Marriott International (MAR) - Get Report and Hyatt said they have agreed to establish a Web company that would sell supplies to hotels. The hotel giants said its hotels would purchase about $5 billion in supplies from the site and expect other companies to sign on to the venture, which will be launched later this year. The companies said they have tapped Dennis Baker, executive vice president of Marriott as the venture's COO.

Mergers, acquisitions and joint ventures

Clarent

(CLRN)

, an Internet telecommunications provider, will acquire

Act Networks

(ANET) - Get Report

, a data networking products maker, in a stock deal valued at approximately $189 million.

Texaco

(TX) - Get Report

and

Energy Conversion Devices

(ENER)

said that they have entered a deal, calling for Texaco to purchase a 20% stake in Energy Conversion for $67.3 million. The companies said that they would set up partnerships involving the development of advanced energy technologies. Texaco's stake will be run by its

Texaco Energy Systems

division.

--

Tara Murphy

and

Diane Gross

Earnings/revenue reports and previews

Telephone giant

AT&T

(T) - Get Report

reported earnings of 53 cents a share, in line with a 15-analyst estimate according to

First Call/Thomson Financial

, but down from the same quarter of last year's 61 cents. The company, which plans to acquire cable television company

MediaOne Group

(UMG)

, said its first-quarter operating profits fell 13.1%, as merger costs and declining consumer sales offset strong sales of wireless and business services.

See separate coverage from

TheStreet.com/NYTimes.com's

joint newsroom for more details on this

story.

Beverly Enterprises

(BEV)

posted first-quarter earnings of 6 cents a share, in line with both the 11-analyst estimate and the year-ago report.

Dell Computer

(DELL) - Get Report

director Mort Topfer told investors at a

Merrill Lynch

technology conference that the computer maker would probably not experience a recovery in Europe until the second half of 2000. During the fourth quarter of fiscal 1999, the company reported 8% revenue growth in Europe as compared with its total revenue growth of more than 30%.

Emerson Electric

(EMR) - Get Report

reported second-quarter earnings of 82 cents a share, a penny better than the 11-analyst estimate and up from the year-ago 74 cents. The company said it is confident that its fiscal 2000 earnings will fall in line with earlier expectations but said that its positive outlook is moderated by slowness in the automation market recovery and ongoing devaluation of the euro. The 11-analyst estimate expects the company to post a fiscal 2000 profit of $3.31.

Enron

(ENE)

said its EnronOnline Internet trading operation notched up $2.5 billion in sales during the last week of April. The online operation was launched in late November to enable businesses to buy and sell electricity, natural gas and other commodities with Enron acting as the principal in all deals. Separately, Enron told

Reuters

the company expects to start wholesale electricity trading in Japan within three months.

Expedia

(EXPE) - Get Report

posted a third-quarter loss of 40 cents a share, narrower than the four-analyst estimate of a 57-cent loss. The company does not have a year-ago per share comparison because its IPO was held in November 1999.

The Web travel service, which is 85% owned by

Microsoft

(MSFT) - Get Report

, posted revenue of $31.9 million, greatly surpassing the year-ago report of $11.2 million. Expedia attributed the strong results to the success of its hotel room and tour package sales.

Forest Labs

(FRX)

reported fourth-quarter earnings of 31 cents a share, beating the 16-analyst estimate of 27 cents a share but down from the year-ago 45 cents a share.

Performance Food

(PFGC) - Get Report

reported first-quarter earnings of 27 cents a share, a penny better than the eight-analyst estimate and up from the year-ago 22 cent-profit.

Storage Tech

(STK) - Get Report

reported a first-quarter loss of 22 cents a share, narrower than the six-analyst estimate of a 24-cent loss but down from the year-ago 6-cent profit.

--

Tara Murphy

and

Diane Gross

Offerings and stock actions

Underwriter

St. Paul

(SPC)

plans to buy back up to $300 million shares, the company announced today.

Analyst actions

Microsoft

(MSFT) - Get Report

shares slid after

Morgan Stanley Dean Witter

tech analyst Mary Meeker reiterated her market outperform but said that she likes the stock, "in the 60's."

