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IBM, Texas Instruments Plummeting on Downgrades

(Updated from 9:50 a.m. EDT)

Look for the analysts who follow big tech companies to have a busy day.

Analysts have started circling


(IBM) - Get International Business Machines (IBM) Report

, eyeing Big Blue's meaty carcass after the company announced disappointing third-quarter earnings last night.

wrote a separate

story that looked at IBM's earnings.

Merrill Lynch

lowered its 2000 and 2001 earnings-per-share estimates, dropping 2000 to $4.43 from $4.48 and 2001 to $4.93 from $4.99.

Prudential Securities

cut its rating on the company to hold from accumulate.

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Bear Stearns

kept its buy rating on IBM, but this morning slashed its 2000 and 2001 estimates on the company. Revenue in 2000 is now expected to come in at $87.8 billion from the previous call of $90.3 billion. Estimates for 2001 revenue were trimmed to $95.2 billion from $98.8 billion. The analyst maintained fiscal earnings per share outlook, keeping 2000's $4.45 a share earnings estimate and 2001's $5 call.

Goldman Sachs

removed IBM from its recommended list.

In early trading, IBM was getting destroyed, trading nearly more than $18 lower and hacking more than 109 points out of the reeling

Dow Jones Industrial Average.


Lehman Brothers

analyst Dan Niles this morning downgraded

Texas Instruments

(TXN) - Get Texas Instruments Incorporated Report

to neutral. The chipmaker is set to release earnings after the bell this evening. Niles didn't adjust Texas Instruments' 2000 or 2001 earnings per share outlook, at least not yet, but did say that they will "most likely need to be lowered."

Texas Instruments was off 4.2% to $38.50.