Brick-and-mortar firms boost market
NEW YORK - Old Economy stocks came out on top Tuesday as two stalwarts of traditional businesses - paper and aluminum - led the market higher.
The Dow Jones industrial average rose 80.61, to 10,727.19. The Nasdaq composite index fell 23.87, to 3,956.42 as tech stocks pulled back from a rally earlier in the day.
Advancing issues edged declining issues by a 5-to-4 margin on the New York Stock Exchange, where composite volume came to 1.18 billion shares.
Communication giant eyes merger
SEATTLE - Deutsche Telekom AG is reportedly pursuing VoiceStream Wireless Corp., which operates a nationwide wireless communications network in the United States.
The Financial Times of London reported late Monday on its Web site that Deutsche Telekom had offered about $30 billion for VoiceStream. A Deutsche Telekom spokesman called the report speculation.
WorldCom chief: Sprint deal dead
NEW ORLEANS - The head of WorldCom Inc. strongly indicated Tuesday that the company's proposed merger with Sprint Corp. is dead and criticized federal authorities for regulating the industry to a point that it's hurting U.S. companies and consumers.
After a speech to the Wireless Communications Association International conference, WorldCom President and Chief Executive Bernard Ebbers said he had nothing to report on the merger, which has been dealt major setbacks by Justice Department and the European Union antitrust regulators.
Paper producer's profits strong
NEW YORK - International Paper said Tuesday that its earnings rose strongly in the second quarter and projected further growth this year because of its acquisition in June of Champion International.
The Purchase, N.Y.-based company said net income totaled $270 million, or 64 cents a share, compared with a loss in the second quarter of 1999 of $71 million, or 17 cents a share.
Lingerie legend files bankruptcy
LOS ANGELES- Frederick's of Hollywood, famous for its naughty nighties and scandalous push-up bras, has gone bust, filing for Chapter 11 bankruptcy protection.
The lingerie company said it plans to keep its nearly 200 stores and its catalog and Internet sales in operation while it reorganizes.
Frederick's share of the lingerie business has been stagnant, with revenue reaching about $190 million. Its competitor Victoria's Secret had sales of $2.1 billion in 1999.