Publish date:

Tuesday, June 1, 1999

Inflation fears fuel flight from growth and tech. Finova Capital names a prez, and Intel plans to buy Dialogic.


Investors didn't need another reason to stay out of this volatile, trendless market. But they got one anyway today, in the form of a too-hot-to-handle

National Association of Purchasing Management

index (see below). Ensuing inflation fears sent money out of growth and technology and into cyclicals and transports.


Nasdaq Composite Index

plummeted 57.93 to 2412.59; the

Dow Jones Industrial Average

added 36.52 to 10,596.26; the

S&P 500

lost 7.51 to 1294.33; the smallish-cap

Russell 2000

shed 1.20 to 437.48; and Internet Sector

index scurried down 23.78 to 556.86.

The big European indices finished mixed, with France's


and Germany's


losing 0.8% and 0.9%, respectively, while the London


closed up about 0.4%. In Brazil, the volatile


was off about 0.3% at in afternoon trading.

Asian markets were strong overnight. Hong Kong's

Hang Seng

added 216.44, or 1.8%, to finish at 12,363.56, while Tokyo's


advanced 296.85, or 1.8%, to 16,408.50 on rumors, since downplayed, that Prime Minister

Keizo Obuchi

was planning to eliminate Japan's consumption tax.

More markets action and news is available in


Markets section.


AmSouth Bancorp


, Alabama's third-largest bank, is buying Nashville, Tenn.-based regional bank holding company

First American

(FAM) - Get First Trust / Aberdeen Global Opportunity Income Fund Report

for about $6.3 billion in stock.

The staff of the

Federal Trade Commission

will recommend that the full commission block

Barnes & Noble's

(BKS) - Get Barnes & Noble, Inc. Report

$600 million acquisition of book distributor

Ingram Book Group

on antitrust grounds, according to a wide array of reports citing people close to the case.

Specialty chemical makers

Crompton & Knowles

(CNK) - Get Cinemark Holdings, Inc. Report



(WIT) - Get Wipro Limited Sponsored ADR Report

announced plans to merge. Under the deal, Crompton & Knowles shareholders would own 55% of the resulting company.

Finova Capital

(FNV) - Get Franco-Nevada Corporation Report

named Matthew Breyne president and COO. Breyne, previously an executive vice president, was also elected to Finova's board.

Canadian funeral home and cemetery operator



has filed for bankruptcy in the U.S. and Canada and is seeking to reorganize its debt.

Entertainment promoter

SFX Entertainment


agreed to buy most of the assets of Broadway theater company


for cash, deferred payment rights and SFX warrants. Terms weren't disclosed, though a number of reports estimate the deal's value at more than $100 million.

More news on companies and stocks is available in


Stock News section.


America Online


set plans to buy Internet music delivery companies

Spinner Networks



TheStreet Recommends

for about $400 million.

American Greetings

(AM) - Get Antero Midstream Corp. Report

has formed a new Internet subsidiary -- -- out of its electronic marketing division. American Greetings also said part of the unit may be spun off later this year.

Salomon Smith Barney



(AAPL) - Get Apple Inc. (AAPL) Report

to buy from neutral and upped its 12-month price target to 55 from 42.



agreed to buy online bank

Telebanc Financial


for about $1.8 billion in stock.


(INTC) - Get Intel Corporation (INTC) Report

set plans to buy telecom equipment maker



in a $780 million cash tender offer.

Merrill Lynch


set plans to launch an online trading business by the end of the year. Merrill said it will offer its customers two options: Internet trading for $29.95 a pop, or unlimited online trading for a $1,500 minimum annual fee.


covered the move in

a story this morning.

Qwest Communications International


and a group of investment funds will sink $251 million into wireless Internet service provider

Advanced Radio Telecom


. Qwest itself will receive a 19% stake for $90 million.

More tech news and commentary is available in


Tech Stocks section.

General News


National Association of Purchasing Management

released its monthly

Purchasing Managers' Index

, which came in at 55.2 in May, besting economists' expectations of 53.3 and up from April's 52.8 reading. An index reading above 50 signals expansion in the manufacturing sector.

Yugoslav Foreign Minister Zivadin Jovanovic sent a letter to German Foreign Minister Joschka Fischer accepting the general principles for a Kosovo peace accord -- "including the presence of

United Nations

troops" -- set by the

Group of Eight

, according to the private


news agency. But U.K. Defense Secretary George Robertson said Yugoslavia must also agree to the inclusion of


troops in a peacekeeping force. Meanwhile, the alliance continued its escalated bombing campaign.


Continuing to divest itself of nonpharmaceutical interests ahead of its $22 billion merger with


(RP) - Get RealPage, Inc. Report




set plans to sell part of its 45% stake in specialty chemical maker



More international news and commentary is available in


International section.


Canada's last representative in the


playoffs was eliminated last night when the

Buffalo Sabres

defeated the

Toronto Maple Leafs

4-2 to take the Eastern Conference championship in five games. The Sabres will play either the

Colorado Avalanche

or the

Dallas Stars

for the Stanley Cup.

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