Updated from 2:48 p.m. EDT

America Online


and Japan's


are planning to jointly develop and sell mobile Internet services in Japan and elsewhere,


has reported.

DoCoMo will invest $120 million in

AOL Japan

, a 43% stake, according to the published report. AOL, which would invest an additional $100 million, would see its share of its Japanese operation shrink to 39.3% from the current 50%.

AOL would integrate its Japan service with i-mode, DoCoMo's existing mobile Internet service. That would allow i-mode's 12 million subscribers to access AOL content from their mobile phones. DoCoMo would sell AOL's service through its network of retail shops.

A deal could be announced this week, according to



In related news,



will join AOL's portfolio of network providers. The telecommunications company has agreed to provide dial-up access services for AOL in the U.K.

Viatel owns and operates a 20-city fiber-optic network in the U.K. The company hopes to extend its services to AOL under the agreement. AOL ended the day up 32 cents, or 0.6%, to $55.57, and Viatel closed down $1.31, or 9.95%, to $11.88.

Cell Pathways


shares fell after the drug company announced that the FDA had rejected its new drug application for Aptosyn, which treats cancer lesions.

Cell Pathways closed down $20.69, or 68.96%, to $9.31, from Friday's closing price of $30.

Mergers, acquisitions and joint ventures

Home improvement giant

Home Depot

(HD) - Get Home Depot, Inc. (HD) Report

declined to comment on speculation that it might bid for all or part of British retailer


. Home Depot has shown interest recently in getting into the European market.

Earlier today,

Chase Hambrecht & Quist

cut the stock's 12-month price target to $65 from $70. Home Depot's stock ended the day down $1.44, or 2.6%, to $54.50.



closed down $1.75, or 4.7%, to $35.75, after saying it would pay $120 million in cash and stock to acquire online-marketing research company



DoubleClick, an Internet advertising service company, said @plan stockholders will receive $9.25 for each share -- based on @plan's Friday closing price of $7.25 a share -- representing a 28% premium. Shareholders will receive 20% of the consideration in cash and the remainder in DoubleClick common stock.

OK, so you missed out on Britney Spears, the undefeated New York Jets and the March



IPO. Don't worry. There are other bandwagons to hop on. Today,



, a developer of Internet marketplaces, hopped into the now-hot energy industry, announcing the creation of


. The new company is an electronic-trading venture dealing in energy concerns such as natural gas, electricity, coal and weather derivatives.

eSpeed is getting help from energy companies.

Dominion Resources

(D) - Get Dominion Energy Inc Report



(WMB) - Get Williams Companies, Inc. Report




are partners, along with privately held

Koch Energy Trading


Coral Energy


Cantor Fitzgerald

. TradeSpark will be up and running Oct. 2. eSpeed closed down 75 cents, or 2.7%, to $27.38.

White Mountains Insurance Group

(WTM) - Get White Mountains Insurance Group Ltd Report

agreed to pay $2.1 billion for the U.S. property casualty operations of British insurer

CGNU Group


White Mountains will also repay almost $500 million of the unit's debt. As part of the deal's financing,

Warren Buffett

, chief executive of

Berkshire Hathaway

, will invest up to $300 million in convertible shares of White Mountains. White Mountains ended the day up $37.50, or 21.5%, to $212.

Back to top

Earnings/revenue reports and previews

Armstrong Holdings


closed down 19 cents, or 1.5%, to $12.63, after saying it would record an after-tax charge of up to $31 million in the third quarter, due primarily to the elimination of about 300 production, administrative and sales jobs in its European operations.

The company plans to consolidate its European sales, discontinue its unprofitable product lines and vacate excess office space in Lancaster. The floor- and ceilings-product maker also hired a new CEO, Michael Lockhart, in August.

Teco Energy


raised its earnings outlook for 2000 and 2001, saying it expects 10% growth for each year from its core businesses, with about a 10 cents to 15 cents a share growth in 2000.

