Updated from 3:05 p.m. EDT

The

Fed has spoken, and interest rates have gotten immunity this time around.

Although the Fed left interest rates unchanged at 6.5%, it warned that inflation was still a risk. The

Federal Open Market Committee meets again Oct. 3, but said it wouldn't make any market-influencing decisions until after the presidential elections. The committee will have its first post-election meeting Nov. 15.

TheStreet.com

covered the

interest-rate decision in an earlier story.

Beleaguered health Web site

drkoop.com

(KOOP)

, which warned yesterday that it was out of cash, announced today that it has received $20 million in equity financing and has a new management team and reconfigured board.

According to a story posted in

The Wall Street Journal

online last night, the company would have been forced to close unless it got a $27.5 million cash infusion from investors. In a

Securities and Exchange Commission

filing yesterday, the company said it had "largely expended" the $2 million in cash it had as of June 30. drkoop.com said it needs "significant additional financing in the very near future to fund operations," the

Journal

reported. Also yesterday, the company posted second-quarter losses of $1.18 a share, compared with $1.28 a year ago.

Medical technology company

Medtronic

(MDT) - Get Report

reported first-quarter earnings of 24 cents a share, which includes a charge of 1 cent a share for a legal settlement. The 30-analyst

First Call/Thomson Financial

estimate called for 25 cents, while the year-ago result was 21 cents. Medtronic said it backs the consensus estimate for the second quarter and full year. The 29-analyst estimate for the second-quarter is 26 cents and the 32-analyst estimate for the year is $1.09.

Mercator Software

(MCTR)

, which last week notified the

Securities and Exchange Commission

that it would file its official second-quarter statement late, has revised its first-quarter financial statement. As restated, the company lost 41 cents a share, compared with the originally reported 35-cent loss.

In Mercator's amended SEC filing, the company acknowledges:

Our audit committee became aware of questions concerning the accounting for certain expense items. The audit committee, with the assistance of our auditors, initiated a review of these items and performed certain additional procedures. As a result of these procedures, it was determined that certain expenses were not properly recorded in the first and second quarters of 2000 and, accordingly, it was determined that the financial statements for the quarter ending March 31, 2000, should be restated.

Shares of Mercator, which took a 44% dive after last week's announcement, finished up 15/16, or 5.9%, to 16 13/16 yesterday.

Mergers, acquisitions and joint ventures

Computer Sciences

(CSC)

said it won a five-year, $352 million

Air Force

contract.

Internet hosting and management services company

Exodus Communications

(EXDS)

said it agreed to resell storage systems, software and services from

EMC

(EMC)

, to its e-business customers.

Ciba Specialty Chemicals Holding

(CSB) - Get Report

said its 49.3% stake in

Hexcel

(HXL) - Get Report

has become a "nonstrategic asset" and that it may sell some or all of its investment in the company "if an acceptable price could be obtained," in a filing with the Securities and Exchange Commission.

IBM

(IBM) - Get Report

and

China Great Wall Computer Group

are launching a $25 million plant in Beijing to make circuit boards for

Nokia

(NOK) - Get Report

mobile phones.

Newell Rubbermaid

(NWL) - Get Report

announced that it will acquire

Gillette's

(G) - Get Report

stationery products business. According to the deal, Rubbermaid will buy a substantial portion of its assets and some of the liabilities. The price was not disclosed.

Pan Pacific Retail

(PNP)

said it would buy

Western Properties

(WIR)

for $440 million.

Premdor

(PI) - Get Report

said it hopes to reach a deal around the end of the month to buy

Masonite

from

International Paper

(IP) - Get Report

.

Teletech

(TTEC) - Get Report

said it would acquire

Newgen Results

(NWGN)

in a $200 million stock deal that values Newgen at $18 a share. Teletech said the deal would close in the fourth quarter and should boost earnings immediately.

