Midday Movers: Semiconductor Stocks, IPOs Soaring at Midday

Semiconductor stocks were getting a lift from optimistic earnings news and positive research. The Philadelphia Stock Exchange Semiconductor Index was rising 1.2%.

Fairchild Semiconductor (FCS Quote - Cramer on FCS - Stock Picks) jumped 3 7/16, or 10.8%, to 35 5/16 while Applied Materials (AMAT Quote - Cramer on AMAT - Stock Picks) gained 6 3/8, or 7.3%, to 94 1/4.

Fairchild's price target was raised to 52 from 48 by Credit Suisse First Boston. Last night, the company announced its first-quarter revenues were running 6% higher than fourth-quarter 1999. Applied Materials' price target was also raised, to 125 from 112, from CSFB.

Mergers, acquisitions and joint ventures

America Online (AOL Quote - Cramer on AOL - Stock Picks) added 1 7/8 to 63 7/8 after it and Bertelsmann of Germany said they are restructuring their interests in AOL Europe and AOL Australia. Using put and call mechanisms, AOL would ultimately buy out Bertelsmann's share of the interests at a cost of $6.75 billion to $8.25 billion, if the options are exercised. Payment in either cash or stock at AOL's discretion would be made after Jan. 31, 2002.

The companies also set a new global alliance to expand distribution of Bertelsmann's media content and e-commerce properties over AOL's brands worldwide. Under a four-year pact which is valued at $250 million, Bertelsmann will become a preferred provider of media content and e-commerce to the more than 23 million members of AOL's interactive services and over 135 million consumers of its Web-based brands.

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Cruise line giant Carnival (CCL Quote - Cramer on CCL - Stock Picks) dropped 3 15/16, or 14.6%, to 22 5/8 after it and Malaysia's Star Cruises decided to end their previously announced joint venture to buy NCL Holding for $1 billion. Carnival said it and Star could not agree on the detailed terms of the venture.

Separately, Carnival reported first-quarter earnings of 28 cents a share, in line with the 18-analyst First Call/Thomson Financial estimate and up from the year-ago 26 cents. The company warned, however, that weaker ticket pricing due to slower booking patterns, compounded by increased fuel costs, could cause second-quarter profits to be slightly lower than the year-ago second quarter.

The company added, however, that it believes that earnings for the second half of fiscal year 2000 will be stronger and estimates that for the entire fiscal year 2000, earnings will be up 8% to 10% from fiscal year 1999. The 17-analyst estimate calls for the company to earn 37 cents in the second quarter.

Complete Business Solutions (CBSI Quote - Cramer on CBSI - Stock Picks), an information-technology services concern, climbed 3, or 12.5%, to 26 15/16 after it unveiled a new e-business expansion strategy, which will be helped out by $200 million of growth capital from a fund managed by Clayton Dubilier & Rice.

Ford (F Quote - Cramer on F - Stock Picks) climbed 1 15/16 to 45 3/4 after saying it is buying the Land Rover sport utility unit from German luxury automaker BMW for almost $3 billion.

lastminute.com (LMIN Quote - Cramer on LMIN - Stock Picks), which went public this week, will provide NTL (NTLI Quote - Cramer on NTLI - Stock Picks) with content for its interactive shopping and travel channels. lastminute.com added 1/2 to 31 1/2, while NTL gained 3 5/8 to 106 1/16.

Earnings/revenue reports and previews

(Earnings estimates from First Call/Thomson Financial; earnings reported on a diluted basis unless otherwise specified.)

American Xtal Technology (AXTI Quote - Cramer on AXTI - Stock Picks) dropped 3 7/8, or 11%, to 28 15/16 after it said its fourth-quarter earnings will not meet already lowered expectations and also said it will restate its results for the year's first three quarters. The company now expects to report a fourth-quarter profit of 5 cents to 8 cents a share because of higher-than-expected losses at its Lyte Optronics unit. The current five-analyst estimate calls for earnings of 14 cents a share.

Nike (NKE Quote - Cramer on NKE - Stock Picks) lost 1 1/4 to 34 1/2 after posting better-than expected third-quarter earnings last night. The strong results occurred amid a decline in sales, partly because of the dollar's strength against the euro. The company reported earnings of 52 cents a share, 2 cents better than the 13-analyst estimate and up from the year-ago 44 cents. Total revenue fell 1% to $2.162 billion from $2.177 billion a year earlier. European revenue fell 7%, to $558.5 million, hurt by a rising dollar against the common European currency.

Rayonier (RYN Quote - Cramer on RYN - Stock Picks) dropped 1 1/16 despite saying it sees first-quarter earnings beating the seven-analyst estimate of 53 cents, by as much as 15 cents to 20 cents.

Offerings and stock actions

AT&T (T Quote - Cramer on T - Stock Picks) inched up 5/8 to 53 5/8 after it said it will list its wireless tracking stock on the New York Stock Exchange following an IPO expected this spring.

