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Both the Nasdaq Composite Index and the Dow Jones Industrial Average were trading higher this afternoon, thanks to investors who heated up the market by rescuing technology stocks left out in the cold yesterday.

S&P 500

company

Champion International

(CHA) - Get China Telecom Corp. Ltd. Report

jumped 11 11/16, or 22.7%, to 63 1/8, after

International Paper

(IP) - Get International Paper Company Report

made an unsolicited offer to buy the paper producer for $6.2 billion in cash and stock, or $64 a share. International Paper fell 2 7/8, or 7.2%, to 37 1/8, on the news.

IP's move could ignite a bidding war with Helsinki-based

UPM-Kymmene

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, which announced an all-stock deal to buy Champion in February. International Paper also said it intends to shed $3 billion in assets by the end of 2001 to focus on its core businesses.

Deutsche Banc Alex. Brown

cut its rating on International Paper to buy from strong buy.

Mergers, acquisitions and joint ventures

Applied Digital Solutions

TheStreet Recommends

(ADSX)

announced it has signed a definitive agreement to buy

Destron Fearing

(DFCO)

. Applied Digital had announced plans to purchase the company in a stock deal.

Williams Communications

(WCG) - Get WellCare Health Plans, Inc. Report

said it has completed a $215 million agreement to provide network services and dark fiber to Internet service provider

Cogent Communications

.

--

Eileen Kinsella and Betsy Riley

Earnings/revenue reports and previews

(

Earnings estimates from First Call/Thomson Financial; earnings reported on a diluted basis unless otherwise specified.

)

Affiliated Computer Services

(ACS)

reported 53 cents a share on net income, beating year-ago earnings of 43 cents and the eight-analyst estimate by a penny. The company said income a share, excluding goodwill amortization was 62 cents, up from 50 cents a year ago.

Chubb

(CB) - Get Chubb Limited Report

posted first-quarter operating income of 85 cents a share. The 18-analyst estimate was for 94 cents, while the year-ago earnings were $1.02. The company said net income in the latest quarter was 87 cents a share, including catastrophe-related losses of 11 cents a share.

Soap maker

Dial

(DL) - Get China Distance Education Holdings Ltd. Report

reported first quarter earnings per share of 23 cents, in line with the 8-analyst estimate, and off from the year-ago figure of 26 cents per share.

Holding company

GATX

(GMT)

reported first-quarter earnings per share of 82 cents, missing the 3-analyst estimate of 83 cents by a penny but beating its year-ago figure of 78 cents a share.

Hasbro

(HAS) - Get Hasbro, Inc. Report

posted first quarter earnings of 8 cents a share including a loss of 1 cent a share, well above the seven-analyst estimate of 1 cent and up from the year-ago 7 cents a share. The company said its outlook for the full year remains positive and said it sees 2000 revenue growth at about 5% and earnings per share up 10%, excluding items.

Primedia

(PRM)

posted a first-quarter loss of 35 cents a share including a gain. The two-analyst expected loss was 34 cents while the year-ago loss was 41 cents.

Phelps Dodge

(PD) - Get PagerDuty, Inc. Report

reported first-quarter earnings per share of 25 cents. The company beat the 12-analyst estimate of 23 cents for the quarter, and far outpaced its year-ago loss of 11 cents.

Procter & Gamble

(PG) - Get Procter & Gamble Company Report

posted third-quarter earnings of 64 cents a share, in line with the lowered 12-analyst estimate. Year-ago results were not available.

Dollar General

(DG) - Get Dollar General Corporation Report

said it set a 5-for-4 stock split.

--

Eileen Kinsella and Betsy Riley

Offerings and stock actions

Dollar General

(DG) - Get Dollar General Corporation Report

lost 5/16 to 22 7/8 after it set a 5-for-4 stock split.

Analyst actions

Micromuse

(MUSE)

: NEW buy at Lehman Brothers; price target: 100. Micromuse lifted 4 1/8, or 5.1%, to 85 1/8.

Oracle

(ORCL) - Get Oracle Corporation Report

: NEW buy; price target: 100 at Lehman. Oracle traded higher 2 to 74 7/16.

Redback Networks

(RBAK)

NEW recommended at

Goldman Sachs

. Redback jumped 13, or 24%, to 67 1/4.

Upgrades

Amphenol

(APH) - Get Amphenol Corporation Class A Report

: UP to buy from outperform; Year earnings estimate per share UP to $4.10 from $3.75 and the 12-month price target UP to 150 from 115 per share. Amphenol advanced 10 1/4, or 9.4%, to 210 1/2.

