The Day's Winners

Shares of

Extreme Networks

(EXTR) - Get Report

rose 7% to $10 on an upgrade to strong buy from Merrill Lynch. Merrill said the company is on track for its June quarter, and there is upside potential on a stronger than expected economic recovery. Merrill also upgraded

Cisco

(CSCO) - Get Report

to strong buy, saying it expects a recovery in new orders in the second half of 2002.

AirGate PCS

(PCSA)

added 11% to $1.46 after the company received an upgrade to add from reduce at Credit Lyonnais. The firm believes there is value in the stock based on price and the increasing possibility of a resolution in the iPCS bank covenant issues. Credit Lyonnais maintained its $3 price target on the stock.

United Parcel Service

(UPS) - Get Report

was climbing 4% to $63.21 after the company said its second quarter was on track despite continuing package volume declines caused by contract negotiations. The company expects to earn 50 cents to 55 cents a share in the quarter, in line with its previous guidance and analysts' estimates. UPS added that it was making progress in negotiations with the Teamsters union, but the labor dispute has affected its business. Separately, the company was added to the

S&P 500

.

The Day's Losers

Shares of

Microchip Technology

(MCHP) - Get Report

were down 8% to $23.63 after boutique firm Avalon initiated coverage on the stock with a trading sell rating. Avalon says the stock is priced assuming perfect results, and the firm believes Microchip will issue disappointing guidance due to problems with

WorldCom

and other weak areas of business. Avalon set a price target of $20 on the stock. The stock sold off despite a defense from Banc of America, which said the sell-off is a buying opportunity.

Qwest

(Q)

plunged 27% to $1.91 after the company confirmed that it is the subject of a criminal investigation by the U.S. attorney's office in Denver, most likely centering on accounting issues. The company said it plans to cooperate fully with the investigation, but said the attorney's office didn't disclose the nature of the probe. Qwest is already the subject of an investigation into its network capacity swaps by the

Securities and Exchange Commission

.

ADC Telecommunications

( ADCT) shed 5% to $2.10 after warning that its third-quarter loss would be wider than expected. The company expects to lose up to 7 cents a share, compared with the consensus estimate of 5 cents. ADC also said its revenue will be about $235 million, missing the consensus of $282.9 million.

Ligand Pharmaceuticals

(LGND) - Get Report

fell 31% $6.58 after the company cut its revenue forecast and withdrew its application for approval of its Targretin cancer treatment. Ligand said its revenue in the second quarter would be $6 million to $8 million below previous estimates on weaker orders and lower demand. Ligand added that it would still meet its full-year forecast, but it has withdrawn its European application for Targretin gel as a cancer treatment. Ligand said it was not willing to conduct new clinical trials as requested by regulators because the trials "could not reasonably be conducted prior to approval and were not economically justified."