Updated from 4:26 p.m. EDT

Harry Potter

was spreading some of his magic to

Scholastic

(SCHL) - Get Report

, which ended the day up 1/2 to 63 1/4, and

Enesco

(ENC)

, up 2 7/16, or 27.1%, to 11 7/16, which were rallying ahead of the release of the latest book in the Potter series.

Scholastic publishes the series, while Enesco, a gift and collectible company, has a licensing agreement with

Warner Brothers

to develop products based on the series. Warner Brothers is a unit of

Time Warner

(TWX)

, which got a boost up 1 5/16 to 82 1/16. Despite the book being

Amazon.com's

(AMZN) - Get Report

biggest seller in the company's history, the stock was up just 1/16 to 36 1/8.

Also,

Credit Suisse First Boston

started coverage on Scholastic with a buy rating and price target of 75.

Compuware

(CPWR)

, which fell 10.7%, or 1 3/32 to 9 5/32, warned that it will miss analyst estimates for its first quarter, citing a weak software market and canceled deals. A company spokesperson also said that several large deals did not come in at the end of the quarter. The company said it's expecting earnings between 7 cents and 9 cents. The

First Call/Thomson Financial

14-analyst estimate is currently 15 cents a share for the quarter. Compuware said that disappointing software sales likely will lead to revenue between $490 million and $510 million.

Merrill Lynch

(MER)

, which slipped 3/4 to 123 1/4, may cut up to 2,000 jobs, mainly from its brokerage division, in a bid to cut costs,

The Wall Street Journal

reported people close to the firm as saying. The cut would be about 5.4% of its brokerage department's workforce and close to 3% of the firm's entire workforce of 68,600. The company said executives involved in "nonfield-related jobs," including marketing, strategy and technology, will be cut, not brokers.

The

Journal

said this would represent the largest mass layoff at the company since 1998, when Merrill cut 3,400 employees amid big bond market losses and fallout from its ties to hedge fund

Long-Term Capital Management

, which nearly collapsed.

TheStreet.com/NYTimes.com

joint newsroom wrote about the

layoffs in a story this morning.

Yahoo!

(YHOO)

was downgraded by

Deutsche Bank Alex. Brown

this morning. Andrea Williams Rice, the analyst there, cited a pullback in dot-com spending, noting that most of the advertising on Web sites still comes from other Web sites. She also downgraded several other Net companies (see below).

"With access to public and private capital nearly nonexistent, the likelihood of revenue shortfalls from those who rely on these companies is quite high," she wrote, adding that Yahoo! is likely to see fewer revenues than it expects over coming quarters. Yahoo! fell 5 7/8 to 116 1/2.

United Airlines

, the principal subsidiary of

UAL Corp.

(UAL) - Get Report

, has been forced to cancel 4,800 flights because many of its union pilots are refusing to work overtime,

The Washington Post

reported this morning. UAL slid 3/8 to 57 11/16.

Mergers, acquisitions and joint ventures

Cisco

(CSCO) - Get Report

will buy privately held

Netiverse

for $210 million in stock. Netiverse, of San Jose, Calif., develops technology that accelerates Web content delivery. Cisco already has a minority stake of 20% in Netiverse. The acquisition, which is Cisco's 13th this year, is expected to close in Cisco's fiscal 2001 first quarter. In connection with the acquisition, Cisco expects a one-time write-off of up to 2 cents a share. The stock was 5/8 higher at 65 3/8.

Dime Bancorp

(DME)

said it will accept a $238 million investment from

Warburg Pincus Equity Partners

and buy back 12.5% of its stock after an unsuccessful two-month effort to sell itself. Dime also announced that banking veteran Tony Terracciano will replace Lawrence Toal as chairman. Toal will retain his position as CEO.

Dime has been fighting a hostile bid from

North Fork Bancorp

(NFB)

that it rejected as inadequate. Dime was down 1 1/4, or 7.3%, to 15 13/16, while North Fork was 3/16 higher to 16 1/8.

Microsoft

(MSFT) - Get Report

announced that it will limit its investment in British cable company

Telewest Communications

to a minority stake. According to the European Commission, this means Microsoft no longer has joint control over Telewest, leading it to withdraw its notification of the original deal, under which it was acquiring control with

Liberty Media

(LMGA)

. Microsoft was up 1 1/16 to 82. Liberty was up 1/16 to 25 1/5.

