Goldman Sachs recommended that investors overweight the airline sector. The firm's top picks are

Delta

(DAL) - Get Report

and

Continental

(CAL) - Get Report

. Goldman upgraded

UAL

(UAL) - Get Report

to market outperform from market perform because the company's fundamentals have improved in line with the industry, but the stock price has lagged.

Earnings Reports & Outlooks

Acxiom

(ACXM)

projected earnings of 12 cents to 14 cents a share for the fiscal third quarter with revenue of $220 million to $225 million. Analysts are looking for income of 13 cents.

Entergy

(ETR) - Get Report

expects fourth-quarter earnings to come in 20% above the First Call consensus estimate of 13 cents. That forecast implies income of almost 16 cents a share. The company also reaffirmed that operating earnings for 2002 should be in the range of $3.30 to $3.50 a share.

Hollywood Entertainment

(HLYW)

reported an 11% increase in December same-store sales. The company expects fourth-quarter earnings to meet or exceed the high end of its previously announced estimate of 26 cents to 28 cents a share. The consensus estimate is 27 cents.

Movie Gallery

(MOVI)

forecast fourth-quarter earnings of 27 cents to 32 cents a share, up from its previous guidance of 17 cents to 21 cents. Analysts are calling for income of 20 cents. For 2002, the company expects earnings of 90 cents to $1 a share.

Openwave

(OPWV)

expects a second-quarter loss of 6 cents to 9 cents a share, excluding items, and revenue of $92 million to $97 million. Wall Street is expecting a loss of 11 cents.

TST Recommends

Tiffany

(TIF) - Get Report

expects fourth-quarter earnings to come in at the upper end of the company's previous guidance of 49 cents to 56 cents a share. According to First Call, analysts expect income of 50 cents. The company forecast a mid-to-high single-digit percentage increase in earnings for 2002. Robertson Stephens upgraded the stock to buy from market perform with a $40 price target.

Analyst Actions

ABN Amro reiterated a buy rating on

Brocade

(BRCD)

and raised its price target to a range of $45 to $50 from $40.

Merrill Lynch downgraded the wireless group to underweight because of demand concerns. The firm expects the infrastructure market to decline 5% in 2002 as operators scrutinize their capital spending. According to Merrill,

Ericsson

(ERICY)

is the most vulnerable. The firm is also cautious on the handset market because of weak sales and rising inventories in the fourth quarter.

Nokia

(NOK) - Get Report

could pull back if the company has no new products and sees seasonal softness, Merrill said.

Sanford Bernstein is cautious on

Oracle

(ORCL) - Get Report

, saying the company is investing too much in the low-return applications business and not investing enough in its core database and servers business.

ABN Amro downgraded

Qualcomm

(QCOM) - Get Report

to add from buy, citing a near-term slowdown in wireless subscribers and handset shipments. The firm lowered its price target to $56 from $65 and lowered its fiscal 2002 and 2003 earnings estimates.

Mergers, Acquisitions & Joint Ventures

Alkermes

(ALKS) - Get Report

and

Eli Lilly

(LLY) - Get Report

will move forward with multiple-dose Phase I studies for an inhaled human growth hormone following the successful completion of a single-dose clinical trial.