Updated from 2:18 p.m.

Intel

(INTC) - Get Report

announced post-close yesterday that it was cutting its third-quarter revenue estimates, citing weak European demand. Several analysts downgraded the company this morning and cut earnings estimates.

The chip-maker now expects third-quarter revenue to rise 3% to 5% from the second quarter's $8.3 billion. The Santa Clara, Calif., company said its third-quarter gross margin would fall to 62%, missing estimates of 63% to 64%. (

TSC

covered Intel's warning in a separate

story.)

Intel ended its day of madness down $13.55, or 22%, to $47.94.

Citing low cosmetic surgery product sales,

Arthrocare

(ARTC)

said it expects third-quarter EPS to fall below analyst estimates. The company, which produces medical equipment and supplies, sees third-quarter EPS between 12 cents to 14 cents. A

First Call/Thomson Financial

survey of seven analysts produced an EPS of 19 cents a share.

The company also expects third-quarter sales of $17 million to $18 million. Arthrocare's stock closed down $8.38, or 27.1%, to $22.50.

Online advertiser

ValueClick

(VCLK)

ended flat at $8.56 after saying it won't meet third-quarter revenue estimates, citing a slowdown in online advertising spending.

Revenue for the third quarter will be between $9.5 million and $10 million, the Westlake Village, Calif.-based company said. Analysts had predicted that revenue to exceed $12 million. (

TheStreet.com/NYTimes.com

covered ValueClick's warning in a separate

story.)

Mergers, acquisitions and joint ventures

Answerthink

(ANSR)

and

i2 Technologies

(ITWO)

announced an alliance to form a Web business-to-business exchange that would create technology to help businesses cut costs in delivering goods and services. Answerthink, an Internet consulting company, will create the exchange using i2 Technologies. No financial details of the deal were available. Answerthink ended up 50 cents, or 3.2%, to $16.

Mack-Cali Realty Corp.

(CLI) - Get Report

canceled its $976 million agreement to acquire Prentiss Properties Trust

(PP)

and expanded its stock buyback to $150 million from the previously announced $100 million.

Analysts and investors questioned the value of national expansion beyond the Northeast for Mack-Cali. The possibility of the deal's cutting about 10 cents a share from Mack-Cali's 2000 and 2001 earnings also troubled them. Mack-Cali closed up, though, $1.38, or 5.1%, to $28.56. Prentiss also closed up, higher by 94 cents, or 3.7%, to $26.13.

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Earnings/revenue reports and previews

Compaq Computer

(CPQ)

announced that worldwide momentum is "clearly continuing" and that European demand is tracking within expectations. Compaq ended the day's trading up $1.88, or 6.7%, to $29.75.

After Thursday's Close

AutoZone

(AZO) - Get Report

, an automotive parts seller, posted fourth-quarter profits of 84 cents a share, besting the 11-analyst estimate by a penny and the year-ago 64 cent result. AutoZone closed today up by 6 cents, or 0.6%, to $21.88.

Internet incubator

CMGI

(CMGI)

reported fourth-quarter losses of $2.17, better than the eight-analyst prediction of a $2.45 loss, but below the year-ago $1.53 loss. (

TSC

took a look at CMGI's earnings in a separate

article.) Additionally, CMGI said that it would take AltaVista public by Oct. 31. CMGI closed down 38 cents, or 1%, to $36.06.

Dell

(DELL) - Get Report

Chairman Kevin Rollins said the company is "still on track" to boost revenue 30% this year. Seems the market felt differently, though, as the company closed down $2, or 5.3%, to $35.94.

Internet-business services provider

Manugistics

(MANU) - Get Report

reported second-quarter earnings of 3 cents a share, beating the nine-analyst break-even prediction and the year-ago 13 cent loss. The company closed up a whopping $21.13, or 24.3%, to $108.

Manugistics also announced that it has signed an agreement to buy the privately held

Talus Solutions

for about $366 million in stock.

Advertising and direct-mail company

Valassis Communications

(VCI)

reported that third-quarter and full-year earnings would come in below Wall Street estimates, due in part to pricing pressures. The company expects to post third-quarter earnings of between 46 cents and 48 cents, below the eight-analyst estimate of 49 cents. Valassis closed down $3.38, or 13%, to $22.50.