Carolina First (CAFC Quote - Cramer on CAFC - Stock Picks) slipped 1/16 to 14 13/16 after it said it was rescinding its share repurchase program in order to satisfy requirements for its $300 million acquisition of Anchor Financial (AFSC Quote - Cramer on AFSC - Stock Picks).

Cysive (CYSV Quote - Cramer on CYSV - Stock Picks) dropped 2 7/8 to 85 7/8 after it said a secondary offering of 3 million shares was priced at $87 a share. Of the shares being offered, 1.5 million are from Cysive and 1.5 million are from certain stockholders.

Robertson Stephens priced 4.6 million shares of Integrated Information Systems (IISX Quote - Cramer on IISX - Stock Picks) at $15 each, above the expected $12-$14 range. Shares were lately rising 6 7/8, or 45.8%, to 21 7/8.

Donaldson Lufkin & Jenrette priced 8 million shares of Netpliance (NPLI Quote - Cramer on NPLI - Stock Picks) at $18 each, the top of the estimated $17-$18 range. Netpliance was lately moving 4, or 22.2%, to 22.

Goldman Sachs priced 11 million shares of Universal Access (UAXS Quote - Cramer on UAXS - Stock Picks) at $14 each, above the estimated range of $11-$13. The company buys and sells unused network capacity. Shares were lately popping 21 5/16, or 152.2%, to 35 1/8.

Analyst actions

Bear Stearns cut its earnings-per-share outlook for the first and second quarters on Gateway (GTW Quote - Cramer on GTW - Stock Picks). Bear maintained its buy rating on the stock. Gateway rose 1 1/2 to 57 1/2.

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>Adobe Systems (ADBE Quote - Cramer on ADBE - Stock Picks): Price target UP to 120 from 90 at Banc of America. Adobe Systems dropped 5 5/8, or 6%, to 88 7/8.

Aetna (AET Quote - Cramer on AET - Stock Picks): NEW buy at J.P. Morgan; price target: 90. Aetna fell 5/16 to 53 5/16.

American Tower (AMT Quote - Cramer on AMT - Stock Picks): REITERATED buy at Lehman Brothers; price target up to 58 from 55. American Tower advanced 4 3/8, or 9.7%, to 49 3/8.

Applied Micro Circuits (AMCC Quote - Cramer on AMCC - Stock Picks): UP to intermediate-term buy from intermediate term accumulate at Merrill Lynch. The firm also raised its risk rating to high from average. Applied Micro Circuits soared 15 9/16, or 6.3%, to 262 9/16.

Beckman Coulter (BEC Quote - Cramer on BEC - Stock Picks): UP to buy from outperform at Lehman Brothers; price target UP to 72 from 60. Beckman Coulter was down 1 5/16 to 57 7/8.

Bemis (BMS Quote - Cramer on BMS - Stock Picks): UP to strong buy from buy at Deutsche Banc Alex. Brown. Bemis slipped 9/16 to 33 1/4.

BlackRock (BLK Quote - Cramer on BLK - Stock Picks): DOWN to intermediate-term accumulate from buy at Merrill Lynch due to "strong absolute and relative price performance." BlackRock fell 3/8 to 24.

British Telecommunications (BTY Quote - Cramer on BTY - Stock Picks): NEW buy at Donaldson Lufkin & Jenrette. British Telecommunications decreased 3 1/2 to 198 1/2.

Career Education (CECO Quote - Cramer on CECO - Stock Picks): REITERATED strong buy at CSFB. Career Education ascended 7/8 to 33 1/2.

Columbia/HCA (COL Quote - Cramer on COL - Stock Picks): NEW recommended list at Goldman Sachs. Columbia/HCA declined 1/2 to 24 7/16.

Cumulus Media (CMLS Quote - Cramer on CMLS - Stock Picks): DOWN to market performer from strong buy at Banc of America. Cumulus Media slumped 4 1/8, or 24.4%, to 12 13/16.

Forest Laboratories (FRX Quote - Cramer on FRX - Stock Picks): DOWN to hold from buy at ING Barings. Forest Laboratories fell 5 9/16, or 6.7%, to 78 1/16.

Health Management Associates (HMA Quote - Cramer on HMA - Stock Picks): NEW market outperform at Goldman Sachs. Health Management increased 7/8, or 7.1%, to 13 1/4.

Hispanic Broadcasting (HBCCA Quote - Cramer on HBCCA - Stock Picks): DOWN to intermediate-term neutral from intermediate-term accumulate at Merrill Lynch based on valuation. Hispanic Broadcasting dropped 15 1/2, or 12.2%, to 111 9/16.

Jabil Circuit (JBL Quote - Cramer on JBL - Stock Picks): price target UP to 95 from 82 at CSFB. Jabil Circuit fell 2 7/8 to 83 1/8.

KeySpan Energy (KSE Quote - Cramer on KSE - Stock Picks): UP to intermediate-term buy from intermediate-term neutral at Merrill Lynch. KeySpan Energy rose 1 9/16 to 24 7/8.

