Stocks To Watch: Morgan Stanley Profit Falls; PPG To Miss Views

EMC says it will cut 10% of its workforce.
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Morgan Stanley

(MWD)

said its fiscal third-quarter earnings totaled $735 million, or 65 cents a share, beating the consensus estimate by a penny. Profits were way down from a year ago on a decline in investment banking revenue.

"While concern has increased regarding the outlook for the global economy, we continue to believe in the long-term growth opportunities for the firm," the firm said in a statement.

Earnings, Warnings & Reports

ONI Systems

(ONIS)

, an optical network equipment provider, said it expects a third-quarter loss of 17 cents to 21 cents per share, much wider than the 4 cents-a-share loss analysts were expecting. The company also said it no longer expects to break even in the fourth quarter. Analysts were expecting the company to earn a penny a share.

PPG Industries

(PPG) - Get Report

said it expects to earn between 50 cents and 60 cents a share in the third quarter, which is below analysts' projection of 73 cents a share. The company earned 88 cents a share in the same period last year. The maker of paints, glass and coatings also said it didn't expect the global economy to improve in the near term.

Miscellaneous News

Comdisco

(CDO)

said a bankruptcy court extended the period during which the company has the exclusive right to file a plan of reorganization.

Ford

(F) - Get Report

has been ordered to pay $15.4 million in a suit claiming a manufacturing defect in a tire caused brain damage and paralysis to a young girl who was injured in a van accident. The court found Ford responsible for a manufacturing defect in the tire's valve.

Merrill Lynch

said it expects the U.S. economy to fall into recession and says it expects the Federal Reserve to cut interest rates as low as 2% by year end.

RCN

(RCNC)

said its finance unit is offering to buy back up to $1.07 billion of debt. The company said it will pay 19 cents to 36 cents on the dollar for parts of five RCN note issues.

After Thursday's Close

American Business Financial Services

(ABFI)

lowered its earnings guidance for the fiscal year. The company is now expecting income of $2.40 to $2.60 a share, compared with a previous forecast of $2.80 to $3.10 a share.

EMC

(EMC)

said it would cut more than 2,000 jobs, or 10% of its workforce, and probably report a third-quarter loss. Analysts were expecting earnings of a penny a share in the third quarter.

Retailer

Wet Seal

(WTSLA)

said it expects to earn 32 cents a share in the third quarter, matching the consensus estimate.