Wednesday, Oct. 6, 1999

Yahoo! dominated heavy after-hours trading, ringing in gains of over 7 on both Island ECN and Market XT.
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After-Hours Markets

Boston's

Don't Look Back

dominated the pop charts 21 years ago this week.

Yahoo!

(YHOO)

was taking a cue from the arena rockers' album title, leading after-hours trading on

Island ECN

. The company just released its third-quarter earnings, topping analysts' expectations by a nickel with a profit of 14 cents a share. It was easily the heaviest traded stock on Island, doubling

Global Crossing

(GBLX)

, its closest competition.

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's (MWD) Discover Brokerage and Mellon Bank's (MEL) Dreyfus 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.

TheStreet.com

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

At the close, the major stock proxies showed all the signs of a full recovery from yesterday's losses, with the

Dow Jones Industrial Average

soaring 187.75 to 10,588.34 and the

Nasdaq Composite Index

climbing 57.4 to 2857.0

The big European indices all closed in positive territory with France's

CAC

mounting 30.59 to 4691.72, Germany's

Dax

adding 51.47 to 5353.32, and London's

FTSE

rising 13 to 6097.

In Asia's market news, Japan's

Nikkei

surged ahead of its previous trading day finish, ending up 112.27 to 17,896.42, and Hong Kong's

Hang Seng

managed to remain positive, closing up 19.09 to 13017.98.

Mergers, acquisitions and joint ventures

Leo Hindery, head of Internet initiatives at

AT&T

(T) - Get Report

, is departing from the company to pursue other interests. The long-distance behemoth said plans to launch new broadband services, including cable telephone pilots in eight cities by year's end, nonetheless remain on target. AT&T said CFO Daniel Somers would fill Hindery's post until a permanent replacement is found.

Separately, AT&T and

Dobson Communications

, through a joint venture, are buying

American Cellular

for $2.32 billion.

In addition, AT&T and

IBM

(IBM) - Get Report

said they were teaming up to create e-business solutions for small and midsize businesses.

Asarco

(AR) - Get Report

accepted a juicier $1.12 billion buyout offer from

Phelps Dodge

(PD) - Get Report

. Phelps Dodge reached an agreement last week to acquire

Cyprus Amax Minerals

(CYM)

.

CVS

(CVS) - Get Report

and

Merck's

(MRK) - Get Report

pharmacy benefits division,

Merck-Medco

, set a pact between their Internet sites.

Microsoft

(MSFT) - Get Report

along with

British Telecommunications

(BTY)

unveiled plans to launch wireless Internet service, starting with a three-month test run involving 1,000 mobile-phone users. The test will enable employees from five major corporations, including the

BBC

,

Credit Suisse First Boston

and

Nortel Networks

(NT)

, to use their phones to check their email and other content on the Internet that can be adapted to fit a small mobile-phone screen. If all goes as planned, the companies will offer the service in early 2000.

Although

Allianz's

buyout talks with

Pimco Advisors Holdings

(PA)

have reached an advanced stage, the negotiations could still fail,

Reuters

reported, citing a source familiar with details of the talks. Allianz is a German insurer.

The

Federal Communications Commission

awarded approval to the planned $61 billion merger of

SBC Communications

(SBC)

and

Ameritech

(AIT) - Get Report

. The FCC said the companies conceded to several stipulations to win approval, which included offering huge discounts to rivals when leasing access to their network. The company faced possible fines totaling more than $2 billion if they refused to meet the stipulations.

Earnings/revenue reports and previews

Alcoa

(AA) - Get Report

reported a third-quarter earnings of 69 cents a share, in line with the 16-analyst estimate of 69 cents a share and the year-ago 61 cents.

Circuit City

(CC) - Get Report

said that its September same-store sales increased 6%, while total September sales for the stores at $933.8 million -- a 16% increase from the year-ago figure of $806.5 million.

PepsiCo

(PEP) - Get Report

posted third-quarter pro forma earnings of 34 cents a share, a penny ahead of the 16-analyst estimate but down from the year-ago 37 cents.

