Updated from 1:18 p.m. EDT

Morgan Stanley Dean Witter


dropped $6.19, or 6.5%, to $89.75, after missing its target. The financial giant this morning posted third-quarter earnings of $1.09 a share, missing the 14-analyst estimate of $1.17, but up from year-ago earnings of 83 cents a share. That's despite an increase of 28% in the firm's third-quarter profits.

The news was a surprise, since fellow brokerage firms

Lehman Brothers



Goldman Sachs

(GS) - Get Report

posted strong earnings results earlier this week. Lehman Brothers shed $4.50 to $141.50, while Goldman Sachs declined $4.75 to $113.25.

Morgan Stanley said its investment banking revenues, which are largely generated from fees for helping companies sell stock and advising on mergers, slid 3% to $1.2 billion.

The air's been knocked out of another tire-maker.

Goodyear Tire

(GT) - Get Report

said it will probably break even or report a small loss in the third and fourth quarters because of escalating raw material and energy costs, the decline of the euro, weak pricing conditions around the world and lower-than-expected sales in North America and Europe.

Still, the company said its tire business is realizing some benefits from the


recall, as consumers use Goodyear tires as replacements.

First Call/Thomson Financial's

nine-analyst estimate put the company's earnings at 29 cents a share for the third quarter and 35 cents a share in the fourth quarter.

Goodyear fell $3 to $18.

Mergers, acquisitions and joint ventures

Ford Motor

(F) - Get Report

proposed to reacquire the 18.5% of



outstanding stock that it doesn't already own. Through the proposed transaction, Hertz shareholders would receive $30 for each share of Class A common stock. The price represents a premium of about 24% over Hertz's closing price yesterday of $24.25.

In 1997, Ford spun off Hertz in an IPO in an effort to take advantage of investor interest in the car-rental industry. The deal is subject to the approval of Hertz's board of directors.

Hertz popped $7.38, or 30.4%, to $31.63, while Ford missed $1.06 to $24.

Adaptive Broadband

(ADAP) - Get Report

gained 94 cents, or 4.1%, to $23.63 after it signed a five-year, $100 million contract with Florida-based

Fuzion Wireless Communications

to buy wireless broadband equipment.

Adaptive posted $28.7 million in revenue last year, and its stock recently traded at $26.75, up $4.06, or 17.9%, on Nasdaq, where it was one of the top percentage-gainers.

The deal, which doubles the companies' commitment to each other, is expected to aid Fuzion's expansion internationally, especially in Latin America.

Dutch chip-maker

ASM International


slipped $1.94, or 8.8%, to $20.06 after it said it has received an order worth less than $10 million for multiple epitaxial reactors -- used to put silicon layers on chip wafers -- from

Mitsubishi Silicon America


The home-entertainment unit of

Fox Entertainment

(FOX) - Get Report

is buying a stake in New York-based


, which agreed to buy and lease Fox videos and DVDs directly from the studio. Fox lowered 13 cents to $27.88.

Kozmo, which recently abandoned plans for an IPO and laid off a number of employees, did not release details of the deal, but said it would also promote Fox films to its 300,000 customers. Separately, Kozmo said it would buy videos and DVDs from


and promote the production company's films on its Web site.

The Fox deal comes in the wake of rival


decision to end its unprofitable movie-rental service in New York.

Merger talks between

UtiliCorp United



St. Joseph Light & Power


are said to be on track, despite the "very serious" implications of a June 7 fire that damaged St. Joseph Light's Lake Road power plant.

UtiliCorp said it asked St. Joseph Light to provide a detailed explanation about the incident, which could affect their merger agreement, but said it remains optimistic about getting a satisfactory response.

The companies announced the merger plan on March 4, 1999.

UtiliCorp United stayed flat at $25, while St. Joseph Light & Power was off $2.50, or 11.4%, to $19.44.