Morgan Stanley Dean Witter raised

Teekay Shipping's

(TK) - Get Report

price target to 36 from 32 and kept its "outperform" recommendation. Analysts said the recovery in the Far East economy and OPEC production increases was causing the tanker market to tighten.

Morgan Stanley said an imminent new building boom would drive new building prices and secondhand values higher, although ultimately this poses a threat to the industry. The new price target was a result of an increased year-end Net Asset Value estimate of $30, raised from $26, which was then boosted by the standard 20% share price premium for the stock.

Upgrades

BroadVision

(BVSN) - Get Report

: UP to strong buy at

Credit Suisse First Boston

, price target: 70.

Credence Systems

(CMOS)

: fiscal 2000 earnings estimate UP to $4.25 a share from $3.60 and fiscal 2001 estimate UP to $6.10 from $4.75 at Credit Suisse First Boston, price target UP to 180 from 170.

Ericsson

(ERICY)

earnings per share estimates UP at Deutsche Banc Alex Brown.

Globix

(GBIX)

: revenue estimates UP to $47.8 million from $45.5 million for 2000 at Lehman Brothers.

Kana

(KANA)

: ADDED to recommended list at

Goldman Sachs

.

Downgrades

Compuware

(CPWR)

: first-quarter earnings estimate DOWN to 16 cents a share to 26 cents at Credit Suisse First Boston; hold rating REITERATED.

Pacific Sunwear

(PSUN)

: CUT to buy from strong buy at

US Bancorp Piper Jaffray

.

Shared Medical Systems

(SMS)

DOWN to hold from buy at UBS Warburg following the company's announcement of a proposed merger with Germany's

Siemens AG

(SMAWY)

.

Stone & Webster

(SW)

: DOWN to sell from hold at Credit Suisse First Boston.

Initiations

Maxygen

(MAXY)

: NEW buy at Credit Suisse First Boston.

Modem Media

(MMPT)

: NEW strong buy at CSFB, price target: 35.

Saba Software

(SABA)

: NEW intermediate, long-term buy at

Merrill Lynch

.

Ulticom

(ULCM)

: NEW buy at

Lehman Brothers

.

Group Moves

A number of brokerages started coverage of

AT&T Wireless

(AWE)

this morning:

  • ABN Amro initiated coverage with a buy and a price target of 40.
  • Merrill Lynch initiated coverage with a intermediate-long-term buy rating and a 12-18 month price target of 44 a share.
  • Goldman Sachs started coverage with a recommend rating and a year-end 2000 price target of 42 a share.
  • UBS Warburg initiated coverage as a buy and set a price target of 43. UBS also initiated coverage of Palm (PALM) as a hold with a target of 24.

Lehman Brothers initiated coverage of four brokerages this morning:

  • Charles Schwab (SCH) at neutral.
  • Goldman Sachs (GS) - Get Report at neutral.
  • Merrill Lynch (MER) at outperform.
  • Morgan Stanley (MWD) at neutral.

--

Tara Murphy

and

Diane Gross

Miscellany

Dallas Fed

President Robert McTeer told the

Washington Association of Money Managers

that "U.S. inflation is showing signs of resisting arrest," which could ignite investors' fears of a 50-basis-point rate hike at the May 16

Federal Open Market Committee meeting.

McTeer, who has held the principle that higher productivity growth enabled the economy to flourish with lower inflation, also called the stronger-than-expected March

Consumer Price Index figure a "terrible number," according to

Reuters

. However, McTeer went on to say he thinks the overall U.S. inflation rate is likely to decline in coming months as energy prices ease.

Amazon.com

(AMZN) - Get Report

is making a foray into the culinary market with a new online kitchen store. Amazon said the store will offer recipes, cooking tips, product reviews and culinary products and accessories.

Standard & Poor's

said software maker

Siebel Systems

(SEBL)

will replace

CBS

(CBS) - Get Report

in the

S&P 500 Index

. CBS is set to be bought by

Viacom

(VIA) - Get Report

for about $47 billion in stock.

--

Tara Murphy

and

Diane Gross