Company Report: U.S. Trust Blasts Up 69% on Schwab Deal

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Earnings estimates from First Call/Thomson Financial; earnings reported on a diluted basis unless otherwise specified. New highs and lows on a closing basis unless otherwise specified.

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Merger news in the financial sector lifted stocks, with the

American Stock Exchange Broker/Dealer Index

up 3.2%.

U.S. Trust

(UTC)

soared 54 1/8, or 68.6%, to a record 133 after it agreed to merge with

Charles Schwab

(SCH)

in a stock deal valued at $2.7 billion. Shares of Schwab sailed up 3 3/8, or 9%, to 41. According to the terms, U.S. Trust shareholders would get 3.427 shares of Schwab for each U.S. Trust share.

For additional coverage of Schwab's

merger, check out a separate story from

TheStreet.com/NYTimes.com

joint newsroom.

Wells Fargo

(WFC) - Get Report

also enjoyed a pop, rising 2 1/8, or 5.6%, to 40 7/16 after it said after yesterday's close that it signed a definitive merger agreement with

National Bancorp of Alaska

(NBAK)

, Alaska's largest bank, in a stock deal worth about $907 million. National Bancorp of Alaska inched up 3/4 to 29.

NatWest Group

(NW)

gained 2 to 123 after

Royal Bank of Scotland

shareholders gave their backing to the bank's bid for

National Westminster Bank

at a special meeting in Edinburgh.

Mergers, acquisitions and joint ventures

BP Amoco

(BPA)

added 13/16 to 57 3/8 after it decided to force the hand of the

Federal Trade Commission

over its planned takeover of

Atlantic Richfield

(ARC) - Get Report

, triggering a 20-day regulatory period after which the U.S. antitrust body must decide whether to go to court to block the deal. Arco rose 2 1/4 to 79 1/4.

Applied Materials

(AMAT) - Get Report

dropped 2 5/8 to 124 1/2 after it said that it would acquire

Etec Systems

(ETEC)

in a stock swap worth $1.77 billion based on the companies' value at the close of trading Wednesday. Shares of Etec jumped 33 1/16, or 77.5%, to 75 13/16.

Cypress Group

said it has agreed to pay $100 million for the majority of

Hannaford's

(HRD)

Internet grocery division. Hannaford slipped 3 1/16 to 69 1/2.

DoubleClick

(DCLK)

hopped 7 1/2 or 6.9%, to 115 3/4 after it said it has taken a 30% interest in closely held

ValueClick

, which charges advertising fees depending on the number of times a user opens an ad on a Web page. According to the deal's terms, ValueClick will get $75 million in DoubleClick stock and $10 million in cash. The two companies would combine technology, which would enable Web publishers to post ads that automatically target the viewer.

For more on this announcement, check out a separate

story from the

TheStreet.com/NYTimes.com

joint newsroom.

Ericsson

(ERICY)

gained 3 1/2, or 5.7%, to 65 7/16 after it said it entered a pact with

Extended Systems

(XTND)

to improve the transmission of information between mobile phones and computers. Extended Systems popped 10 3/16, or 23%, to 54 7/16. Ericsson said Extended would lend its

XTNDConnect

PC mobile data synchronization and management software to certain Ericsson mobile phones.

NBC Internet

(NBCI)

rose 2 9/16 to 77 1/2 after it said it has agreed to a deal with

Asiacontent.com

to roll out an Asian Internet service. NBC Internet, which would hold a 35% interest in the venture, said that the service would be started in Korea, Hong Kong and Singapore. NBC Internet said it has an option to boost its interest to 60% and plans to start Internet services in other Asian markets in the months ahead.

Lockheed Martin

(LMT) - Get Report

lost 7/16 to 20 3/4 despite saying it received a $172 million undersea systems pact from the Navy.

Warner-Lambert

(WLA)

, the target of an unsolicited $74.9 billion takeover bid from

Pfizer

(PFE) - Get Report

, agreed to talk to its unfriendly suitor, putting its $53.8 billion merger with

American Home Products

(AHP)

in jeopardy. Warner jumped 5 1/2, or 6.3%, to 92 5/16, Pfizer gained 1 3/4, or 5%, to 36 7/8 and American Home Products inched up 7/8 to 42 5/8.

Ryan Beck

said it raised its rating on

Pfizer

to buy from hold Earlier today,

Donaldson Lufkin & Jenrette

analyst Kent Blair raised his earnings estimates on Warner-Lambert. Earnings-per-share for 1999 were raised to $1.94 from $1.93, and 2000 estimates were upped to $2.34 from $2.30. Warner-Lambert inched up 3/16 to 87.