The Florida-based company also said it sees third-quarter EPS growth of about 15%. A

First Call/Thomson Financial

survey of six analysts produced a third-quarter EPS estimate of 59 cents a share. Teco closed up 63 cents, or 2.4%, to $26.69.

Triton Energy

(OIL) - Get iPath Series B S&P GSCI Crude Oil ETN Report

closed down $4.63, or 11.4%, to $36.06, despite its announcement that it expects to meet analysts' estimates for its third-quarter earnings. The 12-analyst estimate by First Call/Thomson Financial is for 55 cents a share.

XO Communications


, formerly known as Nextlink Communications, said it will meet or exceed third-quarter estimates. The current 14-analyst estimate for the company's third quarter is for a loss of $1.04. The stock closed up $5.13, or 18.4%, to $33.

After Friday's Close

Chemical manufacturer

Georgia Gulf


announced that it expects its third-quarter earnings to be sharply lower than expected, in part because of slowdown in the construction industry. Georgia Gulf expects to come in between 20 cents and 25 cents a share, below the seven-analyst 45 cent estimate. Georgia Gulf ended today up 19 cents, or 1.7%, to $11.38.

Forestry products manufacturer


(RYN) - Get Rayonier Inc. Report

warned that its third-quarter earnings would fall below estimates, citing price pressures, reduced demand and currency troubles. Rayonier expects to come in 5 cents to 7 cents below the six-analyst 49 cent forecast.

Goldman Sachs

cut the company's 2000 earnings outlook to $2.35 a share from $2.50 and its 2001 earnings outlook to $2.85 from $3.20 a share. Rayonier closed down $1.69, or 4.5%, to $36.25.

Supply chain-management services firm



expects to report lower than expected third-quarter earnings due to the economic slowdown and costs associated with company growth. The company forecasts earnings of 90 cents to 95 cents a share, compared to the nine-analyst $1.11 estimate. USFreightways closed down $4.20, or 15.2%, to $23.42.

Back to top

Analyst actions

Bear Stearns

cut its rating on

Amerada Hess

(AHC) - Get A.H. Belo Corporation Class A Report

to neutral from buy, saying President Clinton's decision to release 30 million barrels of oil from reserve strengthened the firm's conviction that oil prices are headed for a steep decline.

A research note from the firm said the decision will result in a quick buildup of petroleum inventories, which, "in conjunction with a sharp increase in oil supplies from OPEC in recent months, should be the catalyst for a steep drop in oil prices, in our judgement. We continue to believe that a price for West Texas Intermediate crude of $20 per barrel in 2001 is a reasonable expectation."

Bear Stearns said Amerada Hess' stock price likely will be under pressure when oil prices are falling. The firm said the stock has not reached its price target of $75 per share, but it has been a good performer, advancing 37% in the past seven months. "Given the company's sensitivity to changes in oil prices and the stock's recent performance, we believe the stock price could correct by some 15% to 20% from the current level," the note said.

Still, the firm said that the company's oil and gas production growth -- estimated at 10% in 2000 and 5% in 2001 -- exceeds that of most major oil companies and that it will continue to believe the long-term outlook for Amerada Hess is good. The company's stock closed down, though, by $1.38, or 2.1%, to $64.25.




: 12-month price target UP to $100 from $85 at

SG Cowen

. Alza finished the day down $3.31, or 3.8%, to $83.19.



: 2000 EPS estimates UP to $1.70 from $1.40 at

Donaldson Lufkin & Jenrette

; and 2001 EPS estimates UP to $1.95 from $1.70. Calpine closed up 81 cents, or 0.8%, to $97.25.

Emerson Electric

(EMR) - Get Emerson Electric Co. Report

: UP to buy from outperform at

Salomon Smith Barney

. The stock closed up $1.75, or 2.9%, to $62.75.

Neuberger Berman

(NEU) - Get NewMarket Corporation Report

: UP to buy from accumulate at

Merrill Lynch

. The company's stock finished the day up $2.38, or 3.9%, to $62.75.