Osmonics

(OSM)

warned investors that it would report third-quarter sales below its earlier expectations due to production and shipping delays. The four-analyst estimate forecasted the company to earn 15 cents a share, up from the year-ago 8 cents.

Robbins & Myers

(RBN)

posted fourth-quarter earnings of 32 cents a share, missing the three-analyst estimate of 39 cents and the year-ago 56 cents.

Structural Dynamics Research

(SDRC)

warned that third-quarter revenue will be about $109 million, less than the current analysts' consensus estimate of $116 million in earnings, not including nonrecurring, acquisition-related charges. The earnings will come in at about 12 cents a share, well below the six-analyst estimate of earnings of 30 cents.

Speaking at the

BancBoston Robertson Stephens

conference,

Sunglass Hut

(RAYS)

CEO John Watson said he was comfortable with the five-analyst third-quarter estimate of a 4-cent loss, narrower than the year-ago loss of 8 cents. The Watson added that he expects fiscal 2000 earnings to be in line with six-analyst estimate of 57 cents a share, beating the year-ago 37 cents.

Tenet Healthcare

(THC) - Get Report

posted first-quarter earnings of 39 cents a share, beating the 16-analyst estimate of 38 cents and the year-ago 44 cents. The company also said that it has inked a deal to sell 10 hospitals.

Wendy's

(WEN) - Get Report

Chairman Gordon Teter told investors at the BancBoston Robertson Stephens conference that he expects the fast-food chain to report fiscal 1999 earnings between $1.27 to $1.31 per share, in range with the 16-analyst estimate of $1.30 and up from the year-ago $1.13.

Whirlpool

(WHR) - Get Report

CEO David Whitman said that he anticipates the company posting third-quarter earnings in line with the 10-analyst estimate of $1.34.

Winn-Dixie

(WIN) - Get Report

said it reported first-quarter earnings of 15 cents a share, greatly missing the six-analyst estimate of 23 cents but up from the year-ago 10 cents.

Offerings and stock actions

About.com

(BOUT) - Get Report

has filed with the

Securites and Exchange Commission

for a 3.5 million-share offering.

Safeway

(SWY)

said it set a $1 billion share-repurchasing program.

Neiman Marcus

(NMG)

said it has boosted its share-repurchasing program to 2 million shares. The company said it had roughly 500,000 shares remaining from an earlier 1.5 million-share buyback before it approved the addition.

In IPO News:

Silicon Image

(SIMG)

was soaring 14 1/8, or 117.7%, to 26 1/8 in its first day of trading. The IPO priced at $12.

Breakaway Solutions

(BWAY) - Get Report

more than tripled, leaping 32 11/16, or 230%, to 46 after it made its trading debut. The initial public offering priced at $14.

Smart Disk

(SMDK)

was jumping 12 1/2, or 96%, to 25 1/2 in its first day of trading. The 9.6 million-share IPO priced above range at $13.

Analyst actions

Warburg Dillon Read

sliced its estimates for

AMR

(AMR)

, cutting its third-quarter view to $1.80 a share from $2.10 and its fiscal 1999 outlook to $4.70 from $5.

Warburg Dillon Read raised its rating on

Ciena

(CIEN) - Get Report

to buy from hold.

Donaldson Lufkin & Jenrette

upped its rating on

Computer Sciences

(CSC)

to buy from market perform. Credit Suisse First Boston also raised the shares to a buy from a hold.

ABN Amro

upgraded shares of

DTE Energy

(DTE) - Get Report

to buy from outperform.

CIBC World Markets

rolled out coverage of

DuPont Photomask

(DPMI)

with a rating of strong buy.

Lehman Brothers

initiated coverage of

eBay

(EBAY) - Get Report

with a buy rating.

Banc of America initiated coverage of

Exar

(EXAR)

with a buy rating and a price target of 50.

Warburg Dillon Read started coverage of

Florida Rock

(FRK)

with a hold rating.

PaineWebber

upped its rating on

Genzyme

(GENZ)

to buy from attractive.

Merrill Lynch

also raised its rating on the shares to an intermediate buy from accumulate, while CS First Boston cut the stock to buy from strong buy.

