Updated from 11:46 a.m.

Sola

(SOL) - Get Report

jumped 25% after the company agreed to a $1.1 billion merger with two European firms.

The San Diego-based maker of plastic eyeglass lenses said it would sell its shares to the new group at $28 apiece. The new company will be led by Carl Zeiss AG of Oberkochen, Germany, and EQT III, a European private equity firm spun off from the Wallenberg group.

"This merger represents an ideal strategic fit for Sola as it enables the company to strengthen its geographic presence in Europe and Asia Pacific and provide for improved utilization of the company's manufacturing and distribution facilities," said CEO Jeremy Bishop.

Sola rose $5.41 to $27.52.

Circuit City

(CC) - Get Report

dropped 7% Monday after posting a third-quarter same-store sales drop.

The Richmond, Va., electronics seller said third-quarter sales in stores open at least a year fell 4.3% from a year ago, due in part to decreased promotions. Total sales rose 3.8% to $2.5 billion.

The news comes just a week after retail juggernaut

Wal-Mart

(WMT) - Get Report

shocked Wall Street with weak Thanksgiving numbers, also blaming a failure to offer the discounts consumers have come to expect.

"Our sales performance in the third quarter did not meet our expectations, and the weakness was magnified by a number of factors," Circuit City said Monday. "The decision to promote and price music less aggressively and to limit quantities of the most promotional offers on the Friday after Thanksgiving had a negative impact on that day's sales."

Circuit City slipped $1.08 to $15.13.

Jos. A. Bank

(JOSB)

slid 8% after the men's clothing retailer posted soft same-store sales growth.

The Hampstead, Md., store chain said third-quarter earnings rose to 24 cents from 20 cents a year earlier, in line with Wall Street estimates. Sales rose 15% from a year ago to $82.6 million. But same-store sales rose just 0.4%, while Internet and catalog sales rose 19%, the company said.

Jos. A. Bank shares slipped $2.17 to $24.06.

Navistar

(NAV) - Get Report

fell 6% after the trucking company warned that it may need to restate some previous financials.

The Warrenville, Ill., company guided up for its fourth quarter and full year, saying engine shipments are at record levels and that the company's improved cost structure is bolstering the bottom line. Navistar expects to earn $1.88 a share for the fourth quarter, up from $1 last year and matching its 1979 earnings record.

But the company also said it was working through bookkeeping issues at its finance unit, and that resolution of those issues may force a restatement.

"It is anticipated that the reinterpretation of securitization accounting at Navistar Financial Corporation, the company's finance subsidiary, will cause Navistar Financial to adjust its income for the periods 2002-2004," Navistar said early Monday. "The company believes that the anticipated, positive adjustment to net income is likely to be immaterial to the parent company's financial statements. The adjustment will change certain aspects of the accounting associated with Navistar Financial's retail note securitization program. Navistar Financial intends to adjust the comparative periods 2002 and 2003 for its income statement, and the 2003 balance sheet in its 2004 Form 10-K. As a result of Navistar Financial's planned adjustment, it is possible that Navistar International Corporation may restate its financial statements."

Navistar fell $2.42 to $38.73.

Cablevision

(CVC)

dropped 2% after once again delaying the spinoff of its satellite and programming subsidiary.

In a Friday afternoon filing at the

Securities and Exchange Commission

, the Long Island-based cable-TV operator said the spinoff of its Rainbow Media Enterprises subsidiary wouldn't take place in 2004. Originally, the company forecast that the tax-free spinoff of RME to shareholders would take place by Sept. 30, but it later delayed the transaction until the fourth quarter.

Slated to be spun off as part of RME are three well-respected national programming services owned by Cablevision: American Movie Classics, the Independent Film Channel and WE: Women's Entertainment. More problematically for most investors, RME is also slated to operate Voom, Cablevision's startup satellite-TV service focused on delivering high-definition television channels.

Cablevision dropped 43 cents Monday to $21.12.

New York Stock Exchange

volume leaders included

Lucent

(LU)

, flat at $3.87;

Pfizer

(PFE) - Get Report

, down 68 cents to $27.21;

Motorola

(MOT)

, up 45 cents to $18.30;

Nortel

(NT)

, down 2 cents to $3.67; and

Advanced Micro

(AMD) - Get Report

, up $1.63 to $24.85.

On the

Nasdaq

, volume leaders were

Sirius

(SIRI) - Get Report

, up 54 cents to $8.09;

Biomira

(BIOM)

, up 29 cents to $3.57;

Intel

(INTC) - Get Report

, up 10 cents to $24.01;

Sun Micro

(SUNW) - Get Report

, up 23 cents to $5.44; and

Oracle

(ORCL) - Get Report

, up 31 cents to $13.34.