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Internet bellwether

Yahoo!

(YHOO)

reported first-quarter pro forma earnings of 10 cents a share, a penny better than the 24-analyst estimate and up from the year-ago pro forma 3 cents a share. Yahoo! said first-quarter sales more than doubled, while earnings more than tripled and traffic to its Web site increased sharply.

The company also said it named Susan Decker as its new CFO, replacing Gary Valenzuela, who will retire in July. Decker was formerly global head of research at

Donaldson Lufkin & Jenrette

(DLJ)

.

For more on this

story, see the coverage from

TheStreet.com/NYTimes.com's

joint newsroom.

Toyota

(TM) - Get Toyota Motor Corp. Report

and

General Motors

TheStreet Recommends

(GM) - Get General Motors Company Report

are jointly developing an electric-gasoline hybrid vehicle and are pondering building a plant in North America to make the car,

The Wall Street Journal

reported, citing a Toyota exec involved in the talks.

Mergers, acquisitions and joint ventures

Home improvement retailer

Lowe's

(LOW) - Get Lowe's Companies, Inc. Report

and

NationsRent

(NRI)

, a construction equipment rental company, set a strategic partnership to operate NationsRent stores within select Lowe's stores.

Peregrine Systems

(PRGN)

, a provider of infrastructure management software, said it signed a definitive pact to acquire

Harbinger

(HRBC)

in a stock deal valued at $2.1 billion. Harbinger provides business-to-business e-commerce delivery solutions. The deal is structured as a stock swap at a ratio of 0.75 share of Peregrine common stock for each share of Harbinger.

Offerings and stock actions

Deutsche Banc Alex. Brown

priced a 5.1 million-share IPO for

i3 Mobile

(IIIM)

at the top of its $14-to-$16 price range, at $16 a share.

Earnings/revenue reports and previews

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

Gap

(GPS) - Get Gap, Inc. Report

said it suffered an 11% drop in March

same-store sales, a steep decline from the year-ago report of a 21% increase. The clothing retailer blamed the disappointing results on "meaningful lower markdowns." The company also said that John Wilson has stepped down from his role as COO. Gap said it would eliminate the position as a part of management restructuring.

Jupiter Communications

(JPTR)

, an Internet research firm, expects to post first-quarter revenue of $16.5 million, and it anticipates reporting break-even

EBITDA for the first quarter.

J.C. Penney

(JCP) - Get J. C. Penney Company, Inc. Report

posted a 9.4% drop in March same-store sales.

Kmart

(KM)

said March same-store sales declined by 1.2% because of the late Easter holiday.

Pier 1 Imports

(PIR) - Get n.a. Report

posted fourth-quarter earnings of 34 cents a share, beating the 15-analyst estimate of 31 cents a share and up from the year-ago 27 cents. The home furnishings retailer said that March same-store sales increased 12.4%.

Sodexho Marriot

(SDH)

reported second-quarter earnings of 23 cents a share, a penny better than both the three-analyst estimate and the year-ago report.

Talbots

(TLB)

reported a 17.9% increase in March same-store sales. The clothing retailer said it expects to post first-quarter earnings between 87 cents and 90 cents a share, which would beat the 13-analyst estimate of 80 cents a share.

Tellabs

(TLAB)

warned investors that it would post first-quarter earnings between 25 cents to 27 cents a share, missing the 27-analyst estimate of 30 cents a share. The telecom equipment company attributed the drop to lower gross-profit margins.

Wal-Mart's

(WMT) - Get Walmart Inc. Report

March same-store sales rose 3.6%.

Miscellany

The

Federal Aviation Administration

found that

Boeing

(BA) - Get Boeing Company Report

needs to toughen up quality controls over its suppliers,

The Wall Street Journal

reported. Boeing said it would comply.

Lockheed Martin

(LMT) - Get Lockheed Martin Corporation Report

has been charged by the

State Department

with violating arms export laws, according to numerous published reports.

NorthPoint Communications

(NPNT)

, a broadband services provider, named Michael P. Glinsky CFO, to succeed Henry "Hank" Huff, who is taking an early retirement. Glinsky recently was CFO of Baby Bell

U S West

(USW)

.

The Heard on the Street column in

The Wall Street Journal

today reports that some investors have resisted buying beaten-down technology stocks. Despite the shrunken tech stock valuation, many traders feel that prices haven't fallen low enough to tempt them to buy more.

Over the past six months, Prince Alwaleed bin Talal, a Saudi Arabian billionaire, has invested $1 billion in tech stocks,

Reuters

reported. The news agency said that the prince, in a statement, declared he had invested $400 million via a family trust in shares of

America Online

(AOL)

, raising the value of his investment in the online giant to $1.05 billion. The prince said he also has invested $400 million in computer maker

Compaq

(CPQ)

and $100 million each in

Eastman Kodak

(EK)

and

Xerox

(XRX) - Get Xerox Holdings Corporation Report

,

Reuters

reported.

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