Warburg Dillon Read began coverage of

Excite@Home

(ATHM) - Get Report

with a buy rating and set a price target of 65.

Warburg Dillon Read upped its rating on

Halliburton

(HAL) - Get Report

to a strong buy, while Credit Suisse First Boston raised the shares to buy from hold.

ING Barings

cut its rating on

HealthPlan Services

(HPS) - Get Report

to hold from buy.

Morgan Stanley Dean Witter

lowered its rating on

Hercules

(HPC)

to outperform from strong buy.

Warburg Dillon Read initiated coverage of

Jones Pharma

(JMED)

and

Connetics

(CNCT)

with buy ratings.

Salomon Smith Barney

raised its fourth quarter and fiscal 1999 estimates on

Lexmark

(LXK)

to 80 cents a share from 70 cents and $2.41 per share to $2.31 respectively. The firm also upped it fiscal 2000 estimate to $3.25 a share from $2.75.

Warburg Dillon Read initiated coverage of

Martin Marietta

(MLM) - Get Report

with a strong buy rating.

Banc of America

rolled out coverage of

Midcoast Energy

(MRS)

with a buy rating and a price target of 27.

CIBC World Markets cut its rating on

Nextel

(NXTL)

to buy from strong buy.

Salomon Smith Barney lowered its opinion on

NCR

(NCR) - Get Report

to neutral.

The company said it expects to post third-quarter earnings in the range of 30 cents to 43 cents a share, possibly meeting or surpassing the six-analyst estimate of 42 cents a share and the year-ago 25 cents.

PaineWebber sliced its rating on

Public Storage

(PSA) - Get Report

to attractive from buy.

Warburg Dillon Read cut its rating on

Quintiles

(QUIN)

to hold from strong buy.

Goldman Sachs

lowered its rating on

Safety-Kleen

(SK)

to market perform from market outperform.

Deutsche Banc Alex. Brown

lowered its rating on

Sprint

(FON)

to market perform from market outperform.

PaineWebber lowered its rating on

Sunrise Assisted Living

(SNRZ)

to neutral from buy.

J.P. Morgan

also downgraded the shares to market perform from buy, while DLJ and Merrill Lynch also cut the shares.

Lehman Brothers upped the price target for

Time Warner Telecom

(TWTC)

to $32 from $26.

Merrill Lynch upped its long-term rating on

Triton Energy

(OIL) - Get Report

to a buy from accumulate.

Merrill Lynch initiated coverage of

Veritas

(VRTS) - Get Report

and

Legato

(LGTO)

with near-term accumulate ratings.

ING Barings initiated coverage of

Viant

(VIAN)

with a buy rating.

Warburg Dillon Read rolled out coverage of

Vulcan Materials

(VMC) - Get Report

with a buy rating.

Miscellany

Aetna

(AET)

Chairman and CEO Richard Huber said industry leaders and corporate customers will meet to discuss an approach to handling HMO lawsuits,

The Wall Street Journal

reported.

America Online

(AOL)

said it would create a custom AOL message service for

Lycos

(LCOS)

.

Gemstar

(GMST)

said it came out on top in an arbitration against

General Instrument

(GIC)

worth "multiple tens of millions of dollars." The company said that the

American Arbitration Association

found General Instrument accountable for a breach of contract with Gemstar's Starlight Telecast division and misappropriation of the division's patented interactive program guide technology. General Instrument said it has gauged the compensatory and punitive damages between $25 million to $36 million, with an additional 50% tacked on for punitive damages.

General Motors

(GM) - Get Report

Vice Chairman Harry Pearce refuted analysts' reports that the company has plans to break off its

Hughes Electronics

(GMH)

division in the near future, the

Journal

reported.

US Airways

(U)

machinists and cleaners approved a five-year agreement that calls for a 6% up-front raise and a bonus reflecting some retroactive pay. Assistant general chairman of District 141-M of the

International Association of Machinists and Aerospace Workers

said that the contract was approved by 74% of the vote.

Wal-Mart

(WMT) - Get Report

announced plans to launch the Wal-Mart credit card, which will be administered through

GE Capital

, in September.

As originally published this story contained an error. Please see

Corrections and Clarifications.