Royal Dutch/Shell Group

(RD)

, which was 7/8 higher to 62, is appealing to Australian oil and gas producer

Woodside Petroleum

to reconsider its asset-swap proposal that would raise the Anglo-Dutch company's stake in the company to 60% from about 34.3%.

Woodside said it is standing by its decision. Woodside's board rejected the offer because it believed the deal wouldn't significantly add to future earnings, didn't offer a high-enough premium for control, and because it did little to help the company diversify more into crude oil.

Sycamore Networks

(SCMR)

jumped 16 3/4, or 15.2%, to 126 15/16 after it signed a contract to supply products to

360networks

(TSIX)

, worth up to $420 million. 360networks was 1/16 lower to 15 7/16.

An online brokerage venture set up in March by

Bank of Tokyo Mitsubishi

and

TD Waterhouse

(TWE)

will open for business Monday, the companies said Friday. The venture will provide online trading in stocks and investment trusts. TD Waterhouse was off 1/4 to 17 3/4.

Wells Fargo

(WFC) - Get Report

signed a definitive agreement to buy

Brenton Banks

(BRBK)

in a stock deal worth $264.5 million. Wells Fargo expects to close the deal in the second half of the year. Wells Fargo was up 3/16 to 42 11/16, but Brenton Banks was down 1 1/8, or 8.5%, to 12 3/16.

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Earnings/revenue reports and previews

Airborne Freight

(ABF)

said its second-quarter earnings will be between 20 cents and 30 cents a share, below the 13-analyst estimate of 44 cents. The company said daily domestic shipments were up less than 1% from the second quarter of 1999 and were down 2% from the first quarter.

The stock was cut to buy from top performer at

Donaldson Lufkin & Jenrette

and its 2000 EPS estimate was cut to $1.25 from $1.80 at

Goldman Sachs

. Despite the news, the stock rose 1 1/4, or 7.4%, to 18 3/16.

Agribrands

(AGX) - Get Report

, down 9/16 to 40 5/8, posted third-quarter earnings of 92 cents a share, which includes a $1.2 million restructuring charge. The single-analyst estimate was for $1.23 a share, while the year-ago earnings were $1.27.

Applied Microsystems

(APMC)

, which provides services for developing software, said it expects a larger second-quarter loss than expected. The company expects to lose between 33 and 38 cents per share for the quarter, compared with a 31-cent loss at the same time last year. The

First Call/Thomson Financial

estimate was for a 19-cent loss -- but there's just one broker covering the company, according to First Call. Applied Microsystems tumbled 11/16, or 10%, to 6 3/16.

TheStreet.com/NYTimes.com

joint newsroom wrote about the

warning in a story this morning.

Medical-device maker

ATS Medical

(ATSI)

, which was 15/16, or 6.3%, lower to 13 15/16, said it expects to report a second-quarter loss and lower sales due to a weak euro. The company said it sees a loss of 1 cent a share, worse than the four-analyst estimate of a 1-cent profit.

Brio

(BRIO)

plummeted 57.3%, or 11 11/32, to 8 15/32, after it reported a first-quarter loss of 16 cents, missing the six-analyst estimate of 8 cents. The year-ago loss was 2 cents a share, excluding the write-off of nonrecurring operating expenses of $1.2 million associated with the merger with

Sqribe Technologies

.

Brio said the first quarter of its fiscal year is historically its toughest, but "we didn't anticipate this shortfall of revenue or earnings." Brio said the last day of the quarter, about $5 million of forecasted large deals were delayed.

Dionex

(DNEX)

, off 7/8 to 29 1/2, warned it sees lower fourth-quarter revenue, while earnings are seen below expectations at 32 cents to 34 cents. The five-analyst estimate calls for 43 cents a share.

La-Z-Boy

(LZB) - Get Report

is anticipating first-quarter earnings to be between 17 cents and 21 cents a share, lower than the year-ago earnings of 25 cents a share. The

First Call/Thomson Financial

five-analyst estimate is 25 cents. The company's president and chief operating officer, Gerald Kiser, said a sales slowdown in the industry was the reason. It slipped 1/8 to 15.

Metron Technology

(MTCH) - Get Report

reported fourth-quarter earnings of 21 cents a share, a penny shy of the four-analyst estimate but up from the year-ago 1 cent a share, which includes items. Metron slid down 1/4 to 12 7/8.

