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Stocks eye exec ousters
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August 27, 1999: 6:46 a.m. ET
Investors mull Toys 'R' Us, Disney's ABC amid shakeups at the top
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NEW YORK (CNNfn) - Wall Street will try to bounce back from its losses Friday after a day of widespread profit-taking, while investors awaited data on Americans' earnings and spending patterns due for release before the markets open.
Early indications pointed to a flat opening for U.S. stocks.
S&P futures on the Globex exchange system were unchanged at 1,367.80. That's about 2 points above fair value for S&P futures -- a formula that takes into account interest and dividend effects -- which was estimated by London traders at 1,365.16. Typically, a point of difference between the futures index and fair value equals eight points on the Dow Jones industrial average as trading begins.
On Thursday, the Dow industrials sank 127.59 points, or 1.1 percent, to 11,198.45, as many investors decided it was time to cash in after days of strong gains. The Nasdaq composite dropped 30.98 points, or 1.1 percent, to 2,774.62, and the S&P 500 index fell 19.78 points to 1,362.01.
In Asia, Tokyo's Nikkei 225 finished lower for the fourth consecutive session Friday. The index slipped 66.92 points, or 0.38 percent, to 17,599.37. In Hong Kong, the Hang Seng slumped 225 points, or 1.7 percent, to close at 13,383.13.
In Europe, most bourses trading slightly lower at mid-morning Friday, following the fall in U.S. stocks and the overnight drop in Tokyo. In London, the FTSE 100 slipped 17.1 points, or 0.27 percent, to 6,366.8, while Germany's Xetra Dax recouped some early losses but was still down 0.21 percent at 5,378.22.
In overnight trading in the Treasury market, the benchmark 30-year bond lost 3/32 of a point in price for a yield of 5.89 percent, unchanged from Thursday's close.
In the currency markets, the dollar fell 0.21 to 111.34 Japanese yen, and stood at $1.0459 against the euro.
Investors will get several pieces of key economic information to digest before the market opens. Data on July personal income is due, with the consensus estimate of economists polled by Reuters calling for a 0.5 percent increase, compared with 0.7 percent a month earlier.
July personal consumption is also slated for release, with the consensus estimate at 0.5 percent growth, up from 0.3 percent in the prior report.
In corporate news, shares in two companies that announced major management shakeups after the markets closed Thursday will be closely tracked.
Toys "R" Us Inc. (TOY) chief executive officer Robert C. Nakasone stepped down, citing "differing views regarding the direction of the company." Toys "R" Us has been suffering setbacks recently and lost its No. 1 U.S. toy seller spot last year to Wal-Mart Stores Inc. Shares in the toy retailer closed up ½ at 16.
Also, Jamie Tarses resigned her post as president of Walt Disney 's (DIS) ABC Entertainment, concluding a tumultuous three-year tenure. The announcement came just two days after ABC executives denied a published report that the network would seek Tarses' resignation. Disney shares fell 3/8 to close at 29-1/2 in Thursday trade.
In other news, a California judge has slashed more than $3 billion from a $4.9 billion punitive damages award against General Motors (GM) in a lawsuit over the explosion of a Chevrolet Malibu gas tank in a crash. GM said the new $1.09 billion punitive sum will be appealed. GM shares closed Thursday at 67-1/16, up 1-3/16.
Meanwhile, European regulators said Friday that they remain at odds with Exxon (XON) and Mobil (MOB) over approval of the oil companies' planned $77 billion merger, but that they expect to approve the deal. The companies are seeking to broker a deal with the European Commission that will allow the deal to pass regulatory hurdles in Europe and the United States by the end of September. Shares of Exxon dropped 1-15/16 to 80-5/16 Thursday in New York, while Mobil shares lost 2-13/16 to 103-7/16.
In the health care sector, medical device maker Medtronic Inc. (MDT) announced early Friday it will acquire Xomed Surgical Products, Inc. (XOMD) in a stock swap worth about $800 million. Xomed makes surgical products used by ear, nose and throat surgeons. Its shares closed down 5/8 at 51-1/4 Thursday. Medtronic rose 1-1/16 to 76-11/16.
In other news, flight attendants at Northwest Airlines (NWAC) have rejected a five-year tentative contract, meaning 11,000 union members will now go back to a fourth year of negotiations. The union plans to hold an executive board meeting Friday to discuss its next step. Northwest shares slipped 13/16 to 31-15/16 Thursday.
Personal finance software maker Intuit Inc. (INTU) late Thursday posted a smaller-than-expected fiscal fourth-quarter loss. The company lost $16.3 million, or 26 cents per share, on a pro forma basis, beating estimates of a 33-cent per share loss. Ahead of the announcement, shares dropped 1-3/4 to 82-7/8. Intuit's Quicken is a partner with CNNfn.
Shares of PC software maker Autodesk Inc. (ADSK) also could be active, after the company missed analysts' earnings estimates and announced a 10 percent cut in its work force. The company earned $5.7 million in the second quarter, or 9 cents per diluted share, missing First Call's estimate of 11 cents per share and down from profits of 64 cents per share in the year-earlier period. Shares finished up 2-11/16 at 24-13/16 ahead of the announcement. 
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