Back to top

Earnings/revenue reports and previews

Apogee Enterprises

(APOG) - Get Report

, which specializes in glass technology, advanced 27 cents to $5.42 after it reported a drop in second-quarter earnings to 15 cents a share from the year-ago figure of 19 cents a share. The single-analyst estimate on

First Call/Thomson Financial

was 6 cents a share.

Furniture manufacturer

Chromocraft Revington

(CRC) - Get Report

slid $1.56, or 13.7%, to $9.81 after it announced it is cutting third-quarter earnings estimates to between 27 cents and 30 cents a share, citing a onetime charge of $850,000, which knocks about 5 cents a share off earnings. The reason? "Doubtful accounts" receivable from a retailer that filed for bankruptcy. The current three-broker estimate calls for 37 cents a share.


(CO) - Get Report

, an engineering-services provider, fell 56 cents, or 13.2%, to $3.69 after it announced that it expects second-quarter profits of 5 cents to 10 cents a share, lower than the 27 cents a share reported last year. The current one-analyst estimate calls for 15 cents a share.

Consumer products manufacturer


(DL) - Get Report

, which has issued a stream of profit warnings already this year, moved up 31 cents to $10.88 after it said that it expects third-quarter earnings of 3 cents to 5 cents a share, sharply below the nine-analyst forecast of 14 cents.

Citing higher fuel costs,


(KEX) - Get Report

decreased $2, or 8.8%, to $20.69 after saying it expects third-quarter EPS to fall between 36 cents and 38 cents a share, about 10% below the five-analyst estimate of 41 cents a share. Last year, the barge operating company earned 34 cents a share in the third quarter.

Mueller Industries

(MLI) - Get Report

dropped $6.94, or 23.9%, to $22.06 after it said that higher raw-material costs and rigorous competition have forced it to cut its third-quarter EPS estimate. The company, which makes products for the auto, plumbing and refrigeration industries, expects to earn 50 cents to 55 cents a share in its latest quarter, well below a three-analyst estimate of 78 cents and under year-ago earnings of 66 cents.


(SNA) - Get Report

staggered $4.38, or 16.1%, to $22.81 after it said weakness in the euro and the vehicle-repair industry will hurt its third-quarter earnings, which the company estimates to be between 45 cents and 50 cents a share, way down from the eight-analyst estimate of 69 cents a share.

The company also said it expects current interest and currency rates to continue, and therefore expects fourth-quarter income of 70 cents to 80 cents a share, below the seven-analyst estimate of 87 cents a share.

The hand- and power-tools maker also said full-year earnings will be between $2.50 and $2.60 a share, and about $3 a share for next fiscal year.

Texas Industries


declined $1.19 to $28.75 after it reported an increase in its first-quarter EPS to $1.13 a share, compared to year-ago earnings of 75 cents a share. Its first-quarter earnings topped the four-analyst estimate of $1.07 a share.

The steel and cement supplier also reported net income for the quarter of $25.7 million, up 57% from last year's quarterly income of $16.4 million.

After Wednesday's Close

Bed Bath & Beyond

(BBBY) - Get Report

rose $3.94, or 18.8%, to $24.88 after it posted second-quarter earnings of 15 cents a share, a penny better than the 20-analyst estimate and up from the year-ago 12 cents. The company said it plans to open 27 new superstores by the end of the fiscal year.

Electronics business services company



was off 88 cents, or 20%, to $3.50 after announcing that it would post a third-quarter loss, with revenues slipping 15% to 20% below second-quarter levels. Concero attributed the shortfall in part to bad debt reserves.

Online marketing firm



gained 31 cents to $8.38 after it posted a fourth-quarter cash loss of 14 cents a share, narrower than the 10-analyst estimate of a 28-cent loss. Year-ago results were not available; the company said they were, anyway, "irrelevant due to the change in the company's capital structure" on completion of its IPO, which was in July 1999.