For additional coverage of the new round of merger talks, check out a separate

story from the

TheStreet.com/NYTimes.com

joint newsroom.

Earnings/revenue reports and previews

ATI Technologies

(ATYT)

lost 1 5/8, or 11.4%, to 12 11/16 after it posted first-quarter earnings of 25 cents a share, in line with the eight-analyst estimate and up from the year-ago 2-cent profit.

Biomet

(BMET)

climbed 2 9/16, or 6.4%, to 42 9/16 after it said it will take a $9 million pretax charge in the November quarter for litigation.

Blackrock

(BLK) - Get Report

slipped 3/16 to 16 15/16 after it posted fourth-quarter earnings of 27 cents a share, in line with the five-analyst estimate and up from the year-ago 24 cents.

Chicago Title

(CTZ)

rose 7/8 to 46 9/16 after it said it would report fourth-quarter earnings of roughly $1.25 a share, beating the two-analyst estimate of $1.05 per share.

Convergys

(CVG)

added 15/16 to 29 7/8 after it said it expects to report special one-time charges in the fourth quarter, but said it sees results meeting consensus estimates, excluding the one-time items. The 12-analyst estimate calls for earnings of 28 cents a share.

Delta Air Lines

(DAL) - Get Report

dropped 2 3/16 to 49 13/16 despite saying it expects to post second-quarter earnings above the 11-analyst estimate of $1.06 a share. The company said it would roll out an early retirement medical program, which would result in a one-time fourth-quarter charge between $125 million and $135 million.

Entergy

(ETR) - Get Report

lost 1/2 to 25 5/16 after it said its 2000 earnings estimate remains on target despite plant delays.

Liposome

(LIPO)

lost 7/8, or 5.7%, to 14 11/16 despite saying it expects to post fourth-quarter earnings of 9 cents a share to 12 cents, beating the three-analyst estimate of 8 cents a share. The company also said it sees 1999 earnings between 30 cents a share to 33 cents, also edging out the three-analyst estimate of 27 cents.

National Commerce Bancorp

(NCBC)

inched up 5/8 to 20 13/16 after it posted fourth-quarter earnings of 27 cents a share, in line with the 14-analyst estimate and up from the year-ago 22 cents.

Omnova

(OMN) - Get Report

rose 3/8, or 5%, to 7 7/8 after it posted third-quarter earnings of 19 cents a share, missing the two analyst-estimate of 21 cents and down from the year-ago 34 cents.

PNC Bank

(PNC) - Get Report

jumped 3 13/16, or 9.1%, to 45 13/16 after it posted fourth-quarter earnings of $1.01 a share, in line with the 22-analyst estimate, and up from the year-ago 92 cents a share.

Rational Software

(RATL)

ran up 5 1/16, or 9.8%, to a record 56 5/8 after it reported third-quarter earnings of 27 cents a share, beating the 10-analyst estimate of 24 cents and the year-ago 20 cents.

Credit Suisse First Boston

upped its price target on Rational to 71 from 52.

Tommy Hilfiger

(TOM)

fell 3 3/16, or 16.6%, to 16 after it warned investors it expects to post third-quarter earnings of between 58 cents to 64 cents a share, greatly missing the 14-analyst estimate of 73 cents but possibly exceeding the year-ago 61-cent profit. The company is blaming pricing pressure for the disappointing outlook.

Tommy is forecasting fourth-quarter earnings between 35 cents to 45 cents a share, also missing the 13-analyst estimate of 58 cents.

Merrill Lynch

cut its rating on the stock to near-term neutral from buy and

Morgan Stanley Dean Witter

sliced its rating to outperform from strong buy.

For more on the tune of Tommy's

earnings, check out a separate story from the

TheStreet.com/NYTimes.com

joint newsroom.

UAL's

(UAL) - Get Report

shed 9 7/8, or 13.2%, to 64 7/8 after its

United Airlines

unit forecast its fiscal 2000 fully distributed earnings per share at $7 to $9. United said its cost-control program would not offset increased wages and rising fuel prices, which have become challenges for the company. United said it expects revenue improvement in three out of four global regions. In a research note,

Salomon Smith Barney

described the reaction to UAL's announcement as "overdone" and said it presented an excellent buying opportunity. Merrill Lynch cut its near-term rating on UAL to neutral from accumulate.

Separately, the company said it would launch an e-commerce division to increase Internet sales.

U.S. Trust posted third-quarter earnings of 96 cents a share, beating the eight-analyst estimate of 92 cents and up from the year-ago 76 cents.