TheStreet Recommends

(PCG) - Get PG&E Corporation Report

ADDED to recommended-for-purchase list at

Goldman Sachs

. It closed up 38 cents, or 1.4%, to $26.38.

Sprint PCS


: UP to buy from neutral at

Lehman Brothers

. The stock closed up $3.50, or 12.5%, to $31.50.


AmSouth Bancorp


: DOWN to neutral from buy at Lehman Brothers; and price target DOWN to $13 from $25. The stock closed down 75 cents, or 5.6%, to $12.69.



: price target UP to $190 from $125 at

Credit Suisse First Boston

. Cacheflow ended the day up $13.84, or 10.1%, to $151.03.



: DOWN to hold from outperform at

ABN Amro

. The stock finished down 56 cents, or 3%, to $18.06.



: UP to buy from outperform at ABN Amro. Coastal ended the day up 63 cents, or 0.9%, to $69.63.

Goodyear Tire

(GT) - Get Goodyear Tire & Rubber Company Report

: 2001 EPS estimate DOWN to 85 cents a share from $1.80 at

UBS Warburg

. Goodyear closed up 5 cents, or 0.3%, to $18.55.

Network Appliance

(NTAP) - Get NetApp, Inc. (NTAP) Report

: DOWN to buy from strong buy at

WIT Soundview

. The stock closed down $16.94, or 11.5%, to $130.44.


(NDSN) - Get Nordson Corporation Report

: DOWN to outperform from buy at ABN Amro; price target DOWN to $33 from $37; and 2001 earnings estimates to $2.05 from $2.10. Nordson ended the day down $1.06, or 3.9%, to $26.50.

Northeast Utilities


: DOWN to hold from outperform at ABN Amro; and price target DOWN to $23 from $26. The stock ended the day down $1.25, or 5.4%, to $22.06.

Owens & Minor

(OMI) - Get Owens & Minor, Inc. Report

: DOWN to hold from buy at CSFB. The stock closed down 81 cents, or 4.9%, to $15.81.



: 2000 EPS estimate DOWN to 80 cents a share from 95 cents at Goldman. Safeco ended the day down 39 cents, or 1.5%, to $26.38.


(VO) - Get Vanguard Mid-Cap ETF Report

: DOWN to hold from strong buy at

Prudential Securities

. The stock finished the day up 31 cents, or 0.6%, to $55.88.

Triad Guaranty


: DOWN to neutral from attractive at


. The stock ended the day down 94 cents, or 3.2%, to $28.81.

US Freightways


: DOWN to buy from strong buy at CSFB. The company closed down $4.20, or 15.2%, to $23.42.



: third-quarter 2000 EPS estimates DOWN to $1.10 from $1.53 at CSFB; and third-quarter 2001 EPS estimates DOWN to $5.95 from $6.85. USG closed down $1.44, or 5.2%, to $26.


Applied Power


: NEW strong buy at

Banc of America Securities

; price target: $65. The stock ended the day up 31 cents, or 0.8%, to $39.94.


(AXTI) - Get AXT, Inc. Report

: NEW buy at ABN Amro. AXT finished the day down $1.94, or 4.9%, to $37.75.


(ILMN) - Get Illumina, Inc. (ILMN) Report

: NEW outperformer at Goldman. The stock closed up 63 cents, or 1.6%, to $39.88.

TeleCommunication Systems


: NEW strong buy at

Deutsche Banc Alex. Brown

; price target: $38. The stock closed up $1.75, or 9.2%, to $20.88.

XL Capital

(XL) - Get XL FLEET CORP. Report

: NEW outperform at Lehman Brothers; price target: $85. XL closed up 94 cents, or 1.3%, to $73.94.