Discount retailer

99 Cents Only Stores

(NDN)

said second-quarter

same-store sales rose 5.3%. The stock rose 2 1/16, or 5.2%, to 41 1/2.

Contact lens maker

Ocular Sciences

(OCLR) - Get Report

was down 5/16 to 12 after it warned it sees second-quarter earnings below estimates, saying a takeover battle disrupted operations. The company said results were affected by an eight-week period of operational turmoil when

Bausch & Lomb

(BOL)

interrupted Ocular's proposed friendly merger with

Wesley Jessen Visioncare

(WJCO)

.

Ocular Sciences said it now expects to report earnings between 20 cents and 23 cents a share, including one-time charges totaling 5 cents. The current three-analyst estimate is for 41 cents. Bausch & Lomb fell 1 to 76 5/16, while Wesley Jessen was down 3/16 to 37 5/16.

Starbucks

(SBUX) - Get Report

said June same-store sales rose 9%. It got a boost on the news, up 3 3/4, or 9.9%, to 41 13/16.

Chase Hambrecht & Quist

raised its price target to $46 from $38.

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Analyst actions

Upgrades

Bowater

(BOW)

: UP to market outperformer from market performer at

Goldman Sachs

. Bowater declined 1/8 to 45 3/8.

Core Laboratories

(CLB) - Get Report

: UP to strong buy from buy at

Credit Suisse First Boston

. Core Laboratories stumbled 11/16 to 18 5/16.

Dollar General

(DG) - Get Report

: UP to strong buy from outperform at

Morgan Stanley Dean Witter

. Dollar General popped 1 1/2, or 7.9%, to 20 7/16.

Dura Pharmaceuticals

(DURA) - Get Report

: UP to accumulate from neutral at

Merrill Lynch

. Dura Pharmaceuticals climbed 2 1/8, or 13.3%, to 18 1/16.

Jacobs Engineering

(JEC) - Get Report

: UP to buy from hold at Credit Suisse First Boston. Jacobs Engineering added 13/16 to 33 13/16.

Pepsi Bottling Group

(PBG)

: price target UP to 36 from 30 at UBS Warburg. Pepsi Bottling Group slipped 3/16 to 29.

PeopleSoft

(PSFT)

: UP to outperform from neutral at

Lehman Brothers

. PeopleSoft bounced 2 1/2, or 15.7%, to 18 3/8.

Trigon Healthcare

(TGH) - Get Report

: Deutsche Bank Alex. Brown raised its price target to $65 from $54, upped 2000 earnings estimates to $3.07 a share from $3.05 a share, and 2001 estimates to $3.59 from $3.57. Trigon Healthcare fell 2 to 55 1/2.

Downgrades

Pepsi

(PEP) - Get Report

: DOWN to outperform from buy at

Salomon Smith Barney

. Salomon, however, raised earnings estimates for the company, to $1.40 a share from $1.39 for 2000, and $1.59 from $1.55 for 2001. It also upped its price target to $50 from $45. The downgrade was undertaken because Pepsi's shares have risen 25% this year, and the firm said the earnings multiple is already too high. Pepsi declined 1 7/16 to 42 7/16.

BMC Software

(BMCS)

: DOWN to buy from strong buy at

Credit Suisse First Boston

after the company's Wednesday earnings warning. BMC Software edged up 2 1/8, or 10%, to 23 3/16.

Cyberonics

(CYBX)

: estimated fiscal 2001 earnings per share DOWN to a loss of $0.48 per share from a profit of $0.01 at

Banc of America

. Cyberonics edged up 3/16 to 13 3/8.

Dionex

(DNEX)

: DOWN to neutral from long-term buy at

Wachovia Securities

. Dionex lost 7/8 to 29 1/2.

Forest Labs

(FRX)

: DOWN to accumulate from buy at Merrill Lynch. Forest Labs lost 3 7/8 to 103 1/8.

Horace Mann Educators

(HMN) - Get Report

: DOWN to market perform from buy at Donaldson Lufkin & Jenrette. Horace Mann Educators stumbled 2 15/16, or 18.9%, to 12 9/16.

Mentor

(MNTR)

: DOWN to hold from strong buy at

CIBC World Markets

after Mentor warned of lower-than-expected first quarter earnings. Mentor sliding 5 3/8, or 19.2%, to 22 5/8.