After Monday's Close

Forest products company

Crown Pacific

(CRO)

said it's no longer pursuing the sale of the company due to current market conditions. Crown Pacific is looking into other options, including the sale of selected nonstrategic assets and the conversion of the company to a real estate investment trust, or REIT.

The

Federal Trade Commission

has made a second request with regard to

Tyco International's

(TYC)

plan to acquire

Mallinckrodt

(MKG)

, for information from the companies. The FTC's latest request concerns endotracheal tube sales, which account for less than $20 million of Tyco's annual worldwide sales. The companies are working with the FTC and hope that the transaction will be closed by the end of September, as originally planned.

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Earnings/revenue reports and previews

C&D Technologies

(CHP)

posted second-quarter earnings of 49 cents a share, beating the two-analyst estimate by a nickel and up from year-ago earnings of 27 cents a share.

Thanks to stellar sales of its arthritis drug

Vioxx

, drug manufacturer

Merck

(MRK) - Get Report

announced that it was comfortable with Wall Street forecasts for 2000 earnings per share of $2.82 to $2.87. That result represents a 15%-17% growth over 1999 results.

Smithfield Foods

(SFD)

posted first-quarter earnings of 81 cents a share, better than the four-analyst estimate of 77 cents and the year-ago 15 cents.

Spartech

(SEH)

posted third-quarter earnings of 50 cents a share, beating the six-analyst estimate of 46-cent earnings and above the year-ago 41-cent result.

The Sports Authority

(TSA)

posted second-quarter earnings of 21 cents a share, beating the two-analyst estimate of 19 cents and the year-ago 12 cents.

The

European Commission

sent a statement of objections to

EMI Group

concerning its proposed joint venture with

Time Warner's

(TWX)

music operations. In June, the commission launched a four-month investigation into the venture. The list of objections is a typical second step in the review.

TXU

(TXU)

said it sees 2000 EPS up over 7% after a $600 million stock buyback.

After Monday's Close

Nvidia

(NVDA) - Get Report

posted second-quarter earnings of 28 cents a share, ahead of the three-analyst estimate of 26 cents and the year-ago 9 cents.

Thomas & Betts

(TNB)

reported a second-quarter loss of 56 cents a share, which includes items. Excluding the items, the company lost 32 cents. The four-analyst estimate was for a profit of 52 cents, while the year-ago earnings were 75 cents.

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Analyst actions

Salomon Smith Barney

lifted its rating on

R.J. Reynolds

(RJR)

to outperform from neutral and set its price target at 50.

Prudential

cut

MiniMed

(MNMD)

: to accumulate from strong buy but raised its price target to 89 from 73. Prudential said the remaining upside represents only a 13% potential price appreciation.

Upgrades

Goldman Sachs

(GS) - Get Report

: third -quarter EPS estimate UP to $1.46 from $1.35 and fourth-quarter EPS estimate UP to $1.61 from $1.49 at

Deutsche Banc Alex. Brown

. 2000 EPS estimate up to $6.30 from $6.08.

International Rectifier

(IRF)

: price target UP to 80 from 65 at

Banc of America

.

Ralston Purina

(RAL)

: price target UP to 28 from 25 at Salomon Smith Barney.

Transocean Sedco Forex

(RIG) - Get Report

: UP to buy from outperform at

Lehman Brothers

.

Downgrades

Clearnet

(CLNT)

: DOWN to neutral from strong buy at

Morgan Stanley Dean Witter

.

Initiations

Applied Molecular

(AMEV)

: NEW strong buy at

CIBC World Markets

; price target: 43; NEW buy at

PaineWebber

; price target: 40. .

Art Technology

(ARTG)

: NEW buy at Salomon Smith Barney; price target: 108.

Avici Systems

(AVCI)

: NEW neutral at Lehman Brothers; NEW buy at

UBS Warburg

; price target: 200; NEW buy at

J.P. Morgan

; price target: 200.

A number of firms initiated coverage on

Corvis

(CORV) - Get Report

.

