A solid session for U.S. stocks turned soft at midafternoon, and major proxies closed modestly lower while transportation and financial stocks outperformed the broader market. The

Dow Jones Industrial Average

lost 33.85 to 9693.76; the

S&P 500

lost 2.89 to 1279.84; the

Nasdaq Composite Index

lost 4.68 to 2392.94; the small-cap

Russell 2000

dropped 0.86 to 399.20; Internet Sector

index picked up 2.54 to close at 568.89.

Major European bourses were flat, while Asian markets rallied after sluggish performances yesterday. Japan's


surged 317.65 to 15,096.70, and Hong Kong's

Hang Seng

skyrocketed 268.96 to 10,532.95.

For more markets action and news, click



National retail discount chain

Edison Brothers Stores


said it is filing for Chapter 11 bankruptcy protection.

General Electric

(GE) - Get Report




General Electric Equity

have taken a 20% stake in home shopping network



for about $56 million.

Merrill Lynch


and the

Massachusetts Institute of Technology

yesterday announced a $20 million research alliance, three-quarters of which will go toward a project more closely combining "financial engineering" -- the computer analysis of financial data-- with the computer sciences.

RJR Nabisco Holdings


announced today that it is selling its international tobacco business for nearly $8 billion to

Japan Tobacco

, and will spin off the remainder of its tobacco interests.

For more news on companies and stocks, click


General News


Labor Department

reported revised figures showing U.S. productivity increased at a monster 4.6% annual rate for final quarter of last year.

Taiwanese computer scientist

Wen Ho Lee

has been sacked from his job at Los Alamos National Laboratory for alleged security violations associated with the leaking of nuclear design technology secrets to the Chinese government.

Fighting continues between ethnic Albanian rebels and Serbian forces near the Macedonian border, even as U.S. envoys prepare to meet with Yugoslav President

Slobodan Milosevic



It just keeps getting worse and worse.

Advanced Micro Devices

(AMD) - Get Report

readied investors for what it called "significant" first-quarter losses associated with manufacturing problems with its flagship K6 chip.


reported on the news this morning.




David Wetherell

has stepped down from the



board of directors, in protest of the acquisition of that company by

USA Networks

(USAI) - Get Report



reported on Wetherell's move today.


Seattle Times

may have

spoken too soon with its report that


(MSFT) - Get Report

is in talks with the

Justice Department

about a possible settlement of its antitrust case.


has reported that no such talks have taken place, citing a source close to the situation.

For more tech news and commentary, click



Dutch food king

Royal Ahold

bought the U.S. supermarket chain


for about $1.7 billion, which includes about $1.5 billion in debt.

Saab Automobile

CEO Robert Hendry said that 50% shareholder

General Motors

(GM) - Get Report

will start negotiating in July to buy the other half of the Swedish car company. When GM bought its stake in Saab back in 1989, it also acquired an option to buy the remainder for the six months beginning on July 31.


(SNE) - Get Report

announced a major restructuring plan today. Over the next four years, the consumer electronics giant will cut 17,000 jobs and reduce the number of its manufacturing plants from 70 to 55. Sony will also take full control over affiliates

Sony Chemicals


Sony Precision Technology


Sony Music Entertainment


For more international news and commentary, click



Steven Tyler

has filed a lawsuit trying to force ex-wife Kathleen Tallarico to return nude photos of the aging


rocker. Tyler's increasingly precarious sex-symbol status should remain intact for a while yet: State Supreme Court Justice Walter Tolub yesterday granted a temporary restraining order preventing the photos from being published until the trial has run its course.

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