Nike (NKE Quote - Cramer on NKE - Stock Picks): Fourth-quarter earnings estimate UP to 44 cents from 41 cents at Lehman Brothers. Nike was down 1 3/8 to 34 3/8.

On Assignment (ASGN Quote - Cramer on ASGN - Stock Picks): DOWN to hold from buy at CSFB. On Assignment slipped 2 7/8, or 6.9%, to 39 1/2.

Province Healthcare (PRHC Quote - Cramer on PRHC - Stock Picks): NEW buy at Banc of America. Province Healthcare advanced 1 1/16 to 25 1/16.

Quorum Health (QHGI Quote - Cramer on QHGI - Stock Picks): NEW market perform at Goldman Sachs. Quorum Health dropped 3/4, or 8%, to 8 5/8.

7-Eleven (SVEV Quote - Cramer on SVEV - Stock Picks): NEW buy at Merrill Lynch. 7-Eleven rose 3/32 to 3 7/16.

Sycamore Networks (SCMR Quote - Cramer on SCMR - Stock Picks): REINSTATED at buy at CSFB; price target set at 175. Sycamore Networks ascended 4 9/16 to 142.

Tektronix(TEK Quote - Cramer on TEK - Stock Picks): UP to market outperform from perform at Goldman Sachs. Tektronix was up 3 1/2, or 5.4%, to 68.

Tenet Healthcare (THC Quote - Cramer on THC - Stock Picks): NEW market outperform at Goldman Sachs. Tenet Healthcare moved up 1/16 to 23 15/16.

Triad Hospitals (TRIH Quote - Cramer on TRIH - Stock Picks): NEW market outperform at Goldman Sachs. Triad Hospitals climbed 1/16 to 14 1/16.

Universal Health Services (UHS Quote - Cramer on UHS - Stock Picks): NEW market outperform at Goldman Sachs. Universal Health Services slipped 11/16 to 41 1/16.

Miscellany

Boeing (BA Quote - Cramer on BA - Stock Picks) reached a settlement with its engineers' union, the Society of Professional Engineering Employees in Aerospace, that, if ratified, could end the strike that is in its 38th day. SG Cowen upgraded Boeing to strong buy from buy. Boeing advanced 1 3/4 to 37 3/8.

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Qualcomm (QCOM Quote - Cramer on QCOM - Stock Picks) reached an agreement to settle class-action litigation filed by former employees of the company stemming from its sale of its infrastructure division to Ericsson (ERICY Quote - Cramer on ERICY - Stock Picks).

Under terms of the settlement, $8.9 million, minus attorneys' fees and costs, will be distributed to more than 1,000 former employees covered by the lawsuit. Qualcomm said that, while agreeing to resolve the suit, it paid nothing toward the settlement, with all payments to be made by third parties. Qualcomm said a final settlement-approval hearing has been scheduled for April 28. Qualcomm was up 2 3/16 to 135 1/16, while Ericsson rose 1/16 to 93 5/8.

Viacom (VIA Quote - Cramer on VIA - Stock Picks) said the Supreme Court of the State of New York dismissed all claims of television station group Chris Craft Industries' (CCN Quote - Cramer on CCN - Stock Picks) unit BHC Communications in its litigation over its UPN partnership with Viacom. The ruling cleared the way for completion of Viacom's proposed $37 billion merger with CBS (CBS Quote - Cramer on CBS - Stock Picks). Viacom was up 1 7/8 to 56 1/4.

Wendy's (WEN Quote - Cramer on WEN - Stock Picks), the fast-food chain, said its board named John Schuessler as CEO and president effective immediately. Schuessler previously was president and COO of Wendy's U.S. operations. Wendy's founder R. David Thomas continues as senior chairman of the board. Wendy's was down 3/4 to 17 1/2.

The Inside Wall Street column in Business Week this week, penned as usual by Gene Marcial, reports there's chatter that International Paper (IP Quote - Cramer on IP - Stock Picks) may make a takeover offer for Champion International (CHA Quote - Cramer on CHA - Stock Picks), which has already agreed to be acquired by Finland's UPM-Kymmene.(TSC's Jim Cramer wrote a piece this morning on Marcial's picks.)

Elsewhere, the column offers up a bullish item on Snap-On (SNA Quote - Cramer on SNA - Stock Picks), whose stock some investors say is on the mend.

Also, Cornerstone Internet Solutions (CNRS Quote - Cramer on CNRS - Stock Picks) gets positive mention in the column. The column, citing one unidentified big shareholder in Cornerstone, reports that two things will help juice up the company's stock: Cornerstone will soon have a national rollout of its FOODgalaxy.com service, and the company's forming a strategic tie-up with a giant financial-services company to provide credit facilities to subscribers of FOODgalaxy.com. The column says FOODgalaxy.com allows restaurants and other food-service establishments to post lists online of their supply requirements.