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.


(CSCO) - Get Report

, which announced this week stronger-than-expected profits for its third quarter, said it would buy

Qeyton Systems

, 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

ArrowPoint Communications


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's

joint newsroom.

Mergers, acquisitions and joint ventures


(IR) - Get Report

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

Terra Networks


confirmed it is negotiating a possible deal with



. According to

Newspaper Expansion

, 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.



(DELL) - Get Report

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

Robertson Stephens

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.

Intimate Brands


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


(AES) - Get Report

advanced 2 7/16 to 76 13/16 after it priced a 10.75 million share offering at $74 a share.


(ECL) - Get Report

slipped 7/16 to 40 1/4 after it said it plans to buy back $200 million shares in fiscal 2000.

Cox Radio


lifted 2 15/16 to 83 9/16 after it set a 3-for-1 stock split.


(MMS) - Get Report

fell 1/16 to 22 7/16 after it set a $30 million stock buyback.

Standard & Poor's

said that



would take over

Central & South West's


spot in the

S&P 500

. Central & South West is being acquired by S&P 500 component

American Electric Power

(AEP) - Get Report

. MedImmune jumped 12 3/4, or 8.2%, to 167 7/16.

TriQuint Semiconductor


climbed 8 11/16, or 9.6%, to 99 1/8 after it set a 2-for-1 stock split.

Analyst actions


Brocade Communications


: ADDED to purchase list at Goldman Sachs. Brocade Communications mounted 9 13/16, or 9.6%, to 111 11/16.


(GPS) - Get Report

: UP to buy from hold at

Credit Suisse First Boston

. Gap tacked on 15/16 to 36 1/4.


(NDSN) - Get Report

: UP to buy from hold at

ABN Amro

. Nordson moved up 2 15/16, or 5.3%, to 45 7/16.


(SUNW) - Get Report

: UP to outperform from market perform at

Sanford Bernstein

. Sun Microsystems advanced 6 1/16, or 7.8%, to 82 7/8.


(UFI) - Get Report

: UP to buy from hold at CSFB. Unifi edged up 3/8 to 13 7/8.

Waste Management


: UP to attractive from neutral at


. Waste Management lost 3/8 to 18 1/2.


Chase Manhattan


climbed 2 5/16 to 72 5/16 : DOWN to market perform from buy at

J.P. Morgan


Golden State Vintners


slipped 3/16 to 4 5/16: DOWN to market perform from buy at J.P. Morgan.


Accrue Software


added 1 1/2, or 7.8%, to 20 5/8: NEW to strong buy at

S.G. Cowen




climbed 5 5/8, or 13%, to 49: NEW buy at

CIBC World Markets


Cell Therapeutics

(CTIC) - Get Report

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.

24/7 Media


rose 1 11/16 to 19 5/16 : NEW strong buy at

ING Barings

, price target of 60.

Group Moves

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.



(XRX) - Get Report

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.


reported that


(F) - Get Report

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

Land Rover

line to Ford soon, possibly in the next couple days. Ford has agreed to pay about $2.70 billion for the line.