Tuesday, May 11, 1999

Tech blisses out, while the Dow closes modestly up; Tandy chief retires early; Cisco set to split after beating estimates.
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Markets

Technology wasn't watching the bond market today. The

Nasdaq Composite Index

put together its third consecutive strong session since

last Thursday's big selloff, and with stiffer resolve than it's shown in a while. The normally volatile Comp didn't waver much in its upward march today, finally closing up 40.21 to 2,566.60. Net stocks contributed bigtime to the party,

TheStreet.com Internet Sector

index rising 18.76 to 654.09. The small-cap

Russell 2000

surged another 4.96 to 446.81.

Blue-chip action was choppy, and the cyclicals weren't helping much. The

Dow Jones Industrial Average

eked out 18.90 to 11,026.15. The

S&P 500

surged 15.31 to 1355.61.

The 30-year Treasury bond closed sharply lower. (For more on the fixed income markets, see today's

Bond Focus.)

The big European indices closed mildly positive. Frankfurt's

Dax

gained 0.8%, London's

FTSE 100

picked up 0.5% and Paris'

CAC

rallied late to close fractionally higher. Asian markets let out some steam overnight, as Hong Kong's

Hang Seng

dropped 288.83, or 2.2%, to 12,874.37, and Tokyo's

Nikkei

lost 233.8, or 1.4%, to 16,743.18.

For more markets action and news, click

here.

Companies

Electric and gas company

Conectiv

(CIV)

set a restructuring under which it will buy back 14% of its common stock, cut its dividend to 22 cents from 38.5 cents and sell some power plants.

Immunex

(IMNX)

plans to seek federal approval to use its

Enbrel

drug in treating patients with early, active rheumatoid arthritis. Enbrel is already approved for later-stage rheumatoid arthritis.

Smithkline Beecham

(SBH) - Get Report

said that the

Food and Drug Administration

has approved

Paxil

for use in treating "social anxiety disorder," or extreme shyness. No other drug has been approved for this disorder.

RadioShack

chain parent

Tandy

(TAN) - Get Report

said that Chairman and former CEO John Roach will retire on May 20, a year earlier than originally planned. CEO Leonard Roberts will succeed him.

U S West

(USW)

named CEO Solomon D. Trujillo chairman. He replaces Richard McCormick, who is retiring.

UtiliCorp

(UCU)

is expected to announce a deal to acquire fellow Missouri utility

Empire District Electric

(EDE)

for about $505 million in cash and stock, according to

The Wall Street Journal

, citing unnamed company officials.

For more news on companies and stocks, click

here.

Tech

Morgan Stanley Dean Witter

upgraded

America Online

(AOL)

to strong buy from outperform. Separately, AOL announced that it has signed deals to develop its AOL TV product with four partners:

Hughes Electronics

(GMH)

units

DirecTV

and

Hughes Network Systems

,

Philips Electronics

(PHG) - Get Report

and

Network Computer

.

Cisco System

(CSCO) - Get Report

set a 2-for-1 stock split after posting third-quarter earnings of 38 cents a share, a penny above the

First Call

consensus.

Former and current

Motorola

(MOT)

executives have made an unsolicited $1.6 billion bid for the company's semiconductor components unit, urging the board to make a decision soon.

National Semiconductor

(NSM)

said AOL will use its MediaGX microprocessor in its new Web TV-set-top boxes.

Qwest Communications

(QWST)

announced a deal to sell Web-based services to businesses around the world with

Hewlett-Packard

(HWP)

and

SAP America

, the U.S. unit of Germany software company

SAP

(SAP) - Get Report

.

Yahoo!

(YHOO)

launched

Yahoo! Radio, 10 Internet radio stations with continuous music programming, in partnership with

broadcast.com

(BCST)

, which Yahoo! is acquiring, and

Spinner.com

.

For more tech news and commentary, click

here.

General News

The

Labor Department

released figures showing U.S. productivity increasing 4% during the first quarter of 1999, a bit cooler than the previous quarter's 4.6% clip but above the forecasted 3%.

Chinese media for the first time reported American and

NATO

apologies for the mistaken embassy bombing in Belgrade, but Chinese officials discounted those apologies as "indifferent" and "dismissive." Separately, Russian envoy

Viktor Chernomyrdin

met with Chinese President

Jiang Zemin

to discuss Russian efforts to end to the conflict in Kosovo, later telling reporters that the bombing must stop before peace talks can begin.

International

Olivetti

is getting ready to sweeten its bid for

Telecom Italia

(TI)

in a big way. Olivetti set plans for a massive bond issue -- an issue speculated to be possibly twice as large as

AT&T's

(T) - Get Report

record $8 billion sale -- to fund its takeover offer. Telecom Italia has 11 days left to decide between Olivetti's and

Deutsche Telekom's

(DT) - Get Report

offers.

For more international news and commentary, click

here.

Elsewhere

Children's author and illustrator

Shel Silverstein

was discovered dead at his Key West, Fla., apartment, apparently of a massive heart attack. He was 66.

Apple Records

yesterday announced plans to put out a previously unreleased

Beatles

single later this year. The B-side will feature a never-before-heard recording of

John Lennon

enjoying a "quite tasty" ham sandwich.

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