Wednesday, January 6, 1999

A gigantic market day winds down with a flourish; Michael Eisner's pay envelope gets a little smaller.
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Markets

U.S. stocks flew out of the gate and never looked back, as blue-chips and tech stocks drove the

Dow Jones Industrial Average

, the

S&P 500

and the

Nasdaq Composite Index

to record highs.

The Dow gained 233.78, or 2.5%, to 9544.97; the Nasdaq leapt 69.35, or 3.1%, to 2320.62; and the S&P 500 jumped 27.57, or 2.2%, to 1272.35.

TheStreet.com Internet Sector

index vaulted 33.40, or 8.1%, to 445.35, while the small-cap

Russell 2000

picked up a more modest 5.71, or 1.4%, to 427.80.

European bourses closed higher.

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.

Disney

(

(DIS) - Get Report

DIS:NYSE) Chairman and CEO

Michael Eisner

received a $5 million bonus for fiscal 1998, down 49% from the previous year in accordance with the company's sluggish 1998 performance.

Former

Clinton

Chief of Staff

Erskine Bowles

will join buyout firm

Forstmann Little

as a partner.

Shares of

Nike

(

(NKE) - Get Report

NKE:NYSE) spiked upward on news that the

National Basketball Association

and the players 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

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.

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.

South Korean

chaebol

LG Group

agreed to sell its stake in semiconductor unit

LG Semicon

to

Hyundai Group's Hyundai Electronics Industry

.

Shares of

Gucci Group

(

(GUC)

GUC:NYSE) skyrocketed after luxury goods maker

LVMH Moet Hennessy Louis Vuitton

(

(LVMHY)

LVMHY:Nasdaq ADR) said it bought a 5% stake in the company.

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

The

106th Congress

was sworn in, with Rep.

Dennis Hastert

(R, Ill.) taking over as speaker of the

House

.

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

.