Offerings and stock actions

Gene Logic

(GLGC)

dropped 4 1/8, or 13.9%, to 25 3/4 after it said it has filed with the

Securities and Exchange Commission

for a 3.5 million-share offering.

Infinity Broadcasting

(INF) - Get Report

inched up 5/8 to 36 1/4 after it said it added $500 million of Class-A common shares to its current stock buyback.

Solectron

(SLR)

rose 1 9/16 to 85 7/16 after it said it set a 2-for-1 stock split.

Viant

(VIAN)

jumped 8 3/8, or 9.9%, to 93 after it said it has set a shareholder meeting for Feb. 2 to vote on increasing its outstanding shares. Shareholder approval would pave the way for a 2-for-1 stock split.

Washington Post

(WPO)

popped 10 3/16 to 583 7/16 after it said its board of directors approved the repurchase of 500,000 class B common shares.

Analyst actions

Merrill Lynch

raised its intermediate-term rating on

Allied Capital

(ALLC)

to buy from accumulate. Shares of Allied Capital bounced up 1 1/8, or 6.8%, to 17 5/8.

Morgan Stanley Dean Witter

upgraded shares of

Apple

(AAPL) - Get Report

to outperform from neutral. Apple popped 7, or 8%, to 94 5/16. Credit Suisse First Boston raised 2000 earnings estimates on Apple to 91 cents a share from 88 cents. Shares of Apple shot up 9 1/2, or 10.9%, to 96 3/4.

Warburg Dillon Read

initiated coverage of

Biomatrix

(BXM)

with a buy rating and set a price target of 32. Shares of Biomatrix added 1 3/8, or 5.9%, to 24 1/2.

Salomon Smith Barney

rolled out coverage of

Ciena

(CIEN) - Get Report

with a buy rating and price target of 75. Shares of Ciena mounted 3 1/16, or 5.1%, to 62 1/2.

SG Cowen

upped its rating on Chile's

CTC

(CTC)

and

Telecom Argentina

(TEO) - Get Report

to strong buy from buy. Shares of CTC lifted 3, or 16.5%, to 21 1/8.

ABN Amro

upped its price target on

Illinova

(ILN)

to 54 from 47. Illinova gained 1/16 to 43 7/8.

J.P. Morgan upgraded shares of

IMC Global

(IGL)

to a buy rating and set a price target of 25.

Salomon raised

Intertrust Technologies

(ITRU)

to a buy from a neutral. Shares of IMC Global tacked on 3/4 to 18 3/4 and Intertrust Technologies jumped 12 13/16, or 11.2%, to 127.

Credit Suisse First Boston raised its 12-month price target on

Kopin

(KOPN) - Get Report

to 60, and upped its 2000 earnings estimate to 47 cents a share from 40 cents. Shares of Kopin rose 8 3/4, or 20%, to 52 1/2.

Dresdner Kleinwort Benson

raised its rating on

Lexington Corporate Properties

(LXP) - Get Report

to add from hold. Shares of Lexington Corporate Properties slid 1/8 to 10 11/16.

Goldman Sachs

said analyst May-Kin Ho widened his 2000 loss view for gene manipulation company

Maxygen

(MAXY)

to a loss of 76 cents a share from a loss of 49 cents. Shares of Maxygen slipped 1 3/16 to 81.

Deutsche Banc Alex. Brown

initiated coverage of

OnDisplay

(ONDS)

with a buy rating. Shares of OnDisplay mounted 10, or 11.3%, to 97 3/4.

J.P. Morgan

raised its rating on

Potash

(POT)

to long-term buy with a price target of 65. Shares of Potash climbed 7/8 to 57 1/2.

Morgan Stanley initiated coverage of

Teligent

(TGNT)

with an outperform rating. Shares of Teligent mounted 5 15/16, or 10%, to 65 1/4.

Salomon started coverage of

Sycamore Networks

(SCMR)

as an outperform and set a price target of 315. Shares of Sycamore Networks shed 3/4 to 258 1/4.

Donaldson Lufkin & Jenrette

said analyst Kent Blair raised his earnings estimates on

Warner-Lambert

(WLA)

. Earnings for 1999 were raised to $1.94 from $1.93 a share, and 2000 estimates were upped to $2.34 from $2.30. Shares of Warner-Lambert advanced 5 1/2, or 6.3%, to 92 5/16.

Miscellany

Chevron

(CHV)

added 13/16 to 87 9/16 after it said it will pay a $95 million civil fine to settle charges that the firm underpaid royalties on crude oil drilled from federal and Indian leases.

As originally published, this story contained an error. Please see

Corrections and Clarifications.