Group Moves

PaineWebber raised its ratings on five hotel companies:

  • Host Marriott (HMT) : UP to buy from attractive. Host Marriott ended the day up 6 cents, or 0.6%, to $10.69.
  • Starwood Hotels & Resorts (HOT) : UP to buy from attractive. The stock closed up 31 cents, or 1.1%, to $29.44.
  • Marriott International (MAR) - Get Marriott International, Inc. (MAR) Report: UP to attractive from neutral. The stock closed up 88 cents, or 2.3%, to $39.69.
  • MeriStar Hospitality (MHX) : UP to attractive from neutral. The stock ended the day down 31 cents, or 1.5%, to $20.75.
  • MeriStar Hotels and Resorts (MMH) : UP to attractive from neutral. The stock closed up 13 cents, or 4.8%, to $2.75.

Back to top

Offerings and stock actions


(AA) - Get Alcoa Corp. Report

announced it will restart its stock buyback program. The company did not specify how many stocks were authorized for repurchase or when the program had been suspended, but said it has some 868 million shares outstanding.

The aluminum company warned last week it would fall at least 8 cents a share short of analysts' earnings expectations for the third quarter. A

First Call/Thomson Financial

survey of 11 analysts gave the company a 42 cents a share EPS for the third quarter. Alcoa's stock has fallen more than $4 a share this week in the wake of the profit warning. Alcoa's stock ended the day down $1.25, or 5%, to $23.75.

Back to top




announced that it would reduce its work force by 45% and cut spending by 55% in a restructuring move to focus on international operations through partnerships in China. Adatom.com closed up 6 cents, or 7.7%, to 88 cents.

Sotheby's Holdings

(BID) - Get Sotheby's Report


Christie's International

agreed to pay a $512 million civil settlement to art buyers and sellers on charges that the auctioneers colluded on prices and cheated them. Sotheby's former chairman, A. Alfred Taubman, will pay nearly a third of the tab.

Taubman reached a separate agreement with Sotheby's for him to pay $156 million of the company's $256 million share of the civil settlement. He also agreed to pay $30 million in cash to settle claims by Sotheby's shareholders in a separate securities-fraud lawsuit.

Sotheby's said it had settled a shareholder class-action lawsuit for $30 million in cash and the issuance of $40 million in Sotheby's Class A common stock as settlement for their fraud claims, on top of the $30 million Taubman has agreed to pay them.

Christie's would owe $256 million under the deal. Sotheby's ended the day up $3.13, or 15.4%, to $23.44.

Can you say

Lernout & Hauspie


? The speech-recognition software company attempted to calm investor fears, telling the

Wall Street Journal

that nearly 30 of its Belgian and Singaporean start-ups are staffed and working on products. One of the companies is even close to beta-testing a Turkish speech-recognition program.

The recent comments from L&H were in response to the


Page One article on Friday. The article said there were no operations at two Singapore addresses shared by a small number of the start-ups, and that L&H -- which claimed that the start-ups accounted for 25% of its 1999 revenue -- hasn't been open with information about international incubation.

The recent


story is just the latest problem to plague the company. On Thursday, L&H announced that the

Securities and Exchange Commission

had begun investigating its financial statements.



Herb Greenberg

has also repeatedly raised

concerns about the company's accounting practices. L&H closed today down $1.13, or 8.3%, to $12.50.


(F) - Get Ford Motor Company Report

been under a great deal of pressure lately, what with the


fiasco cutting nearly 7% from its stock price in just three weeks. And today, the automaker's customers will be feeling the pressure as well. Reversing an earlier decision, Ford adjusted the pound per square inch inflation guidelines for its Explorer sport utility vehicles. These PSI figures have touched off more finger pointing than disco and become a major issue of contention between the tire-maker and the car-maker.

Now Ford says the 15-inch tires should be inflated to 30 PSI, instead of the decade-old 26 PSI standard, which was in place when the whole controversy started. Ford's stock closed down 19 cents, or 0.7%, to $25.44.

Webvan Group


named CEO George Shaheen as chairman of its board of directors. Shaheen replaces Louis Borders, Webvan's founder, who will continue as a director of the Internet retail company. Webvan's stock closed up 6 cents, or 2.2%, to $2.97.

Back to top

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.

Back to top