Stocks to Watch Friday: Nordstrom, Belo, Newport, Wachovia

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M&A Earnings/revenue Analyst actions Offerings/stock actions

Updated from 1:56 p.m. EDT

Bank of America(BAC Quote) said it would cut between 9,000 and 10,000 jobs, or close to 7% of its 150,000 employees, over the next year to reduce costs and kick-start growth.

The company, which has $680 billion in assets, said the move would result in a third-quarter layoff-related charge of up to $500 million. The bank said most of the cuts will be in middle- and senior management.

TheStreet.com/NYTimes.com joint newsroom wrote about the layoffs in a story earlier today.

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Nortel(NT Quote) is paying $7.8 billion worth of stock to buy Alteon WebSystems(ATON Quote), which develops content-switching technology that enables Web site operators to process, track and direct Internet traffic.

Nortel said the purchase will help it better integrate Internet data centers with its high-performance optical and wireless network equipment. Under terms of the agreement, Alteon shareholders will receive 1.83148 Nortel common shares for each share of Alteon. Yesterday, Nortel and Corning(GLW Quote) disclosed that they had broken off talks for the sale of Nortel's optical-components business to Corning in a deal that potentially was worth $100 billion.

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Nordstrom(JWN Quote) warned that its second-quarter earnings will come 12 cents to 16 cents a share below a 22-analyst estimate of 55 cents a share. The company attributed the missed target to lower-than-expected sales, above-plan markdowns and promotional activities. It said increased selling and other expenses also contributed to the earnings shortfall.

After the announcement, Banc of America cut the stock to market perform from buy and cut its 2000 EPS to $1.35 from $1.73 a share.

For more, check out the story on Nordstrom's warning by TheStreet.com/NYTimes.com joint newsroom.

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After Thursday's closing bell, iVillage (IVIL Quote), a provider of women's content online, announced its losses. The company, whose stock has been hit in recent months, posted a second-quarter loss of 94 cents a share, greater than the seven-analyst prediction of an 88-cent loss and the year-ago 63-cent loss. The company blamed a reorganization of its accounts due to a change in strategy, Reuters reported. Earlier this month, iVillage sold its iBaby e-commerce operations.

Additionally, iVillage named its president, Doug McCormick, to the position of chief executive. He replaces Candice Carpenter, who will become chairman.

It Takes What, Again? iVillage, one year

Mergers, acquisitions and joint ventures

EMI Group and MP3.com(MPPP Quote) settled a copyright infringement suit by entering into a nonexclusive, North American licensing agreement that lets MP3 use EMI-controlled recordings on its software services. MP3 entered into settlements with Time Warner's(TWX Quote) Warner Music Group and Bertlesmann's BMG Entertainment over copyright infringement suits. In January, EMI and Time Warner announced plans to create the world's largest music company. EMI shareholders approved the merger in June.

Interpool(IPX Quote), which leases cargo containers, said it's buying the North American intermodal division of Transamerica Finance's Transamerica Leasing unit for about $675 million in cash. The company expects the acquisition to be completed by the end of the year, subject to receipt of financing and of Hart Scott Rodino approval.

NTL(NTLI Quote) and Virgin Group will split up their Virgin.net joint venture. The deal calls for NTL, which already owns 49% of the unit, to pay 10% cash and the rest in stock for the 51%-stake in Virgin.net's ISP arm owned by Virgin. Also, Virgin will have 100% ownership of the venture's content and commerce business. Terms of the deal were not disclosed.

SBC (SBC Quote) and Verizon(VZ Quote) put their cable-TV operations up for sale, according to The Wall Street Journal. The report said the companies owned the cable-TV properties as a result of mergers. "They don't strategically fit with what we're doing," a Verizon spokesman told the Journal, while an SBC spokesman said it is "exploring several options for the business, including the outright sale" of its cable-TV properties.

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Earnings/revenue reports and previews

LG&E Energy (LGE Quote) posted earnings of 39 cents a share, in line with the five-analyst estimate and the year-ago earnings.

Viacom(VIA Quote) said it would take one-time charges of about $1.5 billion against second-quarter earnings, covering expenses related to Viacom's acquisition of CBS and new film accounting rules, according to The Wall Street Journal, citing analysts' estimates and a Securities and Exchange Commission filing by the company.

Also, Viacom said it plans to make about $3 billion in merger-related accounting adjustments. A three-analyst estimate currently expects a loss of 6 cents, excluding the one-time items.

