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Tuesday, Sept. 28, 1999

Island and MarketXT sitting in a tree, t-r-a-d-i-n-g. The pair of late-night exchanges saw tech continue to dominate volume, ringing in some decent gains.

After-Hours Markets

Many stocks took their cue from the


and danced in the dark on

Island ECN's

after-hours trading. Fiery

Foundry Networks


, hot off today's IPO, was up 10 1/2, while



was up 4 1/8.

Global Crossing





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were all up more than a point on the exchange.

Elsewhere in cyberspace,


toyed around with leader

Toys 'R' Us


, unchanged on 2,000 shares.

Island ECN, owned by Datek Online, offers trading, mainly in Nasdaq-listed stocks, from 8 a.m. to 8 p.m. EDT. Prior to Sept. 15 Island offered trading from 8 a.m. to 5:15 p.m. EDT


MarketXT, formerly Eclipse Trading, offers after-hours trading to retail clients of Morgan Stanley Dean Witter'sundefinedDiscover Brokerage and Mellon Bank'sundefinedDreyfus Brokerage Services. Clients can trade 200 of the most actively traded New York Stock Exchange and Nasdaq Stock Market issues, 6 p.m. to 8 p.m. EDT Monday through Thursday.

updates the most active issues on both MarketXT and Island ECN in Got a Minute? and in the Evening Update.


Eric Gillin

Day-Session Report

Major proxies bounced off their intraday lows and ended on a slightly better note. The

Dow Jones Industrial Average

recovered ground, closing down 27.9 to 10,275 after a drop of more than 200 points. The

Nasdaq Composite Index

was also looking a little more chipper, narrowing a more-than-50-point loss to 5.5, and ending the day at 2756. However, Internet Sector

index managed a gain, up 2.30 to 631.30.

The big European indices also ended the trading day in the red, with France's


off 1.2%, while Germany's

Xetra Dax

lost 2.3% and London's


dropped 1.2%.

Asian markets closed higher as Hong Kong's

Hang Seng

gained 84.47, or 0.7%, to 12,844.93, and Tokyo's


jumped 504.64, or 3%, to 17,325.70.

Mergers, Acquisitions and Joint Ventures

America Online


had a lot going on today. It entered a $21 million deal with



CBS MarketWatch

will provide financial news to AOL services.

AOL also said it is seeking partnerships with companies in Hong Kong and sees promising growth in the China Internet business.


Future Network

said it sold 182,492 shares in AOL, realizing $18.3 million. Future acquired the stake as part of its acquisition of

Imagine Media

in June.

Anadarko Petroleum


signed a $770 million deal with Algerian state-owned oil and gas firm


to quadruple production from an Algerian oilfield.




Cyprus Amax


amended their merger agreement to permit each company to explore all strategic alternatives.



is expected to announce an equipment purchase from merger partners

General Instrument





that could be valued at up to $1 billion, the


said. The paper said AT&T plans to buy up to 2 million more cable TV set-top boxes from General Instrument and 1 million cable modems from Motorola.

Chase Manhattan


said it would buy

Hambrecht & Quist


for about $50 a share in cash, or about $1.35 billion, confirming a story in the

The Wall Street Journal

. The acquisition of Hambrecht, which has underwritten major technology IPOs such as





, will give Chase the stock underwriting business it has long sought.

Electronic Data Systems


said it signed an eight-year contract extension with

Continental Airlines


worth $1.5 billion.

El Paso Energy


said it plans to divest some assets following its acquisition of



once it signs a consent decree with the

Federal Trade Commission


Tyco International


is buying

Siemens Electromechanical Components

for about $1.1 billion in cash as part of Siemens' massive restructuring, which involves selling off nine divisions.

Earnings/Revenue Reports and Previews

Erie Indemnity


will take a charge of about 1 cent a share in the third quarter on losses from its reinsurance pooling arrangement with

Erie Insurance Group

caused by Hurricane Floyd.



reported a fourth-quarter loss of 87 cents a share, wider than the two-analyst expectation of a loss of 84 cents and a year-ago loss of 80 cents a share. Ferrellgas said it typically experiences seasonal losses in the fourth quarter.

Fortune Brands


said it expects to post double-digit earnings-per-share growth, excluding charges for the third quarter and the full year.

Frontier Airlines


said it will miss second-quarter earnings estimates due to maintenance costs and late delivery of aircraft. The three-analyst estimate calls for 48 cents a share.

Morrison Management Specialists


reported first-quarter earnings of 30 cents a share, in line with the three-analyst estimate and up from a year-ago 26 cents.

Offerings and Stock Actions

Paul Allen's

Charter Communications

plans to offer 170 million shares in an estimated price range of $17 to $19 a share. The company intends to raise $2.9 billion in the IPO and plans to use the money for acquisitions, among other things.


filed with the

Securities and Exchange Commission

to offer 2.5 million shares of common stock. Another 375,000 shares could be sold under an overallotment option.

CSS Industries


said its board approved a stock buyback of an additional 500,000 shares.

Computer networking company

Foundry Networks


soared 131, or 524%, to 156 1/4 on its first day of trading after being priced at $25 a share.

Magainin Pharmaceuticals


said it filed for a public offering of 5 million shares of common stock. The company, which develops drugs for cancer and other diseases, proposed to place and sell the shares. Magainin already has 22.9 million shares outstanding.

Playboy Enterprises


said it will make a public offering early next year of a minority interest in its online venture,

Playboy Online


Suiza Foods


said it approved an additional $100 million for its share buyback plan.

Analyst Actions

Warburg Dillon Read




to buy from strong buy.

Merrill Lynch

raised its rating on

Barrick Gold


to long-term buy from accumulate and on

Homestake Mining


to near-term accumulate from neutral.

Morgan Stanley Dean Witter

started coverage of

Park Place Entertainment


with a strong buy rating and a price target of 17.

Banc of America

raised its rating on oil companies

Burlington Resources





to buy from market perform.


started coverage of


with a buy rating.

PaineWebber cut

Micron Electronics


to attractive from buy.

First Albany

started coverage of

Neon Systems


with a buy rating and a price target of 36.




said its president and CEO Gert Munthe will resign by the end of the year, primarily for personal reasons.



said it would embark on a $939 million restructuring program to transform itself into an Internet-based firm.

Nortel Networks


unveiled a new network technology, which it said will avoid information traffic jams, for the Internet. The company said its OPTera Packet Solution will unite optical and packet networks into a single infrastructure that can carry all types of traffic.


Two New Orleans thieves rapped their way into jail after cops found an incriminating recording in their car. Thirty-five-year-old Marshall G. Meggs and 17-year-old Samuel Coppure Jr. were caught trying to make off with $700 worth of gardening equipment from the Big K mart in Slidell, La. Along with a bag of marijuana, police found a microcassette recorder in their car with a freshly made collection of rhymes in which the two men sang about burglaries at nearby stores, narcotics dealings and some talk of a murder in New Orleans. Police have not yet determined whether the two men's activity goes beyond garden-variety theft.