BIZWATCH : MARKETS.

ZIP UP: Iomega Corp. rose 2-1/2 to 31-3/4. The stock rose for the second day after the company said Dell Computer Corp. will include Iomega's Zip, Ditto and Jaz storage solutions on Dell's Government Services Administration schedule. Dell shares were up -1/8 at 36-3/4.

MEMO SETTLEMENT TOSSED: A federal judge Thursday threw out an agreement by 15 drug makers to pay $408.9 million to settle a class-action lawsuit that contends they conspired to fix prices charged to retail pharmacies. Judge Charles P. Kocoras of the U.S. District Court also ruled that the retailers had presented enough evidence to warrant a trial of the drug makers, as well as seven others that did not join the settlement. The trial is scheduled to begin May 7.

FIXEDS ARE UPPER: Thirty-year, fixed-rate mortgages averaged 7.78 percent this week, up from 7.69 percent last week, a national survey released Thursday by the Federal Home Loan Mortgage Corp. showed. It was the highest since March 21, when rates averaged 7.81 percent.

GRAND IDEA: The Walt Disney Co., which has been buying up hotels in Anaheim, has increased its offer for the financially troubled Grand Hotel near Disneyland to $13.3 million, a spokesman for the hotel's owner said Wednesday. Grand Hotel Associates, which filed for Chapter 11 bankruptcy protection in August, was previously offered $12.2 million by Disney.

NESTLE QUENCHES THIRST: Glendale-based Nestle USA Inc. announced Thursday that its beverage affiliate will buy the brands and assets of Koala Springs International, which makes exotic fruit drinks. Terms of the cash transaction, which is subject to legal and regulatory approval, were not disclosed.

POX POLICY POLISHED: PacifiCare of California will rewrite a policy that discouraged the health maintenance organization's doctors from prescribing the chicken pox vaccine Varivax.

DORFMAN ON STOCKS: The Nasdaq Stock Market is proposing a special rule to control volatile computerized trading in stocks mentioned on the daily broadcasts of financial journalist Dan Dorfman. Under the Nasdaq proposal, the market surveillance department chief could temporarily suspend trading in a computerized system for small orders involving stocks mentioned by a ``well-known, recognized and influential stock analyst or financial commentator.'' Nasdaq spokesman Marc Beauchamp said the rule was aimed at Dorfman.

PLUGGED IN CUTTING UP THE APPLE PIE: Apple Computer Inc. kicked off its austerity program Thursday by selling its sprawling manufacturing facility in Fountain, Colo., to manufacturer SCI Systems Inc. for an undisclosed sum. Under terms of the three-year deal, SCI will build Apple products at the 360,000-square-foot site and assume operations, including unsold products.

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2 Charts

Chart: (1--Color) DOW INDUSTRIALS

(2--Color) BIZ FACTS

C ost of living

Annual percent change in consumer prices, 1995

Knight-Ridder Tribune Graphics Service