BIZWATCH : MARKETS.

MARKET LOGIC: The Dow Jones industrials and the Nasdaq market stumbled to record highs Monday. The Dow rose 23.09 to 6,567.18, surpassing Dec. 27's mark of 6,560.91 despite retreating from a 75-point gain that had boosted the blue-chip barometer above 6,600 for the first time.

MEMO

T-BILLS MIXED: Interest rates on short-term Treasury securities were mixed in Monday's auction. The Treasury Department sold $12.6 billion in three-month bills at an average discount rate of 5.02 percent, down from 5.08 percent last week. Another $12.6 billion was sold in six-month bills at an average rate of 5.11 percent, unchanged from last week. The three-month bill rate was the lowest since 4.92 percent Dec. 23. The six-month bill rate was the highest since 5.15 percent Oct. 28.

WARNER BROS. ON THE WEB: Warner Bros. Online and Telepictures Distribution announced its plans to launch CityWeb, a World Wide Web-based network that will allow local broadcasters to expand their presence on the Internet. Warner Bros. executives say the sites, which will be launched by this summer, will allow TV affiliates to offer on-line users access to local, national and international news, weather reports, sports and television listings.

LITTON WINS CONTRACT: Woodland Hills-based Litton Industries' Data Systems Division has been awarded a $20 million contract to supply air command control equipment to the Italian Air Force.Under the terms of the contract, Litton will work with Alenia to provide equipment scheduled for delivery in two years. Litton's equipment for the IAF is based on its system developed and manufactured for the U.S. Marine Corps and U.S. Air Force and represents the first international sale of the product line.

APPLE ADDRESSES CONCERNS: Apple Computer Inc.'s chief technologist reassured key customers Monday that they won't be left behind as the company makes the transition to a new operating system. Ellen Hancock said Apple will update and support its current operating system for several years, even after it introduces the new operating software it is developing.Hancock spoke to customers on the eve of MacWorld Expo, the biggest trade show devoted to the Macintosh. Investors dumped Apple Computer Inc. stock Monday after the company predicted that slow computer sales would widen its quarterly operating loss to as much as $150 million. Apple stock tumbled as much as 21 percent before recovering somewhat. It was down 3-7/8 a share to close at 17-7/8.

UNIVERSAL IN TOKYO: Universal Studios, which has been aiming to expand its consumer products activities, has opened a consumer products office in Tokyo with eight employees. The facility is headed by marketing veteran William M. Rahn, former general manager of the international division of Simon Marketing International. Rahn will be responsible for all consumer product activities in Japan and will work closely on the Universal Studios Japan theme park planned for Osaka. Rahn was born and raised in Japan.

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Photo, 2 Charts

Photo: (Color) no caption (Ellen Hancock)

Chart: (1--Color) DOW INDUSTRIALS

(2--Color) BIZ FACTS

CHILD's PLAY?

Where adult collectors shopped for collectible dolls and how much they spent, 1995

Knight-Ridder Tribune Graphics Network