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 buying the shares. Agilent added 5 7/8, or 7.6%, to 82 7/16.
, 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.
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. Cisco Systems gained 2 1/4 to 62 1/2, ArrowPoint climbed 4 1/4 to 129 15/16.
For more on Cisco, take a look at the
recent story from
Mergers, acquisitions and joint ventures
added 5/8 to 46 5/16 after it 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.
Spain-based Web company
confirmed it is negotiating a possible deal with
. According to
, the pact could end in a complete merger. Terra Networks popped 3 3/4, or 6.6%, to 60 1/2 and Lycos bounced 5, or 9.2%, to 59.
Earnings/revenue reports and previews
Earnings estimates from First Call/Thomson Financial; earnings reported on a diluted basis unless otherwise specified.
climbed 5 1/4, or 11.8%, to 50 after it posted
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.
joint newsroom covered the Dell release in a separate
story, and see
The Night Watch for a look at Dell's postclose trading activity.
declined 3/8 to 46 1/8 after it 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.
Offerings and stock actions
advanced 2 7/16 to 76 13/16 after it priced a 10.75 million share offering at $74 a share.
slipped 7/16 to 40 1/4 after it said it plans to buy back $200 million shares in fiscal 2000.
lifted 2 15/16 to 83 9/16 after it set a 3-for-1 stock split.
fell 1/16 to 22 7/16 after it set a $30 million stock buyback.
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 12 3/4, or 8.2%, to 167 7/16.
climbed 8 11/16, or 9.6%, to 99 1/8 after it set a 2-for-1 stock split.
: ADDED to purchase list at Goldman Sachs. Brocade Communications mounted 9 13/16, or 9.6%, to 111 11/16.
: UP to buy from hold at
Credit Suisse First Boston
. Gap tacked on 15/16 to 36 1/4.
: UP to buy from hold at
. Nordson moved up 2 15/16, or 5.3%, to 45 7/16.
: UP to outperform from market perform at
. Sun Microsystems advanced 6 1/16, or 7.8%, to 82 7/8.
: UP to buy from hold at CSFB. Unifi edged up 3/8 to 13 7/8.
: UP to attractive from neutral at
. Waste Management lost 3/8 to 18 1/2.
climbed 2 5/16 to 72 5/16 : DOWN to market perform from buy at
Golden State Vintners
slipped 3/16 to 4 5/16: DOWN to market perform from buy at J.P. Morgan.
added 1 1/2, or 7.8%, to 20 5/8: NEW to strong buy at
climbed 5 5/8, or 13%, to 49: NEW buy at
CIBC World Markets
gained 2 5/8, or 17.5%, to 17 5/8: NEW strong buy at CSFB.
rose 3/8 to 13: NEW buy at CSFB.
tacked on 5 5/8, or 9.5%, to 64 5/8 : NEW strong buy at SG Cowen.
rose 1 11/16 to 19 5/16 : NEW strong buy at
, price target of 60.
UBS Warburg Dillon Read
initiated coverage of beverage companies:
- Anheuser-Busch (BUD) - Get Report dropped 2 1/4 to 76 11/16: strong buy, price target: 95.
Coca-Cola Enterprises (CCE) inched up 5/16 to 21 7/8: hold, price target: 23.
Pepsico (PEP) - Get Reportlost 1 1/16 to 38 15/16: buy, price target: 46.
Pepsi Bottling Group (PBG) edged up 9/16 to 23 3/4: strong buy, price target: 30.
Warburg Dillon Read initiated coverage of two communications companies:
- Seagram (VO) - Get Report at buy. Shares slipped 11/16 to 51 5/16.
USA Networks (USAI) - Get Report at strong buy. Shares moved up 3/4 to 23 1/8.
ING Barings initiated coverage of two bank stocks:
- Bank One (ONE) - Get Report at hold. Shares gained 7/16 to 30 1/2.
US Bancorp (USB) - Get Report at buy, price target: 28. USB rose 1 3/8, or 6%, to 24 1/8.
rose 1 13/16, or 7.1%, to 27 5/16 after it 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.
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 was lately up 3/4 to 53 11/16.
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 days. Ford has agreed to pay about $2.70 billion for the line.