Footwear manufacturer

Vans

(VANS)

ended the day down 19 cents, or 1.1%, to $16.19 after posting first-quarter earnings of 52 cents, topping the eight-analyst forecast of 30 cents and last year's 42 cent result.

Walker Interactive Systems

(WALK)

, a manufacturer of applications software, announced that it will restructure the company and take a third-quarter charge of $1.5 million to $2.5 million. The company closed down 13 cents, or 3.3%, to $3.63.

Zomax

(ZOMX)

, which provides outsource services to software publishers and computer manufacturers, reported that third-quarter earnings will be below expectations, citing market softness -- particularly in Europe. Zomax will report a 15 cent to 17 cent result, compared to the 28 cent analyst expectation. The company closed down $9.06, or 52.2%, to $8.31.

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Analyst actions

This is like initiating coverage on

Custer

with a sell rating after

Little Big Horn

, but for what it's worth, analysts have been downgrading, cutting estimates and sounding pretty negative on Intel this morning, after the chip-maker issued an earnings warning yesterday, saying that revenue would fall short of expectations.

A multitude of analysts took action on Intel this morning, after some freely admitted being

wrong in supporting the company yesterday.

Merrill Lynch

cut earnings estimates and suggested that other factors besides Europe could be at work, including inventory and demand issues. Merrill,

Lehman Brothers

,

Credit Suisse First Boston

and

PaineWebber

have notably not changed their ratings -- just lowered estimates.

Deutsche Banc Alex. Brown

downgraded the company to market underperform from strong buy, as did

Chase Hambrecht & Quist

.

J.P. Morgan

and

Wit Soundview

also lowered estimates.

Salomon Smith Barney

also downgraded Intel to outperform from strong buy, and

Prudential Securities

downgraded Intel to accumulate from strong buy.

Contrary to the dismal outlook by provided by Intel, Chase H&Q affirmed the health of the personal-computer industry, saying it sees 15% to 17% year-over-year unit growth.

Analyst Walter Winnitzki said Chase's "strongest picks" are

Compaq Computer

(CPQ)

, rated strong buy,

Dell Computer

(DELL) - Get Report

and

Gateway

(GTW)

, both rated buy.

Intel closed today, as noted above, down $13.55, or 22%, to $47.94. Compaq finished up $1.75, or 6.3%, to $29.63; Dell was down $2, or 5.3%, to $35.94; and Gateway ended up $4.50, or 8.8%, to $55.50.

Analysts also took action on other technology companies:

Alex. Brown and Chase H&Q lowered their ratings on competitor

Advanced Micro Devices

(AMD) - Get Report

, both to market perform from buy. AMD closed up despite the downgrades, though, higher by $1.56, or 6.5%, to $25.50.

SG Cowen

cut its rating on

Applied Materials

(AMAT) - Get Report

-- which closed down #3.50, or 4.8% to $70 -- and

Brooks

(BRKS) - Get Report

-- which closed down $4.94, or 11.5%, to $38 -- to buy from strong buy.

SG Cowen also lowered ratings on

Credence Systems

(CMOS)

,

Nova

(NVMI) - Get Report

,

Photronics

(PLAB) - Get Report

, and

PRI Automation

(PRIA)

. Credence closed down $3.19, or 8.2%, to $35.88; Nova ended down 50 cents, or 4.4%, to $11; Photronics was down 69 cents, or 2.8%, to $24.25; and PRI closed down $1.44, or 6%, to $22.38.

Merrill Lynch has defended other technology companies with European exposure, including

Cisco

(CSCO) - Get Report

and

Nortel

(NT)

, but it did warn of worries for tech giant

Microsoft

(MSFT) - Get Report

, saying Europe could affect that company as well.

Cisco closed down 81 cents, or 1.3%, to $60.31; Nortel ended the day up $5.63, or 9.2%, to $66.63; and Microsoft closed down 94 cents, or 1.5%, to $63.25.

Upgrades

Anheuser-Busch

(BUD) - Get Report

: price target UP to $52 from $47.50 at

UBS Warburg

The company closed up $1.31, or 3.1%, to $44.31.

