STOCKS TO WATCH: IBM, Lucent, Disney, Juniper
Expect the following technology stocks to be among Monday's most actively traded issues: IBM, Lucent Technologies and Walt Disney Co.
IBM said Friday it would slash 1,100 jobs at its San Jose, Calif.-based data storage facility, as part of a previously announced restructuring of its Storage Systems Division.
IBM employs 11,000 people in several facilities in the San Francisco Bay area, including its storage headquarters in San Jose.
A spokesman for IBM in San Jose said he could not comment on whether there would be a charge for the cuts. Many of the jobs will be moved to other IBM locations, including Fujisawa, Japan, and Guadalajara, Mexico. IBM also will offer employees jobs elsewhere in the company.
IBM's total worldwide employment is now at 295,000, according to the company's 1998 annual report.
Its shares closed up 9/16 to 123 1/8 ahead of the announcement.
The stock peaked at 127 13/16 earlier this month.
Lucent said Friday that it and Cisco Systems Inc. (Nasdaq: CSCO) have agreed to settle a patent infringement lawsuit that it brought against the network-equipment maker.
Lucent sued Cisco last June alleging the computer networking company had infringed on eight of its key data network patents. Cisco responded with its own countersuit.
As part of the settlement, Cisco and Lucent agreed to cross-license technology. Further terms of the settlement were not disclosed.
Cisco said the settlement would not result in a charge against its earnings.
Last week, Lucent completed its $25.2 billion acquisition of Ascend Communications Inc. (Nasdaq: ASND), a Cisco rival, to gain access to networking equipment that will enable it to compete more effectively in the data world.
Lucent shares closed off 5/16 to 63 11/16 Friday.
Disney said it would restructure its home video and digital videodisc unit under the new direction of Richard Cook, head of the Walt Disney Motion Pictures Group.
Cook would take over the division, known as Buena Vista Home Entertainment, in addition to his tasks as chairman. He would also oversee international video distribution and marketing, the company said in a statement.
The move is part of Disney's ongoing plans to reconstruct its home video business to boost sales and cut costs.
Disney shares finished up 1/8 to 29 11/16 Friday.
Juniper Networks Inc. (Nasdaq: JNPR)
What do these guys do for an encore? That's what a lot of investors will be asking following the company's big debut on Friday.
Juniper surged 191 percent in its first day of trading. Now the aftermarket reaction begins. Can Juniper hold its gains?
Reuters contributed to this report.