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CNNfn market movers
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November 23, 1998: 2:36 p.m. ET
An FDA bite, Ergo a stock plunge; Brooke is smokin', mergers draw praise
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NEW YORK (CNNfn) - A merger-filled Monday rocked Wall Street and thrust a handful of companies on to the day's list of market movers, but the dashed hope of a biotech firm pounded its stock.
It's almost an unwritten axiom for biotech firms on Wall Street: get a U.S. Food and Drug Administration rejection, watch out for a stock plunge.
The latest victim to that if-then scenario was Ergo Science (ERGO) dipping 1-13/16 to 1-9/16, or 53 percent, after the developer of treatments for metabolic and immune system disorders said the FDA did not approve its New Drug Application for Ergoset tablets, a planned treatment for Type 2 diabetes.
Elsewhere in biotechnology, OXiGENE (OXGN) blasted up 3-1/16 to 11, about 39 percent, after the research firm said its cancer drug, Combretastatin, in a combination with radiation therapy indicated increased anti-tumor effects in animal models.
Morgan Stanley Dean Witter was behind the move of a handful of stocks, after changing its ratings on several companies.
Franklin Resources (BEN) was up 4-3/8 to 44-7/8 after Morgan Stanley upgraded the investment management company to "outperform" from "neutral."
As one financial services firm cast an upbeat glance onto another, T. Rowe Price (TROW), rose 3-5/8 to 38-7/8 after Morgan Stanley raised its rating on the company to "outperform" from "neutral."
On the downside, Xircom (XIRC) fell 3-21/32 to 31-7/8 as Morgan Stanley lowered its rating on the networking-products maker to "neutral" from "outperform."
Sending smoke signals to investors was Brooke Group (BGL), the smallest of the big tobacco companies, up 6-1/16 to 17-1/16, or about 55 percent, after joining at the last minute Friday a $206 billion tobacco settlement with 46 states.
Dow component Hewlett-Packard (HWP) rose 3-1/8 to 60-15/16 after the Wall Street Journal reported the PC maker is reviewing all aspects of its business to locate new areas of growth.
Merger mania strikes again
Among one of the hottest merger deals Monday was Cilcorp (CER), which shot up 7-5/8 to 61-1/16 after energy company AES (AES) agreed to buy the gas and electricity provider for $885 million.
AES gained 1-3/16 to 44-3/4.
Elsewhere, Coltec Industries (COT) took flight, up 2-1/16 to 20 after aerospace parts maker B.F. Goodrich (GR) unveiled plans to merge with its rival in a $2.2 billion deal.
Goodrich was up 2-1/16 to 38.
Circon (CCON) gained 3-7/8 to 14-9/16 after Maxxim Medical (MAM), a maker of medical trays and glove, said Saturday it will buy the maker of endoscopy systems, which let doctors see internal organs, in a deal worth $243 million in cash and assumption of debt.
Maxxim was up 3/8 to 25-3/8.
'Net stocks still rollin'
The Internet sector took off again Monday, powered higher by the bellwether bookseller Amazon.com (AMZN), soaring 19-13/16 to 200-7/16. The company announced last week a 3-for-1 stock split and unveiled plans to sell gadgetry and toys on its web site.
Also moving higher was online PC vendor Cyberian Outpost (COOL), up 8-1/8 to 22-1/2, Internet portal Yahoo! (YHOO), gaining 8-13/16 to 199-13/16, online news provider CNET (CNWK) up 2-11/16 to 59-7/16 and Internet service provider MindSpring Enterprises (MSPG) up 3-3/8 to 58. 
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