Neon Systems

(NESY)

: DOWN to market perform from buy at DLJ; price target, to 20 from 60. Neon Systems lost 2 1/16, or 12%, to 15 1/16.

Ross Stores

(ROST) - Get Report

: DOWN to buy from strong buy at Credit Suisse First Boston. Ross Stores was unchanged at 14 13/16.

Sealed Air

(SEE) - Get Report

: 2000 earnings estimate DOWN to $2 from $2.20 at

Banc of America Securities

. Sealed Air fell 1 1/16 to 48 13/16.

Tredegar

(TG) - Get Report

: DOWN to market outperformer from recommended-for-purchase list at

Goldman Sachs

. Tredegar declined 7/16 to 20.

Downgrades

Initiations

Great Atlantic & Pacific Tea

(GAP)

: NEW hold at

UBS Warburg

. It lost 1/8 to 16 7/16.

Navigant International

(FLYR)

was up 3/8 to 11 after it was started as a NEW buy at Lehman Brothers with a price target: $16.

Sonus Networks

(SONS)

: NEW buy at

Thomas Weisel

. It was up 2 3/4 to 141 3/4.

UTI Energy

(UTI) - Get Report

: NEW buy at

Donaldson Lufkin & Jenrette

, price target: 53.UTI edged up 1/8 to 38 1/4.

Group Moves

Deutsche Banc Alex. Brown downgraded several Internet companies:

  • FairMarket (FAIM) , down 29/32 to 5 1/4, was dropped to buy from strong buy; Safeguard Scientifics (SFE) - Get Report, off 2 7/16, or 7.5%, to 30 1/4, was dropped to buy from strong buy, and TMP Worldwide (TMPW) , down 2 3/8 to 73 9/16, to buy from strong buy. Deutsche Banc upped Hotjobs (HOTJ) to strong buy from buy. Hotjobs rose 3 1/8, or 24.4%, to 15 15/16.

Banc of America Securities

initiated coverage of several technology and semiconductor stocks:

  • Asyst Tech (ASYT) , up 3 1/4, or 10.4%, to 34 1/2; Applied Materials (AMAT) - Get Report, up 2 7/8 to 89 9/16; Brooks Automation (BRKS) - Get Report, up 3 5/8, or 7%, to 55 1/8; Credence (CMOS) , up 4 31/32 to 54 13/16; KLA-Tencor (KLAC) - Get Report, up 2 3/4, or 5.4%, to 53 3/4; LAM Research (LRCX) - Get Report, up 1 1/2, or 4.3%, to 36 5/8; Novellus Systems (NVLS) , up 3 5/16, or 6%, to 58 9/16; PRI Automation (PRIA) , up 4 1/4, or 6.6%, to 69 1/8; and Teradyne (TER) - Get Report, up 2 5/16 to 78, all were given buy ratings.

Jefferies & Co.

initiated coverage of several Internet commerce and content providers:

  • Internet Capital Group (ICGE) , down 1 3/4, or 5.3%, to 31 7/16, and Safeguard Scientifics were given accumulate ratings; Sportsline.com (SPLN) , down 1/4 to 16 1/4, Marketwatch.com (MKTW) , up 3 1/16, or 17.6%, to 20 7/16, Quokka Sports (QKKA) , down 19/32, or 6.2%, to 9, and TheStreet.com (TSCM) , down 1/2, or 7.8%, to 5 7/8, the publisher of this website, were given hold ratings.

ABN Amro

downgraded the following health care companies to hold from buy:

UBS Warburg

initiated coverage of six U.S. food retailers:

  • Albertson's (ABS) : NEW buy, down 1/16 to 34 1/2.
  • Delhaize (DZA) : INITIATED hold, down 3/16 to 17 7/16.
  • Kroger (KR) - Get Report: INITIATED buy, up 1/8 to 22 13/16.
  • Safeway (SWY) : NEW hold, up 1 7/16 to 49 3/8.
  • Whole Foods Market (WFMI) : INITIATED sell, up 1 7/8 to 46 13/16.
  • Winn-Dixie (WIN) - Get Report: INITIATED buy, down 1/16 to 14 9/16.

