Updated from 2:45 p.m.

Computer giant

Dell

(DELL) - Get Dell Technologies Inc Class C Report

warned this morning that it would miss fourth-quarter estimates, citing the deterioration of the global economy as well as slowing demand in products.

The PC-maker said its fourth-quarter earnings will come in between 18 cents and 19 cents, missing the

First Call/Thomson Financial

23-analyst estimate of 25 cents. It also said the quarter's revenue would be $8.5 million to $8.6 billion, which is up 25% to 27%. The First Call 11-analyst estimate projected revenue of $8.5 billion.

A note from Dell this morning highlighted that quarterly shipments would likely rise 40% from a year ago.

In the past two months,

TheStreet.com

has followed the company's

woes. Dell closed today down 13 cents, or 0.5%, to $25.50.

A federal judge ruled Friday that

Transkaryotic Therapies

(TKTX)

infringed on

Amgen's

(AMGN) - Get Amgen Inc. Report

patents for Epogen, the company's anemia-fighting drug.

The judge found that Amgen's patent "is valid, enforceable and literally infringed" in his ruling issued today. Transkaryotic had developed the drug using an alternative method from the one used by Amgen, a biopharmaceutical company based in Thousand Oaks, Calif. Transkaryotic closed down $10.88, or 31.99%, to $23.13; Amgen was up $7.63, or 12.7%, to $67.63.

Mergers, acquisitions and joint ventures

Compaq

(CPQ)

and

Yahoo!

(YHOO)

entered into a multiyear agreement in which Compaq will be a preferred provider of technology to Yahoo! and will advertise its computers on the Internet giant's sites. Compaq closed down 68 cents, or 3.3%, to $19.82; Yahoo! was up 88 cents, or 2.6%, to $34.69.

After Friday's Close

Supervalu

(SVU)

quit the bidding process for

Kmart's

(KM)

grocery distribution business, saying the agreement under consideration would require it to reduce margins to unacceptable levels.

Earlier this week, Kmart announced it would consolidate its grocery distribution contracts with Supervalu and

Fleming

(FLM) - Get First Trust Global Engineering and Construction ETF Report

and use a single food distributor for its more than 2,100 Big Kmart and Super Kmart stores nationwide. Both food distributors planned to bid on the contract.

Supervalu had made a "minimal" capital investment for its current regional pact with Kmart, which generates about $2.3 billion in annual revenue. Supervalu plans to provide additional information about the financial impact of its decision within the next several days. Supervalu closed up 50 cents, or 3.6%, to $14.50; Kmart was up 13 cents, or 1.6%, to $8; Fleming was up 50 cents, or 3.6%, to $14.44.

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Earnings/revenue reports and previews

American Express

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posted fourth-quarter earnings of 50 cents a share, in line with the 17-analyst estimate and up from year-ago earnings of 44 cents a share. AmEx was down $3.63, or 7.5%, to $45.

BellSouth

(BLS)

posted fourth-quarter earnings of 59 cents per share, in line with the

First Call/Thomson Financial

19-analyst estimate and up from year-ago earnings of 55 cents a share.

The Atlanta-based Baby Bell said its fourth-quarter profits rose amid strong sales of data and wireless telephone services. Profits were $1.1 billion, compared with $1.05 billion, or 55 cents a share, in the same period one year ago. The company also said its revenue rose 9.8% to $7.4 billion. BellSouth was down $1.63, or 3.8%, to $41.38.

After Friday's Close

Creative Technology

(CREAF)

posted second-quarter earnings of 33 cents a share, beating the already lowered single-analyst estimate of 23 cents and up from year-ago earnings of 52 cents, including investment gains of $9.2 million, or 11 cents. The latest quarter's figure includes investment gains of $507,000. According to First Call/Thomson Financial, the analyst's previous estimate was 43 cents a share.

The company said its second-quarter sales of $427 million were slightly above its revised expectation of $410 million to $420 million reported in December. The company had lowered its second-quarter sales forecast due to a significant shortfall in demand and revenue from system integration and OEM channels, which in turn hurt audio revenue and gross margins. Creative Tech ended the day up 94 cents, or 7.5%, to $13.50.

Lyondell Chemicals

(LYO)

, the world's largest producer of propylene oxide, warned that it will report a wider-than-expected loss, citing higher natural gas prices combined with a slowing economy.

The company now expects a loss of 40 cents a share for the fourth quarter. The First Call 11-analyst estimate was for a loss of 23 cents. Lyondell closed down 88 cents, or 5.8%, to $14.25.

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Analyst actions

Hindsight's 20/20, right? Well, before

Dell

(DELL) - Get Dell Technologies Inc Class C Report

issued its earnings warning this morning,

Robertson Stephens

upgraded the PC maker to long-term attractive from market performer. As noted above, Dell closed down 13 cents, or 0.5%, to $25.50.

Retailers were up across the board in morning trading after

Goldman Sachs

upgraded ratings on a number of companies in the industry.

The firm added

Gap

(GPS) - Get Gap, Inc. (GPS) Report

,

Guitar Center

(GTRC)

,

Federated Department Stores

undefined

and

Target

(TGT) - Get Target Corporation Report

to its U.S. recommended for purchase list, upgrading the companies from market outperformer ratings.

Sears

(S) - Get SENTINELONE, INC. Report

was also added to the list and upgraded from market performer.

Goldman Sachs upgraded

Jones Apparel

(JNY)

,

Phillips-Van Heusen

(PVH) - Get PVH Corp. Report

,

TJX

(TJX) - Get TJX Companies Inc Report

,

TheStreet Recommends

Tommy Hilfiger

(TOM)

and

Nautica Enterprises

(NAUT)

to market outperformer ratings, from market performers.