Axa

(AXA)

: UP to buy from accumulate at Merrill Lynch. Axa closed up $4.44, or 6.95%, to $68.31.

Boeing

(BA) - Get Report

: price target UP to $72 on higher cash flow and earnings per share view at Merrill Lynch. The airplane-maker ended the trading day up $3.50, or 5.8%, to $63.50.

Choice Hotels

(CHH) - Get Report

: UP to buy from outperform at Salomon. The stock closed up 63 cents, or 7%, to $9.50.

Downgrades

Georgia-Pacific

(GP)

: third-quarter EPS DOWN to 83 cents from 88 cents at Alex. Brown. The company finished down 44 cents, or 1.8%, to $23.50

Lernout & Hauspie

(LHSP)

: DOWN to underperform from neutral at Lehman. L&H closed down by $1.50, or 9.9%, to $13.63.

Micron Technology

(MU) - Get Report

: DOWN to outperform from buy at Salomon. Micron ended today down $3.13, or 5.7%, to $52.

Morgan Stanley Dean Witter

(MWD)

: Fiscal 2001 EPS DOWN to $6.00 from $5.55; fourth-quarter EPS DOWN $1.55 from $1.75 at Salomon. The stock finished up $1.25, to 1.4%, to $90.56.

Temple-Inland

(TIN)

: third-quarter EPS DOWN to $1.02 from $1.05 at Alex. Brown. Temple ended flat at $39.06.

Valassis Communications

(VCI)

: DOWN to neutral from buy at Merrill, and down to buy from strong buy at CSFB. As noted above, the stock closed down $3.38, or 13%, to $22.50.

Initiations

Amerada Hess

(AHC) - Get Report

: NEW hold at UBS Warburg; price target of $70. Amerada Hess finished down $1.31, or 1.96%, to $65.63.

Genaissance Pharmaceuticals

(GNSC)

: NEW strong buy at UBS Warburg; price target: $30. The stock ended today up 38 cents, or 1.9%, to $19.88.

Johnson & Johnson

(JNJ) - Get Report

: NEW neutral at Lehman. The Dow component ended the day up $1.63, or 1.7%, to $95.88.

Knight Trading

(NITE)

: NEW buy at

W. R. Hambrecht

. The stock closed down $1.50, or 3.9%, to $37.25.

TiVo

(TIVO) - Get Report

: NEW buy at CSFB. TiVo finished up 19 cents, or 1%, to $18.31.

Group Moves

Alex. Brown sliced its rating on three radio stocks:

  • Entercom Communications (ETM) - Get Report: DOWN to buy from strong buy. Entercom closed down $2.50, or 7.3%, to $31.75.
  • Citadel Communications (CITC) : DOWN to market perform from buy. Citadel ended today down 19 cents, or 1.1%, to $16.31.
  • Emmis Communications (EMMS) - Get Report: DOWN to market perform from buy. The stock finished down $2.25, or 7.96%, to $26.

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Offerings and stock actions

Teva Pharmaceutical Industries

(TEVA) - Get Report

ended the day up $4.44, or 6.6%, to $71.75, after saying it will offer about $300 million of five-year convertible senior debentures in a private placement.

The company plans to use the funds to refinance debt, to fund its North American and European subsidiaries, to have on hand working capital and to use for "other corporate purposes."

After Thursday's Close

Bisys Group

(BSYS)

, which provides financial customers with information-processing and check-imaging services, announced a 2-for-1 stock split. The stock ended today up $1.75, or 2.2%, to $80.

Network-equipment provider

Tektronix

(TEK)

announced a 2-for-1 stock split. The company closed up 63 cents, or 0.9%, to $73.63.

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Miscellany

Noble Affiliates

(NBL) - Get Report

said Charles Davidson has been appointed president and CEO, effective Oct 2.

Davidson was president and CEO of

Vastar Resources (VRI)

until its recent merger with

BP Amoco

(BP) - Get Report

. Noble ended the day up 25 cents, or 0.7%, to $36.81.

After Thursday's Close

Communications-product maker

Xircom

(XIRC)

closed the day down $2.06, or 7.6%, to $25.06 after announcing that it has filed suit against

3Com

(COMS)

. Xircom says 3Com's Type-III PC-cards infringe on its patents for its RealPort PC Cards.

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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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