said it plans to offer low-sulfur gasoline in 39 U.S. cities within two years.

Office-products manufacturer

Avery Dennison

(AVY) - Get Avery Dennison Corporation Report

will slash 1,500 jobs and close eight plants.

Fabric maker

Burlington Industries


said it will cut 2,900 jobs and close seven plants to reduce capacity in the face of a flood of low-priced garments from Asia.


(CD) - Get Chindata Group Holdings Limited Report

has filed suit against

Ernst & Young

, charging it with negligence in its failure to detect the highly publicized book-cooking that scandalized Cendant last year.

Shares of


(MCD) - Get McDonald's Corporation Report

shot up after the company reported earnings matching Street estimates and announced a 2-for-1 stock split. The stock lately was up 2 1/2 to 78 3/8.

The druggernauts rolled today as


(MRK) - Get Merck & Company Inc. Report

American Home Products






Johnson & Johnson

(JNJ) - Get Johnson & Johnson Report

all posted fourth-quarter numbers matching or beating estimates.

Automotive-component manufacturer



has joined


(FMO) - Get Fiduciary/Claymore Energy Infrastructure Fund Report

in the bidding war for the U.K.'s

LucasVarity PLC


. LucasVarity said it favors TRW's offer, the more generous of the two.

Packaging and auto-parts manufacturer


(TEN) - Get Tenneco Inc. Class A Voting Report

announced that it is selling a majority stake in its containerboard business to private equity company

Madison Dearborn Partners

for $2 billion.

For more news on companies and stocks, click





is expected to announce plans to spin off its

AltaVista Search Services

, according to

The Wall Street Journal


On-line auctioneer


(EBAY) - Get eBay Inc. Report

beat estimates for fourth-quarter earnings and announced a 3-for-1 stock split.


(GTE) - Get Gran Tierra Energy Inc. Report

said it has hired

Bear Stearns


to help it sell

GTE Government Systems

, its telecom and defense systems subsidiary.


(IBM) - Get International Business Machines Corporation Report

matched rival


(MSFT) - Get Microsoft Corporation Report

by setting its own 2-for-1 stock split today. See how


James Cramer

reacted to the news.


(MSFT) - Get Microsoft Corporation Report

said it will license its

Microsoft Network

online communications technology to



in exchange for making Compaq's

AltaVista Search

the main search engine on Microsoft Network. Shares of



, whose search engine will be displaced by AltaVista, were lately down 18 3/4 to 129 1/2 on the news.

For more tech news and commentary, click




Finance Ministry

today said that long-delayed plans to partially privatize

Air France

will move forward in February, when 17.3% of the company's shares will be priced for public offering.

Turkish holding company

Akmaya Sanayi Ve Ticaret

has acquired 65% of the Romania's


oil refinery for $725 million.

For the first time in 30 years, the best-selling car in Japan is not the

Toyota Corolla

. The

Suzuki Wagon R

minicar now holds that honor, with sales of 206,548 last year in Japan.

For more international news and commentary, click


General News

House managers will ask the Senate for permission to call

Monica Lewinsky


Vernon Jordan


Sidney Blumenthal

as witnesses, according to

The Associated Press



Conference Board

said its consumer confidence index rose 0.9% in January, reaching its highest level since August.

U.S. military officials have confirmed

Iraqi News Agency

reports of civilian casualties from an American missile attack in southern Iraq.

Labor Department

figures show that U.S. union membership grew by more than 100,000 in 1998, although the overall percentage of workers who belong to a union dropped amid strong job growth.

The U.S. government ran a $5.4 billion deficit for the month of December, compared with a $13.6 billion surplus the previous year. The

Treasury Department

said that an irregular Social Security payment schedule accounted for the deficit.


Retailer and



J. Peterman

has filed for Chapter 11 bankruptcy.


Patrick Roy

has signed a two-year contract extension with the

Colorado Avalanche