Gap closed up $3.25, or 12.5%, to $29.25; Guitar Center was up $1, or 7.3%, to $14.75; Federated was up $2.50, to 6.6%, to $40.50; Target ended the day up $1.81, or 5.5%, to $34.56; Sears was up $2.92, or 8.7%, to $36.60.

Jones Apparel closed up $1.50, or 4.1%, to $38; Phillips-VanHeusen was up 44 cents, or 3.7%, to $12.25; TJX was up $1.31, or 4.8%, to $28.81; Tommy Hilfiger ended the day up $2, or 17.4%, to $13.50; and Nautica was up 94 cents, or 5.8%, to $17.

Upgrades

Aflac

(AFL) - Get Aflac Incorporated Report

: UP to strong buy from buy at

Banc of America

; 12-month price target: $79. It was also raised to strong buy from market perform at

Lehman Brothers

. Aflac closed up $3.06, or 5.4%, to $59.75.

Amgen

(AMGN) - Get Amgen Inc. Report

: price target UP to $92 from $76 at Banc of America; and UP to strong buy from outperform at

Morgan Stanley Dean Witter

. As noted above, Amgen closed up $7.63, or 12.7%, to $67.63

Northern Trust

(NTRS) - Get Northern Trust Corporation Report

: UP to accumulate from neutral at

Merrill Lynch

. Northern Trust closed up $4.63, or 7.2%, to $69.19.

Duke Energy

(DUK) - Get Duke Energy Corporation (DUK) Report

: UP to buy from outperform at

Salomon Smith Barney

. Duke closed up $1.19, or 1.6%, to $74.

Downgrades

ADC Telecommunications

(ADCT) - Get ADC Therapeutics SA Report

: DOWN to long-term attractive from buy at Robbie Stephens. ADC closed down $1.31, or 8.4%, to $14.25.

Ball

(BLL) - Get Ball Corporation Report

: DOWN to buy from strong buy at Lehman. Ball closed down 69 cents, or 1.6%, to $42.44.

GPU

(GPU)

: DOWN to hold from add at

ABN Amro

. GPU closed down $3.94, or 11.6%, to $30.13.

Scientific Atlanta

(SFA)

: DOWN to outperform from strong buy at Morgan Stanley. Scientific Atlanta closed down $1.94, or 3.4%, to $55.56.

Textron

(TXT) - Get Textron Inc. Report

: DOWN to buy from strong buy at Banc of America; 2001 EPS DOWN to $4.85 from $5.30; 2002 EPS DOWN to $5.60 from $6; and 12-month price target DOWN to $60 from $70. Textron ended the day down $2.69, or 5.5%, to $45.94.

Transkaryotic Therapies

(TXTX)

: DOWN to neutral from outperform at Morgan Stanley. As noted above, Transkaryotic closed down $10.88, or 31.99%, to $23.13

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Offerings and stock actions

Arthur J. Gallagher

(AJG) - Get Arthur J. Gallagher & Co. Report

raised its quarterly payout 13%, to 13 cents from 11.5 cents. Arthur J. Gallagher closed up 69 cents, or 3.1%, to $22.69.

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Miscellany

Crane

(CR) - Get Crane Co. Report

said CEO Robert Evans will retire April 23. The stock closed down 31 cents, or 1.2%, to $26.31.

Gilead Sciences

(GILD) - Get Gilead Sciences, Inc. (GILD) Report

appointed James Denny as chairman, replacing Donald Rumsfeld. Rumsfeld resigned to serve as secretary of defense. Gilead closed up $2.25, or 3.8%, to $61.81.

Gillette

(G) - Get Genpact Limited Report

named James Kilts its chief executive and chairman. Kilts is the former head of

Nabisco Holdings

. Edward DeGraan, a 32-year veteran of Gillette, has been the company's acting CEO since Michael Hawley was ousted in October after only 18 months. Gillette closed up 56 cents, or 1.7%, to $34.25; Nabisco was

After Friday's Close

Computer Sciences

(CSC)

is eliminating 237 jobs as a result of the company's

recent acquisition of

Mynd

, a computer software concern.

Most of the cuts, 201 positions, will come from the Computer Sciences facility in Blythewood, S.C., the former Mynd headquarters. The layoff will immediately affect 138 employees, with another 63 positions to be phased out in the next 30 to 90 days.

Another 36 jobs were slashed in the company's Austin, Texas, facility. Of those, 32 layoffs were effective immediately, with four to be phased out within 30 to 90 days. According to data from

Market Guide

, Computer Sciences has about 58,000 employees.

The job cuts covered administrative and other support functions that became redundant when Computer Sciences acquired Mynd, said Mike Dickerson, a company spokesman. "This was not unexpected," he said. "CSC indicated when we first announced our intention to acquire Mynd that some job reductions would be necessary, and we've maintained that all along." Computer Sciences closed down 63 cents, or 1%, to $59.56.

drugstore.com

(DSCM)

eliminated 20% of its workforce and said its financial chief, David Rostov, is resigning.

Bob Barton, the company's current vice president and general manager of pharmacy operations, will replace Rostov as chief financial officer and vice president of finance. The company said Rostov will resign in a few weeks to "pursue other opportunities."

Barton, who has been with the company since its inception in 1998, has served in various senior financial management roles with the company. Prior to drugstore.com, Barton was the director of business planning for

AT&T Wireless

(AWE)

.

Also today, drugstore.com said it had terminated 125 employees, the company's second major downsizing in the past four months. The company said the move is part of an initiative to reduce projected 2001 operating expenses by more than $20 million. In October, the online drugstore company said it

had eliminated 60 employees, or about 10% of its workforce, as part of a cost-cutting measure. drugstore.com closed down 44 cents, or 16.7%, to $2.19; AT&T wireless was up 69 cents, or 2.9%, to $24.63.

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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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