Updated from 10:27 a.m. EST

Standard & Poor's will remove

Kmart

(KM)

from the

S&P 500

after the close of trading Wednesday and replace the discount retailer with

Plum Creek Timber

(PCL)

.

Activision

(ATVI) - Get Report

will replace

Covanta Energy

(COV)

in the S&P MidCap 400.

DRS Technologies

(DRS)

will replace

Foster Wheeler

in the SmallCap 600.

Earnings Reports & Outlooks

Abbott Laboratories

(ABT) - Get Report

earned 52 cents a share in the fourth quarter excluding items, matching the consensus estimate. Including items, the company earned 39 cents. Sales rose 20% from a year ago to $4.45 billion. For 2002, Abbott expects earnings of $2.24 to $2.26 a share. The company forecast first-quarter earnings of 54 cents. According to First Call, analysts expect first-quarter earnings of 55 cents and full-year earnings of $2.25.

Knight Trading

(NITE)

posted fourth-quarter earnings of 11 cents a share, 2 cents ahead of the First Call consensus estimate. Revenue fell 35% to $162.3 million.

LSI Logic

TheStreet Recommends

(LSI) - Get Report

is cutting its workforce by 20% as part of a restructuring program, and the company expects a fourth-quarter loss of 23 cents a share. The company will take a charge of $50 million to $70 million in the first quarter to cover the restructuring. The company said it hopes to return to profitability by the second half of the year.

Mergers, Acquisitions & Joint Ventures

Providian Financial

(PVN)

agreed to sell the Providian Master Trust, held by its main bank unit Providian National Bank, to a division of

J.P. Morgan Chase

(JPM) - Get Report

. The Providian Master Trust contains about 3.3 million active credit card accounts with $8.2 billion of associated receivables.

Offerings

Adelphia Communications

(ADLAC)

sold 40 million Class A common shares at $25.50 each. In addition, the company sold $500 million of convertible preferred stock. Adelphia collected proceeds of around $1.49 billion.

Miscellaneous News

Biotech company

Immunex

(IMNX)

said its rheumatoid arthritis drug Enbrel has received regulatory approval as a treatment for psoriatic arthritis. The approval of the label expansion for Enbrel by the Food and Drug Administration was expected.

Inspire Pharmaceuticals

(ISPH)

said the company's proposed treatment for dry eyes wasn't effective in a late-stage clinical trial of the product. The company is conducting another late-stage study of the treatment, referred to as INS365. The company will decide whether to continue the program when the results of the second trial are available.

Cingular Wireless

will use software from

Lucent

(LU)

to provide interoperability between the wireless carrier's existing TDMA and GSM networks in the U.S. Cingular Wireless is a joint venture between

BellSouth

(BLS)

and

SBC

(SBC)

.