This morning, Goldman Sachs analyst Deane Dray said he believes that Agilent (A) - Get Report, a spin-off of Hewlett-Packard (HWP) , could be named to the S&P 500. Dray said the addition would make index funds "net buyers" of the stock and he continues to recommend the buying the shares. Agilent added 13 5/16, or 17.3%, to 89 7/8.
first-quarter earnings of 19 cents a share, topping both the 27-analyst
First Call/Thomson Financial
estimate and the year-ago report of a 16-cent profit. The report included a 2-cent gain on outside investments.
The PC maker said revenue was $7.28 billion, a 31% increase from last year's $5.54 billion report. Vice Chairman Kevin Rollins, in an interview with
, said he continues to see future revenue growing in the 30% range.
"The numbers were good," said Brian Gilmartin, portfolio manger at
Trinity Asset Management
. "Dell's revenues exceeded Dan Niles' estimate, which was pretty aggressive by $150 million," he said referring to the
hardware analyst's income-statement model. "They're notebook business as a percentage of core systems revenue, jumped 7% in terms of year over year, that's where I think the number was made."
Although the company saw solid sales in the U.S. and Asia, Dell said its European business is still dragging. Rollins said Europe, which only had a first-quarter growth rate of 17%, would have a positive effect on revenue growth by next year. "We see it performing by the end of the year at where it can, and should (be) -- at or above the corporate average," said Rollins. Dell boosted 5 3/16, or 11.6%, to 49 7/8.
joint newsroom covered the Dell release in a separate
story, and see
The Night Watch for a look at Dell's postclose trading activity.
Mergers, acquisitions and joint ventures
, which announced this week stronger-than-expected profits for its third quarter, said it would buy
, a Swedish company that develops Metropolitan Dense Wave Division Multiplexing technology used by Internet service providers, for $800 million in stock. The deal, which will expand Cisco's optical networking capabilities, is expected to lead to a 5-cent charge per share. Cisco lost 1/4 to 60.
Last weekend, an article in
questioned the company's acquisition practices. A week ago, the company announced plans to acquire
for $5.7 billion. The deal with Qeyton will be Cisco's 11th acquisition since the beginning of the year. ArrowPoint slipped 1 1/16 to 124 5/8.
For more on Cisco, take a look at the
recent story from
Carl Icahn has devised a possible $22 a share offer for the outstanding shares of
Nabisco Group Holdings
that it doesn't already hold, according to a
Securites and Exchange Commission
filing. The plan suggests that Icahn and his shareholder group,
High River LP
, which owns a 9.6% interest in NGH, would pay Nabisco holders $19 in cash and a two-year note with a $3 principal in exchange for each share they own. Nabisco Group Holdings holds a 90% interest food company,
. Nabisco Group Holdings gained 2 3/16, or 12.5%, to 19 3/4, while Nabisco Holdings lifted 7/16 to 44.
said it entered a $1.56 billion deal to buy
, a food-equipment maker.
According to the terms, Ingersoll-Rand, which makes refrigeration products, will pay $29 a share for 50.6 million shares of Hussman. Ingersoll-Rand will also take on roughly $275 million of Hussman's debt. The acquisition will be accretive to fiscal 2000 earnings by 2 cents to 5 cents a share, and 15 cents to 20 cents in fiscal 2001. Ingersoll-Rand increased 9/16 to 46 1/4.
Spain-based Web company
confirmed it is negotiating a possible deal with
. According to
, the pact could end in a complete merger. Terra Networks rose 2 5/8 to 59 3/8, while Lycos moved up 1/8 to 54 1/8.
British advertising group
said it is on track to unveil an agreed takeover of
Young & Rubicam
to create the word's biggest advertising group, industry sources said. WPP said the merger would enhance earnings by 3% to 4% and that $30 million in cost synergies from the merger is a conservative estimate. Young & Rubicam's CEO Thomas Bell Jr. said he will leave the group after the merger is completed. WPP slid 3 1/2, or 5.5%, to 60, while Young & Rubicam declined 5/8 to 47 3/4.
Earnings/revenue reports and previews
Earnings estimates from First Call; new highs and lows on a closing basis unless otherwise specified. Earnings reported on a diluted basis unless otherwise specified.
posted first-quarter earnings of 27 cents a share, a penny better than the 27-analyst estimate and up from the year-ago 21-cent profit. Intimate Brands dropped 11/16 to 45 13/16.
Offerings and stock actions
Standard & Poor's
would take over
Central & South West's
spot in the
. Central & South West is being acquired by S&P 500 component
American Electric Power
. MedImmune jumped 9 13/16, or 6.3%, to 164 1/2, while Central & South West shed 1/16 to 21 1/4.
priced a 10.75 million-share offering at $74 a share. AES advanced 3 11/16 to 78 1/16.
set a 3-for-1 stock split. Cox was up 2 5/8 to 83 1/4.
added 3/16 to 40 7/8 after it said it plans to buy back $200 million shares in fiscal 2000.
said it is withdrawing an initial public offering because of changed circumstances in the markets. The Denver-based company, which provides broadband communications services, was planning an offering of 8.925 million common shares in a range of $13 to $15 a share, according to an April IPO filing with the
Securities and Exchange Commission
declined 1/2 to 22 after it set a $30 million stock buyback.