Credit Suisse First Boston

started the stock at buy with a price target of 125, while CIBC World Markets rated the stock a buy with an 18-month target of 125. Banc of America started coverage with a buy rating and a target of 150, and

Chase H&Q

started the stock as a buy.

Discovery Partners

(DPII)

: NEW outperform at Lehman Brothers; price target: 27.

Evoke Communications

(EVOK) - Get Report

: NEW buy at

Thomas Weisel

and NEW strong buy at

CIBC World Markets

; price target: 18.

Genencor

(GCOR)

: NEW accumulate at

Merrill Lynch

; price target: 26; and NEW buy at Salomon: price target: 31.

Lexent

(LXNT)

: NEW buy at Chase H&Q.

Primedia

(PRM)

: NEW buy at

Donaldson Lufkin & Jenrette

. 12-18 month price target: 25.

ProLogis Trust

(PLD) - Get Report

: NEW buy at Donaldson Lufkin & Jenrette.

Saba Software

(SABA)

: NEW buy at

W.R. Hambrecht

; price target: 42.

Trimeris

(TRMS)

: NEW strong buy at Prudential.

Webex Communications

(WEBX)

: NEW strong buy at Deutsche Banc .

Group Moves

CSFB started

Proxicom

(PXCM)

at buy with a price target of 40 and started

Scient

(SCNT)

with a hold rating.

Goldman Sachs

adjusted ratings for two airline companies:

  • AMR (AMR) : 2000 earnings estimate UP to $4.80 from $4.70.
  • US Airways (U) - Get Report: 2000 earnings estimate DOWN to a loss of 10 cents from a profit of 40 cents. 2001 earnings estimate: DOWN to $2.00 from $2.30.

Bear Stearns

initiated coverage of six Internet commerce companies:

  • Ariba (ARBA) : NEW buy. 12-month price target: 180.
  • Clarus (CLRS) : NEW buy. 12-month price target: 130.
  • Commerce One (CMRC) : NEW buy. 12-month price target: 75.
  • Freemarkets (FMKT) : INITIATED buy. 12-month price target: 90.
  • Global Sources (GSOL) : INITIATED buy. 12-month price target: 90.
  • Opus360 (OPUS) : INITIATED buy. 12-month price target: 7.

First Union

lifted price targets on four utility companies:

  • Duke Energy (DUK) - Get Report price target UP to 81 from 70 and 2000 EPS view up to $4.05 from $4. 2001 EPS view up to $4.50 from $4.40
  • Dominion Resources (D) - Get Report: price target UP to 62 from 55.
  • Constellation Energy (CEG) ; price target: UP to 45 from 37.
  • PP&L Resources (PPL) - Get Report; price target: UP to 38 from 32.

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Miscellany

Bank One

(ONE) - Get Report

said its President, Verne Istock, will retire Sept. 30. Istock has been with Bank One and its predecessors for 37 years.

Nike

(NKE) - Get Report

plans to form a new unit focused on women's footwear and clothing in a move that will eventually generate a third of the company's total sales from that area,

The Wall Street Journal

reported.

Pharmaceutical company

Viropharma

(VPHM)

named Michel De Rosen as its chief executive.

After Monday's Close

The

Center for Auto Safety

has filed a federal lawsuit seeking to force

Ford

(F) - Get Report

and Japan's

Bridgestone/Firestone

to replace tires potentially linked to 62 traffic deaths. According to the consumer group, the number of tires covered in its suit is at least twice as large as the 6.5 million that Bridgestone/Firestone has already agreed to recall.

According to published reports, Ford ordered a two-week shutdown of three truck assembly plants in order to free up more replacement tires. The move comes as sales of Ford Explorers are slipping.

Merrill Lynch reduced Ford's 2000 EPS estimate by 3 cents.

Electronics company

Molex

(MOLX)

announced the promotion of J. Joseph King to vice chairman and chief executive.

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