Corning

(GLW) - Get Corning Inc Report

: UP to near-term buy from accumulate at

Merrill Lynch

. Corning popped 23, or 15.2%, to 174.

French biotech company

Genset

(GENXY)

: UP to trading buy from market performer at Goldman Sachs. Genset rose 1 5/8, or 8.8%, to 20 1/8.

Grubb & Ellis

(GBE)

: UP to buy from market performer at

Banc of America

. Grubb & Ellis moved up 1/8 to 5 7/16.

Ivex Packaging

(IXX)

: UP to attractive from neutral at

Bear Stearns

. The company traded down 1/16 to 9 7/16.

Kemet

(KEM) - Get KEMET Corporation Report

: price target UP to 125 from 115 at Merrill Lynch. Kemet boosted 3 to 65 1/2.

Silicon Valley Bancshares

(SIVB) - Get SVB Financial Group Report

: UP to buy from neutral at Bear Stearns. Silicon Valley Bancshares climbed 3 7/8, or 7%, to 59 1/4. .

Downgrades

Starbucks

(SBUX) - Get Starbucks Corporation Report

: DOWN to market performer from buy at Banc of America. Starbucks fell 2 3/4, or 6.9%, to 37 3/16.

Initiations

Applebee's International

(APPB)

: NEW buy at Bear Stearns; price target: 48. Applebee's edged up 15/16 to 34 15/16.

Arrowpoint Communications

(ARPT)

: NEW buy at J.P. Morgan and new market performer at Goldman Sachs; price target:150 at J.P. Morgan . Arrowpoint Communications lost 2 15/16 to 86.

Bottomline Technologies

(EPAY) - Get Bottomline Technologies (de), Inc. Report

: NEW near-term accumulate/buy rating at Merrill Lynch; 12-18 month price target 60. The shares gained 3 1/4, or 8.6%, to 41 1/4.

Gadzoox

(ZOOX)

: NEW buy at

Credit Suisse First Boston

; 12-month price target 50. Gadzoox slipped 1 7/8, or 5.8%, to 30 1/2.

Liz Claiborne

(LIZ)

: NEW recommend at Goldman Sachs. The clothing retailer boosted 3 5/8, or 8.2%, to 48 1/16.

Mercator Software

(MCTR)

: NEW buy at Lehman Brothers; price target:50. Mercator Software rose 3/4 to 41.

Mercury Interactive

(MERQ)

: NEW buy rating; price target: 80 at Lehman Brothers. Mercury hopped 6 3/8, or 9.7%, to 72 1/8.

Viasystems

(VG) - Get Vonage Holdings Corp. Report

: NEW strong buy; price target of 21 at CSFB. Viasystems gained 1/4 to 14 1/16.

Group Moves

Salomon Smith Barney

initiated coverage of three drug retailing companies:

Walgreen

(WAG)

at buy; price target: 28. Walgreen stayed flat at 28 3/4.

CVS

(CVS) - Get CVS Health Corporation Report

at outperform; price target: 44. CVS rose 1 11/16 to 45 11/16.

Long Drug Store

(LDG)

at neutral; price target: 23. Long Drug Store boosted 1/2 to 24 1/2.

Salomon Smith Barney also initiated coverage of four supermarkets:

Safeway

(SWY)

at buy; price target: 56. Safeway dropped 1/4 to 49 3/16.

Kroger

(KR) - Get Kroger Co. Report

at outperform; price target: 20. Kroger advanced 1/8 to 19.

Albertson's

(AB) - Get AllianceBernstein Holding L.P. Report

at neutral; price target: 35. Albertson's added 1/8, or 6.7%, to 2.

Delhaize America

(DZA)

at neutral; price target: 19. Delhaize America fell 1/4 to 18 1/8.

Miscellany

The Heard on the Street column in

The Wall Street Journal

looks at a comprehensive study of tracking stocks, which concluded that the increasingly popular issues don't live up to the hype. Tracking stocks allow companies to offer stock in a subsidiary to the public without giving up control over the business, and are often used as a way to take advantage of Internet subsidiary valuations.

Among the disappointing results noted: The long-term performance of tracking stocks has been subpar compared with some market benchmarks; parent companies who issue the stocks don't seem to get much of a boost in share price; and tracking stocks don't even seem to meet their intended goal of helping analysts understand companies by breaking out separate businesses.