Wednesday, January 6, 1999

Stocks continue rallying to new highs, and NBA action gets ready to be FANtastic again.
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Markets

U.S. stocks held on to record gains at midday, with blue-chips, tech stocks and small-caps all advancing strongly.

European bourses closed higher, and Asian markets boomed across the board Wednesday, with Hong Kong's

Hang Seng

up 342.74 to 10,233.80 and Japan's

Nikkei 225

up 235.72 to 13,468.46.

For more markets action and news, click

here.

Companies

Cigna

(

(CI) - Get Report

CI:NYSE) reportedly is in talks to sell its property-casualty business to Bermuda insurer

Ace

(

(ACL)

ACL:NYSE) for more than $3 billion.

Kellogg

(

(K) - Get Report

K:NYSE) named Carlos Gutierrez to replace Arnold Langbo as CEO, effective in late April.

Shares of

Nike

(

(NKE) - Get Report

NKE:NYSE) are spiking upward on news that the

National Basketball Association

and the player's union have reached an agreement that will save a portion of the 1998-99 season.

Northrop Grumman

(

(NOC) - Get Report

NOC:NYSE) said it will take a $125 million charge in the 1998 fourth quarter and estimated that 1999 profits will be as much as 20% beneath analysts' figures.

Phillips Petroleum

(

(P)

P:NYSE) announced that it will eliminate 1,400 jobs in 1999. The company also said that a $339 million charge will contribute to a net loss for the 1998 fourth quarter.

For more news on companies and stocks, click

here.

Tech

Amazon.com

(

(AMZN) - Get Report

AMZN:Nasdaq) posted fourth-quarter sales of $250 million, up from $66 million a year ago.

Apple

(

(APPL)

APPL:Nasdaq) said it would post its fifth straight quarterly profit.

Modem manufacturer

Hayes

(

(HAYZQ)

HAYZQ:Nasdaq) has ceased operations and is preparing for liquidation.

Mindspring Enterprises

(

(MSPG)

MSPG:Nasdaq) has agreed to buy the Internet access business of

ICG Communications'

(

(ICGX)

ICGX:Nasdaq)

Netcom

unit for $245 million.

German business software firm

SAP

(

(SAP) - Get Report

SAP:NYSE ADR) said its fourth-quarter pretax profit fell because of slack demand in Japan and Russia.

Science Applications International

is set to sell about 38% of its stake in

Network Solutions

(

(NSOL)

NSOL:Nasdaq).

For more tech news and commentary, click

here.

International

Finance Minister Xiang Huaicheng said China will try to fend off recession by increasing government spending on public works.

The Swedish government announced it will divest 7% of

Pharmacia & Upjohn

(

(PNU)

PNU:NYSE), citing favorable market conditions.

Samsung Group

said it will increase its spending by one-third this year in expectation of a strong economic recovery in 1999 by South Korea.

U.K. mobile telecom firm

Vodafone

has officially joined

Bell Atlantic

(

(BEL)

BEL:NYSE) in the market to acquire

AirTouch Communications

(

(ATI) - Get Report

ATI:NYSE), with a competing offer of $54 billion.

For more international news and commentary, click

here.

General News

Senate Majority Leader

Trent Lott

(R, Miss.) announced that the impeachment trial of

President Clinton

will begin tomorrow.

The government called its final witness yesterday in the antitrust trial against

Microsoft

(

(MSFT) - Get Report

MSFT:Nasdaq).

Former Khmer Rouge general

Khem Ngun

warned that Cambodia could reenter civil war if the government reneges on Prime Minister

Hun Sen's

promise of immunity to two high-ranking Khmer Rouge defectors.

The civilian death toll in antimilitary riots in Indonesia has reached 17.

Elsewhere

The

Baseball Writers Association of America

yesterday elected

Nolan Ryan

,

George Brett

and

Robin Yount

to the

Baseball Hall of Fame

.