Updated from 11:52 a.m. EDT

Shares of

ADVO

(AD)

were among the

NYSE's

losers Tuesday after the company warned that full-year earnings for 2004 and 2005 would fall short of expectations.

The print advertising company said that it plans to expand its business in several markets, but that costs associated with the expansion will eat into the company's profits. As a result, it now expects 2004 earnings of $1.70 a share and 2005 earnings of $1.80 to $1.85 a share. Analysts surveyed by Thomson First Call were expecting earnings of $1.80 during 2004 and earnings of $2.05 during 2005. ADVO plans to expand in Southern California, Pittsburgh-Youngstown, and Raleigh-Durham, N.C. Shares of ADVO traded down $3.96, or 12.1%, to $28.85.

Caterpillar

(CAT) - Get Report

gained after the stock was upgraded to outperform from neutral at Goldman Sachs. The brokerage said the machinery maker's shares have fallen too far and could see upside approaching 40% if the economy holds. Caterpillar traded up $1.10, or 1.5%, to $73.15.

Sanderson Farms

(SAFM) - Get Report

fell after it turned in disappointing third-quarter results and warned that full-year earnings would not meet expectations. During the third quarter, the poultry producer earned $1.69 a share on sales of $293.9 million. Analysts were expecting earnings of $1.93 a share on sales of $290.2 million. Looking ahead, Sanderson expects to post full-year earnings of $4.85 to $5.35 a share. Analysts were looking for earnings of $6.05 a share. Shares of Sanderson Farms traded down $11.12, or 24.2%, to $35.90.

Shares of

Perry Ellis International

(PERY) - Get Report

rose after the company posted second-quarter financial results that were better than expected. The clothing designer posted a loss of 29 cents a share on sales of $126.4 million. Analysts were expecting a loss of 30 cents a share on sales of $122.5 million. Looking ahead, the company said it remains comfortable with its full-year earnings and sales guidance of $2.50 to $2.60 a share on sales of $610 million. Analysts are expecting earnings of $2.56 a share on sales of $640 million. Shares traded up $1.18, or 5.7%, to $21.90.

Jackson Hewitt Tax Service

(JTX)

rose after it posted a narrower-than-expected loss during its first quarter as a publicly traded company. Excluding a charge, the tax preparation company posted a loss of 23 cents a share on sales of $8.78 million. Analysts were expecting a loss of 33 cents a share. Jackson Hewitt went public in June 2004. Shares traded up 69 cents, or 3.8%, to $18.90.

Shares of

Precision Castparts

(PCP)

rose after the company's shares were upgraded by Banc of America Securities. Citing the company's exposure to an improving aerospace market and strong growth opportunities, Banc of America Securities raised its rating on the metal component maker to buy from neutral and upped its price target to $64 from $59. Shares of Precision Castparts traded up $3.65, or 7%, to $55.92.

NYSE volume leaders included

Lucent

(LU)

, down 4 cents to $3.07;

Nortel Networks

(NT)

, down 6 cents to $3.94;

General Electric

(GE) - Get Report

, up 12 cents to $32.63;

EMC

(EMC)

, down 16 cents to $10.66; and

Texas Instruments

(TXN) - Get Report

, down 57 cents to $19.69.

Nasdaq

volume leaders included

Intel

(INTC) - Get Report

, down 22 cents to $21.67;

Cisco

(CSCO) - Get Report

, down 21 cents to $18.97;

Oracle

(ORCL) - Get Report

, up 3 cents to $10.33;

Microsoft

(MSFT) - Get Report

, unchanged at $27.24;

Applied Materials

(AMAT) - Get Report

, down 29 cents to $15.93; and

Sun Microsystems

(SUNW) - Get Report

, up 10 cents to $3.77.