Wisconsin Energy(WEC Quote) posted earnings of 31 cents a share, missing the seven-analyst estimate of 39 cents and down from year-ago earnings of 42 cents. The company said significantly cooler weather, higher purchased-power costs and items related to its acquisition of WICOR were factors contributing to the missed earnings. Wisconsin Energy also warned that full-year earnings would be worse than previously expected.

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After Thursday's Close

Starbucks (SBUX Quote) served up third-quarter numbers in line with the 20-analyst prediction. The champion of the tall latte posted earnings of 18 cents a share, above the year-ago 13-cent profit.

Also in line with Wall Street expectations was EDS (EDS Quote). The professional services firm listed a second-quarter profit of 53 cents a share, even with the 15-analyst prediction and above the year-ago earnings of 44 cents a share.

CDNow (CDNW Quote) posted a loss of 43 cents a share for the second quarter, besting the one-analyst 52-cent loss prediction and above the year-ago loss of 76 cents a share.

MagneTek (MAG Quote), a maker of electronic parts for voice and data transmission, announced plans to sell its electrical-component operations and predictions for a fourth-quarter loss of about 5 cents a share. Wall Street analysts called for the company to come in at 16 cents a share. MagneTek posts earnings Aug. 25.

Upside Surprises
Company	Qtr	EPS	First Call View	Yr. Ago EPS	Number of Analysts
ADAC Laboratories (ADAC Quote)	3Q	21c	19c	-64c	4
Allmerica Financial (AFC Quote)	2Q	$1.37	$1.36	$1.32	10
Airgas (ARG Quote)	1Q	15c	12c	14c	6
Anadarko Petroleum (APC Quote)	2Q	56c	52c	6c	1
Breakaway Solutions (BWAY Quote)	2Q	-2c	-4c	-9c	11
Bsquare (BSQR Quote)	2Q	7c	2c	3c	5
Clarent (CLRN Quote)	2Q	1c	-2c	-$2.73c	6
Conectiv (CIV Quote)	2Q	48c	27c	31c	5
Cooper Cameron (CAM Quote)	2Q	36c	35c	24c	23
Cox Communications (COX Quote)	2Q	17c	-8c	90c	3
Cylink (CYLK Quote)	2Q	-20c	-25c	-10c	2
Coherent (COHR Quote)	3Q	36c	32c	-21c	1
E-Loan (EELN Quote)	2Q	-22c	-26c	-30c	14
Eastman Chemical (EMN Quote)	2Q	$1.28	$1.09	54c	9
Energy East (NEG Quote)	2Q	43c	36c	39c	7
Georgia Gulf (GGC Quote)	2Q	$1.04	$1.01	15c	7
Human Genome Sciences (HGSI Quote)	2Q	-16c	-18c	-5c	8
ICOS (ICOS Quote)	2Q	-38c	-39c	-32c	2
Newmont Mining (NEM Quote)	2Q	10c	6c	4c	14
Ocular Sciences (OCLR Quote)	2Q	24c	21c	40c	3
OpenTv (OPTV Quote)	2Q	-7c	-9c	-3c	2
Quokka Sports (QKKA Quote)	2Q	-43c	-46c	-50c	7
Reinsurance Group (RGA Quote)	2Q	64c	60c	56c	5
STC (STCS Quote)	2Q	-21c	-24c	-14c	2

Downside Surprises
Company	Qtr	EPS	First Call View	Yr. Ago EPS	Number of Analysts
NiSource (NI Quote)	2Q	18c	22c	18c	9
Western Digital (WDC Quote)	2Q	-19c	-17c	-90c	7

In-Line Reports
Company	Qtr	EPS	First Call View	Yr. Ago EPS	Number of Analysts
ACT Manufacturing (ACTM Quote)	2Q	40c	40c	8c	7
Brightpoint (CELL Quote)	2Q	17c	17c	3c	8
California Micro Devices (CAMD Quote)	1Q	12c	12c	-9c	1
Crompton (CK Quote)	2Q	36c	36c	56c	7
Solutia (SOI Quote)	2Q	32c	32c	61c	9
Spacelabs Medical (SLMD Quote)	2Q	-33c	-33c	27c	3

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Analyst actions

EarthLink(ELNK Quote) beat analysts' estimates yesterday, but was cut to neutral from strong buy at Morgan Stanley Dean Witter and buy from strong buy at ING Barings.

Upgrades

Allergan(AGN Quote): UP to outperform from neutral at Morgan Stanley Dean Witter.

Hotjobs.com(HOTJ Quote): 2000 EPS view UP to a $1.03 loss from a $1.28 loss at PaineWebber.

