Stocks to Watch: Micron Reports Lower-Than-Expected Earnings

A struggling Bank One considers selling its year-old Internet bank, WingspanBank.com.
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Micron Technology

(MU) - Get Report

reported second-quarter earnings of 58 cents a share, which includes a charge, far short of the

First Call/Thomson Financial

22-analyst estimate of 74 cents, but up from the year-ago 8 cents, which also includes a charge. Micron said that average selling prices for its semiconductor memory products fell 20% in the second quarter from the first quarter. Gross margins of the company's semiconductor operations fell to 41% from 58% in the previous quarter.

For more on Micron's

results, see a separate story from

TheStreet.com/NYTimes.com

joint newsroom.

Mergers, acquisitions and joint ventures

Bank One

(ONE) - Get Report

is

looking into selling its Internet bank,

WingspanBank.com

, which was launched less than a year ago,

The Wall Street Journal

reported. The newspaper said Bank One, whose stock collapsed last August and hasn't even come close to recovering, has hired

Morgan Stanley Dean Witter

to advise it on a possible sale.

Cytec Industries

(CYT)

said it is "pursuing strategic options for its paper chemicals business" and has hired

Credit Suisse First Boston

to help. Cytec said its paper chemicals business had pro forma sales of $100 million in 1999.

DaimlerChrysler

(DCX)

is taking a look at acquiring a controlling stake in Japan's

Mitsubishi

, according to published reports.

The

Federal Trade Commission

has begun a preliminary probe into plans by

Ford

(F) - Get Report

,

General Motors

(GM) - Get Report

and DaimlerChrysler to build an online parts market, the

Journal

reported. The newspaper said that spokesmen for the auto titans said they weren't aware of a probe but anticipated the alliance among the big automakers to move forward.

Household International

(HI) - Get Report

is buying the $2.15 billion real estate loan portfolio in cash from

Banc One Financial Services

, the consumer finance division of

Bank One

(ONE) - Get Report

.

PSINet

(PSIX)

is buying

Metamor Worldwide

(MMWW)

for $44.55 a share, a whopping premium to Metamor's closing price of $16 yesterday. Under terms of the deal, Metamor shareholders will receive 0.9 of a PSINet share for each Metamor share they own.

PepsiCo

(PEP) - Get Report

and

Yahoo!

(YHOO)

set a joint online and offline promotional program,

PepsiStuff.com

.

Earnings/Revenue Reports and Previews

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

Dean Foods

(DF) - Get Report

posted third-quarter earnings of 67 cents a share, shy of the nine-analyst estimate of 71 cents but up from the year-ago 20 cents.

Gucci

(GUC)

posted full-year 1999 net income of $3.48 a share, a penny ahead of the seven analyst estimate and up from the year-ago $3.28. For the fourth quarter, Gucci reported net income of 97 cents a share, a penny ahead of the five-analyst estimate but down from the year-ago $1.12.

Offerings and stock actions

Chase Manhattan

(CMB)

set a 3-for-2 stock split.

BancBoston Robertson Stephens

priced 3.5 million shares of

inSilicon

(INSN)

at $12 each, above the expected $9-to-$11 range. inSilicon, which is a unit of

Phoenix Technologies

(PTEC)

, uses communications technology to design complex semiconductors for devices such as network routers and cell phones.

Hutchison Whampoa

sold a huge portion of its stake in

Vodafone AirTouch

(VOD) - Get Report

.

Reuters

said

Deutsche Bank

and

Goldman Sachs

placed 925 million shares of Vodafone at 349 pence each.

Analyst actions

This morning, Morgan Stanley Dean Witter launched coverage of five companies involved in the manufacturing of construction and home building materials.

Martin Marietta

(MLM) - Get Report

,

Masco

(MAS) - Get Report

and

Vulcan

(VMC) - Get Report

were all initiated with market outperform ratings.

Lafarge

(LAF)

and

Armstrong World

(ACK)

were launched with neutral ratings.

Analog Devices

(ADI) - Get Report

: coverage INITIATED with a buy rating at

Salomon Smith Barney

.

Belco Oil & Gas

(BOG)

: coverage INITIATED with a buy rating and an 11 price target at

Deutsche Banc Alex. Brown

.

Broadcom

(BRCM)

: coverage INITIATED with a buy rating at

W.R. Hambrecht

.

Elan

(ELN)

: coverage INITIATED with a recommended list rating and a 55 price target at Goldman Sachs.

Garden.com

(GDEN) - Get Report

: coverage INITIATED with a buy rating at W.R. Hambrecht.

Hotel Reservations Network

(ROOM)

: coverage INITIATED with buy ratings at

Bear Stearns

and

Donaldson Lufkin & Jenrette

.

JDS Uniphase

(JDSU)

: coverage INITIATED with a buy rating and a 180 price target at W.R. Hambrecht.

Micron Technology

(MU) - Get Report

: earnings estimate DOWN to 13 cents per share from 24 cents at

D.A. Davidson

.

Natural Microsystems

(NMSS)

: rating UP to strong buy from by at Deutsche Banc Alex. Brown.

Nextcard

(NXCD)

: coverage INITIATED with a strong buy rating and a price target of 43 at

Wit Soundview

.

Northrop

(NOC) - Get Report

: 2000 earnings estimate UP to $8.35 per share from $7.20 at

SG Cowen

.

SDL

(SDLI)

: coverage INITIATED with a buy rating at W.R. Hambrecht.

Travelers Property Casualty

(TAP) - Get Report

: rating DOWN to hold from strong buy at

Warburg Dillon Read

.

Miscellany

Autodesk

(ADSK) - Get Report

said the Federal Trade Commission has ended its nonpublic investigation of the company's business practices.

Bye-bye Rezulin.

Warner-Lambert

(WLA)

is withdrawing its controversial diabetes drug from the U.S. market. The

Food and Drug Administration

said that the company had agreed to an FDA request to pull the drug, which had been linked to fatal liver failure.

For analysis of the market's preopen tone and trends, see the Wake-Up Call, published separately.