Park Place Entertainment
gained 9/16 to 13 11/16 after it set a share repurchasing program for up to 12 million shares.
lifted 5/8 to 91 1/16 after it set a 2-for-1 stock split.
: ADDED to purchase list at
. Brocade jumped 5 to 106 7/8.
: UP to buy from hold at
Credit Suisse First Boston
. Gap tacked on 11/16 to 36.
: UP to buy from hold at
. Nordson climbed 1 1/2 to 44 5/8.
: UP to outperform from market perform at
. Sun Microsystems added 4 11/16, or 6.1%, to 81 1/2.
: UP to buy from hold at CSFB. Unifi mounted 1 7/16, or 10.6%, to 14 15/16.
: UP to attractive from neutral at
. Waste Management tacked on 1/4 to 19 3/16.
: DOWN to market perform from buy at
. Chase Manhattan climbed 1 5/8 to 71 5/8.
Golden State Vintners
: DOWN to market perform from buy at J.P. Morgan. Golden State Vintners slid 1/4, or 5.5%, to 4 1/4.
: DOWN to long-term neutral from accumulate at
. Navigant slipped 1 1/2, or 23%, to 5.
: NEW strong buy at
. Accrue Software added 3/4 to 19 7/8.
: NEW buy at
CIBC World Markets
. CacheFlow leaped 4 1/8, or 9.5%, to 47 1/2.
: NEW strong buy at CSFB. Cell Therapeutics mounted 3 3/8, or 22.5%, to 18 3/8.
: NEW buy at CSFB. Crompton edged up 5/16 to 13.
: NEW strong buy at S.G. Cowen. Tibco mounted 3 1/2, or 5.9%, to 62 1/2.
: NEW strong buy at
, price target of 60. 24/7 Media climbed 1 1/2, or 8.5%, to 19 1/8.
UBS Warburg Dillon Read
initiated coverage of beverage companies:
- Anheuser-Busch (BUD) - Get Report: strong buy, price target: 95. Bud lost 2 1/16 to 76 7/8.
Coca-Cola Enterprises (CCE) : hold, price target: 23. Coca-Cola Enterprises declined 1/8 to 21 1/2.
Pepsico (PEP) - Get Report: buy, price target: 46. Pepisico was off 1/2 to 39 1/2.
Pepsi Bottling Group (PBG) : strong buy, price target: 30. Pepsi Bottling Group added 1 1/2, or 6.4%, to 24 11/16.
Warburg Dillon Read initiated coverage of two communications companies:
- Seagram (VO) - Get Report at buy. Seagram fell 7/8 to 51 1/8.
USA Networks (USAI) - Get Report at strong buy. USA Networks bounced 5/8 to 23.
ING Barings initiated coverage of two bank stocks:
- Bank One (ONE) - Get Report at hold. Bank One climbed 3/8 to 30 7/16.
US Bancorp (USB) - Get Report at buy, price target: 28.
US Bancorp advanced 1 1/2, or 6.5%, to 24 1/4.
skidded 1 1/4 to 42 1/4 after it said it upped its fares by $5 to $15 one-way on domestic flights due to rising fuel prices.
said it would end car production at its Dagenham plant near London starting in the first quarter of 2002 as part of the reorganization of its European business. About 1900 jobs will be cut, but the company promised a $500 million investment and 500 new jobs to make the plant its global center of diesel engine production.
Ford said the reorganization effort is aimed primarily at reducing overcapacity in Europe. Ford, which had capacity last year to build 2.2 million cars in Europe, but sold only 1.65 million cars and trucks, said it doesn't expect to sell more than 2 million vehicles a year in Europe over the next several years.
In related news, German luxury car maker
said it was expecting to reach an agreement to sell its
line to Ford soon, possibly in the next couple of days. Ford has agreed to pay about $2.70 billion for the line. Ford gained 7/16 to 53 3/8.
said G. Richard Thoman has stepped down from his roles as president and CEO. Xerox said chairman Paul Allaire would replace Thoman as CEO in a two-year term, while Anne Mulcahy, general markets operations president, was tapped as its new president and COO.
Mulcahy is also up for election to Xerox's board on May 18 during its annual shareholders meeting. Thoman's resignation comes after several profit shortfalls. Since the beginning of September, the stock has lost almost half its share value, falling from a trading range of 49 to Thursday's closing price of 25 1/2. A former
executive, Thoman came to Xerox as its president and COO. In April 1999, Thoman replaced Allaire in the role of CEO. Xerox bounced 1 1/2, or 5.8%, to 27.