Newport (NEWP Quote): UP to strong buy from buy at Wit Soundview.

Noble Drilling(NE Quote): 2000 EPS view up to $1.27 from $1.19 at PaineWebber.

J.C. Penney (JCP Quote): UP to buy from attractive at PaineWebber. The upgrade comes on the heels of the appointment of Allen Questrom, formerly CEO of Barneys, as chief executive.

Scientific-Atlanta(SFA Quote): UP near-term buy from accumulate at Merrill Lynch.

USX-Marathon(MRO Quote): UP to market outperformer from performer at Goldman Sachs.

VerticalNet (VERT Quote): price target UP to 80 from 60 at W.R. Hambrecht; 2000 EPS up to a loss of 86 cents from a loss of 87 cents and 2001 EPS up to 7 cents from a loss of 1 cent.

Downgrades

Amazon.com(AMZN Quote): DOWN to market perform from buy.

Cox Communications(COX Quote): DOWN to near-term accumulate from buy at Merrill Lynch.

DSL.net(DSLN Quote): DOWN to market perform from buy at Deutsche Banc Alex. Brown.

eToys(ETYS Quote): DOWN to market outperformer from trading buy at Goldman Sachs.

MGIC Investment(MTG Quote): DOWN to attractive from buy at PaineWebber.

National Information Consortium(EGOV Quote): DOWN to buy from strong buy at Credit Suisse First Boston.

Scientific Atlanta(SFA Quote): 2001 EPS UP to 1.40 from 1.15 at Merrill Lynch.

Initiations

Concurrent Computer(CCUR Quote): NEW outperform at Morgan Stanley.

Harley-Davidson(HDI Quote): NEW market outperformer at Goldman Sachs.

Kenneth Cole(KCP Quote): NEW buy at Banc of America.

MapInfo (MAPS Quote): NEW buy at ABN Amro; price target: 55.

Group Moves

UBS Warburg started coverage on five retailers:

• Wal-Mart(WMT Quote): NEW hold; price target: 65.

• Kohl's(KSS Quote): NEW buy; price target: 80.

• Costco(COST Quote): NEW hold; price target: 36.

• Kmart(KM Quote): NEW reduce.

• Target(TGT Quote): NEW hold; price target: 34.

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Offerings and stock actions

Nokia(NOK Quote) said it will repurchase up to 36 million, or less than 1%, of its 4.86 billion outstanding shares starting Aug. 4. The company said the repurchased shares will be used for several purposes, including to finance business acquisitions and further develop the company's capital structure.

Avici(AVCI Quote) 7-million-share IPO soared, shooting up more than 200%, or 63, to 94.

Belo(BLC Quote) announced it will repurchase up to 25 million shares, or about 21% of its outstanding stock. The company has bought back 1.3 million shares since June as part of a previous buyback.

Lexent(LXNT Quote) was trading up $6 after its $15-a-share IPO of 6 million shares.

LSI Logic (LSI Quote) announced that its board has approved a 5 million share buyback.

NeoPoint withdrew its $75 million IPO, citing unfavorable market conditions. The company, which makes SmartPhones that integrate voice, data transmission and Web access services, counts Siemens as one of its major backers. The offering was to be handled by Merrill Lynch, Chase Hambrecht & Quist, Donaldson Lufkin & Jenrette and U.S. Bancorp Piper Jaffray. NeoPoint had applied for a Nasdaq listing under the symbol "NEOI."

Tripath Tech's initial public offering was cut to 5 million shares at $10 to $12 a share from 7.5 million shares at $12 to $14 a share. The company applied for a Nasdaq listing under the symbol "TRPH."

Wachovia's(WB Quote) board declared a third-quarter dividend of 60 cents a share, up 11% from the 54 cents a share paid in the previous quarter and in the year-ago quarter.

Waste Connections (WCNX Quote) announced an offering of 3.5 million shares.

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After Thursday's Close

Arena Pharmaceuticals (ARNA Quote) priced an initial public offering of 6 million shares above the estimated price range, at $18. The stock was lately up 3 7/16, or about 19%.

Long-distance equipment manufacturer Corvis (CORV Quote) priced its 31.625-million share IPO above the estimated price range, at $36 a share. The stock shot up close to 120%, or 43 to 79.

Illumina (ILMN Quote) priced a 6 million-share IPO at $16, above its estimated price range. Illumina was also up triple digits. It was lately up 110%.

Direct marketer of computers Insight Enterprises (NSIT Quote) announced plans for a 3-for-2 stock split.

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