Updated from 11:36 a.m. EDT

Shares of

Eastman Chemical

(EMN) - Get Report

were among the

NYSE's

losers Tuesday, falling 8.9% after the company warned that its fourth-quarter earnings would fall below previous guidance and Wall Street expectations.

Excluding items, the company now expects earnings to be near the low end of its previously announced earnings range of 42 cents to 63 cents a share. Analysts polled by Thomson First Call had been expecting earnings of 59 cents a share. Eastman blamed the shortfall on higher raw material and energy costs. The company said costs increased by more than $100 million in the fourth quarter compared with the third quarter. Looking ahead, Eastman said it plans to implement price increases during the first quarter in an effort to offset higher raw material and energy costs. Shares traded down $5.11 to $52.19.

Sonic

(SONC)

rose 6.1% after the restaurant operator posted first-quarter earnings that topped expectations. The company posted a profit of $16 million, or 26 cents a share, on sales of $142.2 million. Analysts were expecting earnings of 25 cents a share on sales of $136.7 million. A year ago Sonic earned $12.8 million, or 21 cents a share, on sales of $118.7 million. Same-store sales rose 8.1%, ahead of the company's long-term target range of 2% to 4%. Looking ahead, Sonic forecast second-quarter earnings of 19 cents a share on sales growth of 13% to 15%, which implies sales of $126.1 million to $128.3 million. Analysts are expecting earnings of 20 cents a share on sales of $127.3 million. Shares traded up $1.80 to $31.44.

Shares of

Steel Technologies

(STTX)

rose modestly after the company said that first-quarter earnings would beat expectations. The flat-rolled steel processor expects earnings of about $1.10 a share on sales of $250 million. Analysts had been expecting earnings of 96 cents a share on sales of $221.3 million. The company expects to announce its earnings results on Jan. 24. Shares traded up 6 cents to $27.87.

Jacobs Engineering Group

(JEC) - Get Report

rose slightly Tuesday after the company said that one of its subsidiaries won a five-year contract worth up to $1.15 billion. The company said the subsidiary would begin work on the contract beginning Feb. 1. As part of the deal, Jacobs will provide engineering and science services to NASA's Johnson Space Center in Houston. Shares traded up 1 cent to $46.39.

Shares of

Rayovac

( ROV) jumped 17.2% after the company said it would buy privately held United Industries for about $476 million in cash and stock, based on Rayovac's closing price of $29.56 a share on Monday. As part of the deal, Rayovac will issue 13.75 million shares and pay United Industries $70 million in cash. Rayovac will also assume about $880 million in debt and assume a cash tax benefit of $140 million, bringing the total value of the deal to about $1.2 billion. The battery maker said the acquisition would extend its household products offerings into the lawn and garden and specialty pet-supply categories. The acquisition, which is expected to close in February, should be slightly accretive to earnings during the first year, the company said. Shares traded up $5.09 to $34.65.

NYSE volume leaders included

Lucent

( LU), down 6 cents to $3.72;

Pfizer

(PFE) - Get Report

, unchanged at $26.45;

Nortel

( NT), down 20 cents to $3.35;

Sprint

( FON), down 80 cents to $24.05;

Advanced Micro Devices

(AMD) - Get Report

, down $1.20 to $20.21; and

General Electric

(GE) - Get Report

, down 44 cents to $36.15.

Nasdaq

volume leaders included

Sun Microsystems

(SUNW) - Get Report

, down 48 cents to $4.63;

Microsoft

(MSFT) - Get Report

, up 10 cents to $26.84;

Cisco

(CSCO) - Get Report

, down 76 cents to $18.56;

Intel

(INTC) - Get Report

, down 46 cents to $22.61;

Oracle

(ORCL) - Get Report

, down 35 cents to $13.06; and

Sirius Satellite Radio

(SIRI) - Get Report

, up 3 cents to $7.51.