Bear Stearns

initiated coverage of the following companies:

  • AFLAC (AFL) - Get Report, up 2 3/16 to 47 9/16; American General (AGC) , up 3/4 to 63 3/4, and Annuity (ALRE) , down 9/16 to 24 1/2, as neutral;
  • Lincoln National (LNC) - Get Report, which was up 3, or 7.9%, to 41, as a buy;
  • Manulife Financial (MFC) - Get Report, up 1/4 to 17 11/16, as neutral;
  • Nationwide Financial (NFS) , up 1 7/16 to 34 13/16, as a buy;
  • Jefferson-Pilot (JP) - Get Report, up 1 7/16 to 59 3/16; MetLife (MET) - Get Report, unchanged at 21 7/8, and Protective Life (PL) , up 1/16 to 27 1/16, as attractive.

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Offerings and stock actions

Divine Interventures

(DVIN)

might need divine intervention to debut its IPO. It was delayed today for the second time in two weeks. The Internet incubator's pre-IPO publicity was controversial; the company develops business-to-business and infrastructure companies and cashes in when they go public. The first attempt to take the company public in late June was delayed to allow the underwriters to build more orders in a soft Internet incubator IPO market.

Lone Star Steakhouse

(STAR) - Get Report

said its board approved a 10% stock buyback. It rose 7/16 to 10 9/16.

America Online Latin America

, the Fort Lauderdale, Fla.-based unit of

America Online

(AOL)

, set its initial public offering at 25 million shares of Class A common stock in a projected range of $15 to $17 a share. Underwriters managing the IPO include Salomon Smith Barney, Donaldson Lufkin & Jenrette, Lehman Brothers and

Cazenove

. AOL ended the day 5/8 higher to 56 7/8.

Briggs & Stratton

(BGG) - Get Report

said it will buy back up to 2 million more shares of its own stock. The stock crept up 5/16 to 35 5/8.

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Miscellany

Boeing

(BA) - Get Report

said it expects to launch development of its proposed

747X

superjumbo airliner in six to nine months, and said it will spend about $4 billion on the project. The stock was up 3/4 to 43 3/4.

Biopharmaceutical company

Cytogen

(CYTO)

said it named Lawrence Hoffman chief financial officer and vice president. It edged up 1/16 to 11 3/16.

Members of the

International Union of Electronic Workers

voted to ratify a three-year contract with

General Electric

(GE) - Get Report

, the union said. GE lit up the board today, ending 1 1/8 higher to 51 5/16.

Lehman Brothers said in a research note it sees no major slowing in semiconductors, and expects "selected" semiconductor-equipment companies to have another record quarter for revenue and orders. The firm anticipates orders for the group to increase 113% over last year. Also, the firm said it completed a semiconductor capital budget survey that estimates a 76% increase in capital spending at major chipmakers, giving the firm confidence in the outlook for the rest of 2000 and into 2001.

Standard & Poor's

announced two changes to its closely watched

S&P 500. The company said

Stilwell Financial

(SV)

will replace

Kansas City Southern

(KSU) - Get Report

, down 1/8 to 89 13/16, after the close of trading next Wednesday. Kansas City Southern is spinning off Stilwell Financial to its shareholders.

S&P also said

CIT Group

(CIT) - Get Report

, off 1/16 to 19, will replace

Union Pacific Resources

(UPR)

in the index July 14. Union Pacific, ending the day up 1 to 21, is being acquired by

Anadarko Petroleum

(APC) - Get Report

, which was up 1 11/16 to 46 11/16. Inclusion in the index often boosts the price of a stock as portfolio managers add it to their holdings, a

phenomenon

TheStreet.com

has examined in recent

stories.

Inflows returned to equity funds in the latest week, according to

AMG Data Services

, which said inflows totaled $4.9 billion in the four-day week ended yesterday. Sixty-four percent of that went to growth funds.

Large-cap equity-index funds reported outflows, while international- and global-equity funds received 25% of total equity inflows, which were $1.2 billion.

Taxable bond funds reported inflows of $843 million, with most going to investment-rade and high-yield corporate bond funds. Meanwhile, Treasury funds reported outflows for the third consecutive week. Come on, Treasury funds. You can do it.

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By the Numbers

The data on NYSE and Nasdaq percent winners and losers are filtered to exclude stocks whose previous day's volume was less than 25,000 shares; whose last price was less than 5; and whose net change was less than 1/2.

Dow point gain and loss data are based on New York closing prices and do not reflect late composite trading.

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