Blue Chips Stall, Techs Soar

Economic reports suggesting the U.S. economy may be accelerating have taken their toll on blue chip stocks, but the technology-laden Nasdaq index continues to soar. The Dow Jones industrial average opens at 8,187.54 today after falling 10.91 points yesterday. But the Nasdaq posted its third consecutive record high. It opens at 1,621.53 after gaining 16.08 points. Today investors will have more information to digest when the Federal Reserve issues its Beige Book report. The Tokyo stock market broke a three-session losing streak today. The Nikkei average ended 187.62 points higher at 19,702.07 The dollar was trading at 119.04 yen.

Labor Leaders Rally Support

Teamsters President Ron Carey and AFL-CIO President John Sweeney are hosting a rally in Chicago today to build support for the strike against the United Parcel Service. The nationwide walkout is in its third day, with no talks scheduled between management and the Teamsters union. Labor Secretary Alexis Herman yesterday spoke to both sides to try to get them back to the bargaining table. But while both say they are ready to talk, UPS says it stands by its final contract offer, which the union has rejected.

UPS Strike Has Wide Impact

The UPS strike has slowed deliveries of everything from air fresheners to lobsters, as the walkout at the nation's biggest shipper takes a growing toll on thousands of businesses across the United States. UPS has assigned thousands of managers and non-union workers to do the jobs that 185,000 striking drivers, sorters and loaders usually do. But both sides in the dispute agree the company's operations are, for the most part, shut down.

Apple Upheaval Ahead of Job Talk

Just before a much-anticipated announcement today by Apple co-founder Steve Jobs, the computer company's top scientist left the firm for a job with a startup software company. Lawrence Tesler headed Apple's R&D efforts and guided its technical direction. His departure comes at an awkward time for Apple as the computer maker prepares today to unveil part of a new management team, new products and possibly a revamped business strategy at the Macworld trade show in Boston. Last week, several news organizations reported Jobs would be named chairman of Apple, at least on an interim basis.

Cisco Profits Up

Cisco Systems says profit from operations rose 34 percent in the latest quarter, matching Wall Street forecasts, on slightly weaker-than-expected revenue. The results were released after the market closed yesterday and are sure to spark a response today. The world's biggest maker of computer networking gear reports profit from operations of $383 million, or 55 cents a share, for its fourth quarter, compared with profit from operations of $286 million, or 42 cents a share, a year earlier. The firm says it gained market share in all its product lines.

Ford Sales Rise

Ford is reporting a 5.1 percent increase in July U.S. car and light truck sales, helping to fuel a mid-summer rebound for the U.S. auto industry. Boosted in part by a new round of incentives from Ford and GM, U.S. industry sales during July rose 4.6 percent over a year ago to 1.35 million units. Car sales edged up 1 percent, while light truck sales were up 9.3 percent. On Friday, Chrysler reported a 9.3 percent drop in vehicle sales. GM's July sales rose by a surprisingly strong 6.7 percent.

Lucent, Ameritech in Deal

Lucent Technologies has signed a five-year contract to supply Ameritech Cellular Services with wireless equipment. Specific financial details of the contract were not disclosed but analysts say the deal is worth at least $700 million and potentially more than $1 billion dollars to Lucent over the life of the contract. Hambrecht & Quist analyst Joe Noel says it is one of the largest wireless equipment deals ever. Lucent says the contract calls for it to provide equipment and installation and engineering services for the entire infrastructure of Ameritech's ClearPath digital wireless network.

FCC to Act on NYNEX Deal

The Federal Communications Commission is expected to act this week on Bell Atlantic's planned $23 billion merger with NYNEX. One analyst says, "It's a foregone conclusion that it will be approved." Approval is the last hurdle to creation of the nation's No. 2 phone company, after long-distance giant AT&T. The deal was first announced in April 1996. The new Bell Atlantic will serve an area stretching from Maine to Virginia that ecompasses 39 million phone lines.

MCI Offers Web Video Broadcasts

MCI and Progressive Networks say they will offer a service to deliver audio and video programming over the Internet. The companies said the new service, known as "RealNetwork," will give a boost to the Internet as a mass broadcast medium by combining MCI's high-speed Internet backbone network -- one of the world's largest and fastest -- with Progressive Networks' multimedia streaming technology. Streaming is a technology that enables large amounts of continuous audio or video programming to be transmitted over the Internet.

McCereal

McDonald's is teaming up with leading cereal maker Kellogg in a cross-promotion that features coupons for McDonald's food items on 14 varieties of Kellogg's cereal. It is a dramatic expansion of the marketing partnership that began in 1995. Beginning this month, packaging on millions of specially marked boxes of such Kellogg's staples as Frosted Flakes, Rice Krispies and Corn Flakes, as well as newer brands such as Cocoa Frosted Flakes and Honey Crunch Corn Flakes, feature the coupons. The offers range from a free Happy Meal with purchase of a Deluxe Extra Value Meal, to a buy-one-Big Mac-get-one-free offer.

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