Wednesday, May 12, 1999

The Dow ends lower but other indices rally; it's officially official: Rubin says goodbye; Insight Communications files for an IPO.
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Markets

As

President Clinton

bid farewell to

Treasury

Secretary

Robert "Bob" Rubin

and welcomed new nominee

Lawrence Summers

, stocks wrapped up a rocky session with the

Dow Jones Industrial Average

modestly in the red and other major measures solidly higher.

The Dow lost 25.78 to 11,000.37, finishing way off its morning low of 10,812.81. That nadir came as word hit trading floors that Rubin, the popular ex-

Goldman Sachs

(GS) - Get Report

hand who's led Treasury through most of the

Clinton

administration, would finally announce his long-rumored departure.

The recovery from the lows was far more pronounced away from the Dow, which was heavily pressured by

United Technologies

,

Chevron

(CHV)

and

DuPont

(DD) - Get Report

. The

S&P 500

rose 8.31 to 1363.92, the

Nasdaq Composite Index

gained 39.32 to 2606.00, the

Russell 2000

tacked on 2.45 to 449.26 and

TheStreet.com Internet Sector

index advanced 2.82 to 656.91.

The bellwether 30-year Treasury bond rose 2/32 to 91 27/32, its yield at 5.83%.

Major European indices were mixed, with London's

FTSE 100

and Frankfurt's

Dax

closing fractionally lower while the Paris

CAC

finished just above break-even. In Asia, Hong Kong's

Hang Seng

climbed 138.6, or 1.1%, to 13,012.97, while Tokyo's

Nikkei

added 204.18, or 1.2%, to 16,947.36.

For more markets action and news, click

here.

Companies

Avondale Industries'

(AVDL) - Get Report

board last night agreed to start talking with

Litton Industries

(LIT) - Get Report

about its recent takeover offer, citing its possible superiority to the merger deal Avondale has already signed with

Newport News Shipbuilding

(NNS)

. Litton offered $1.76 billion for both Avondale and Newport News, with $504 million in cash earmarked for Avondale specifically.

Cox Communications

(COX)

agreed to buy Tyler, Texas-based

TCA Cable TV

(TCAT)

for about $4 billion in stock and cash. The deal will give Cox 883,000 additional cable customers and, along with its pending acquisition of

Media General's

(MEGA)

cable TV operations, make it the fourth-largest U.S. cable provider.

Consolidated Natural Gas

(CNG)

has accepted

Dominion Resources'

(D) - Get Report

takeover offer of $9 billion in stock, cash and assumed debt despite a higher offer from

Columbia Energy

(CG) - Get Report

. Consolidated said it took the lesser bid because of anticipated regulatory snags in the Columbia deal. Dominion is guaranteeing $66.60 in stock and cash for each Consolidated share.

Goldman Sachs went back to the securities market today, issuing $1.8 billion in high-grade debt. The deal, underwritten by Goldman itself, was upped from an initially planned $1.0 billion.

Cable company

Insight Communications

filed for an IPO, seeking to raise more than $500 million.

Donaldson Lufkin & Jenrette

is the lead underwriter.

Microsoft

(MSFT) - Get Report

is in talks to buy 30% of

Cable & Wireless Communications

(CWZ)

, according to

The Wall Street Journal

, which cited people familiar with the negotiations. Mister Softee already owns stakes in the U.K.'s two other major cable providers,

Telewest

(TWSTY)

and New York-based

NTL

(NTLI)

, and is speculated to favor their consolidation with Cable & Wireless.

For more news on companies and stocks, click

here.

Tech

Cisco

(CSCO) - Get Report

last night posted third-quarter earnings of 38 cents a share, 1 cent above the 29-analyst

First Call

consensus and up from the year-ago 30 cents. Cisco also announced a 2-for-1 stock split, its eighth split in nine years.

Lycos

(LCOS)

,

USA Networks

(USAI) - Get Report

and

Ticketmaster Online-CitySearch

(TMCS)

have officially called off their merger.

For more tech news and commentary, click

here.

General News

Treasury Secretary Robert Rubin is resigning, President Clinton officially announced this afternoon. He'll be replaced by Deputy Secretary Lawrence Summers, whose nomination Clinton also announced. Undersecretary of State

Stuart Eizenstat

will be named Summers' replacement.

TSC

columnist

James Padhina

couldn't care less about it.

Russian President

Boris Yeltsin

sacked Prime Minister

Yevgeny Primakov

, appointing First Deputy Prime Minister

Sergei Stepashin

to act in his stead. The

Duma

, which meets tomorrow to discuss impeaching Yeltsin on five counts ranging from dissolving the Soviet Union to "genocide" against the Russian people, reacted by passing a nonbinding resolution urging Yeltsin to step down.

Yugoslav troops made one of the their deepest incursions into Albania today while fighting Kosovar rebels, according to international observers. NATO Secretary-General

Javier Solana

promised speedy retaliation by two dozen U.S. Apache helicopters deployed in Albania.

International

Nintendo

and electronics concern

Matsushita Electric Industrial

(MC) - Get Report

are forming a broad partnership to develop the next-generation Nintendo game console to be released in late 2000. Matsushita will produce digital video disc drives for the console, which will run on an

IBM

(IBM) - Get Report

PowerPC processor.

For more international news and commentary, click

here.

Elsewhere

Reclusive author

J.D. Salinger

won't need to philosophize about the cost of privacy much longer. The market will determine that on June 22, when writer and former lover

Joyce Maynard

will auction off a series of his letters chronicling the final year of their relationship, which began when Maynard was 18 and Salinger was 53.

The

New Jersey Nets

are moving -- to Newark. According to

The Star-Ledger

, the team's owners notified Gov.

Christine Whitman

of the news in a letter rejecting an offer to participate in a new Meadowlands sports complex. The move will happen by 2003, the paper wrote.

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