Engage also said it plans to cut about 13% of its work force and record a charge to consolidate its business in a move to accelerate profitability.

Great Lakes Chemical


lowered 44 cents to $28.44. The company warned it sees third-quarter earnings below analyst expectations due to weather conditions and raw-material cost increases. The company sees earnings in the range of 48 cents to 51 cents a share, below the 10-analyst estimate of 62 cents. Full-year 2000 EPS are expected to be in the range of $2.25 to $2.35 a share, below the 11-analyst consensus estimate of $2.51.

Herman Miller

(MLHR) - Get Report

moved down 25 cents to $28.44. The company posted first-quarter earnings of 46 cents, below the 10-analyst estimate of 48 cents and up from the year-ago 43 cents.



was off $4.50, or 16%, to $23.56 after it said it expects third-quarter earnings to come in 40% lower than the consensus estimate of 35 cents a share. Ionics said losses from the company's Malaysian and Australian subsidiaries were to blame for about a third of the shortfall. The remainder, according to the company, is due to tight margins on capital equipment, higher fuel and labor and distribution costs in the U.S., among other reasons cited.

Lockheed Martin

(LMT) - Get Report

climbed $2.19, or 7.6%, to $30.94. Lockheed Martin said it expects its 2000 cash flow to be at least $1.5 billion, up from a previous estimate of $900 million. Lockheed also estimates it will generate at least $2.3 billion in free cash flow during 2000 and 2001 combined, compared with a previous estimate of $1.7 billion.

Renal Care Group


boosted $3.69, or 22.9%, to $19.81. Renal Care said its 2000 earnings will fall short of expectations, citing costs from the recent death of a patient during treatment. The company, which provides care and dialysis service to patients with kidney disease, said it expects to earn 33 cents in the third quarter and about 34 cents in the fourth quarter, and 2000 earnings of $1.32 a share. Analysts were expecting 34 cents in the third quarter, 36 cents in the fourth quarter and $1.35 for the year.

Back to top

Analyst actions

Credit Suisse First Boston

cut its rating on


(EBAY) - Get Report

to buy from strong buy.

CSFB analyst Heath P. Terry said the 17% rise in eBay's stock following the announcement of its positive revenue forecasts of $3 billion in 2005 was overdone and that the stock's upside is limited. The research note also said revenue objectives may underestimate potential growth at


, an online trader the company bought in July, as well as opportunities in international markets.

Terry set a 12 month price target of $90, a 17.6% premium over the stock's current price. Also, he set its 2000 EPS projection at 15 cents a share and its 2001 EPS projection at 32 cents. eBay lost $5.38, or 7%, to $71.19.


American Water Works

(AWK) - Get Report

: UP to attractive from unrated at


.Shares fell 19 cents to $26.50.

Corn Products International


: UP to buy from hold at CSFB. Shares rose $2.06, or 10.4%, to $21.81.

Federated Investors

(FII) - Get Report

: UP to outperform from neutral at

Morgan Stanley Dean Witter

. Federated rose $1.44, or 6.1%, to $24.94.


(LEN) - Get Report

: UP to buy from market perform at

Donaldson Lufkin & Jenrette

. The stock rose 38 cents to $27.59.


(OMC) - Get Report

: UP to buy from attractive at

Bear Stearns

. The stock rose $2.06 to $77.25.

Quest Software


: NEW near-term accumulate and long-term buy at

Merrill Lynch

; 12- to 18-month price target: $72. The stock rose 19 cents to $59.94.

Western Wireless


: UP to buy from attractive at Bear Stearns. Shares fell 2, or 5.3%, to $35.88.


Renal Care Group


: DOWN to outperform from strong buy at Morgan Stanley. Shares popped $3.69, or 22.9%, to $19.81 despite the news.


(TER) - Get Report

: price target DOWN to $65 from $94 at

Prudential Securities

. The stock lost $12.21, or 24.8%, to $37.

U.S. Interactive


: DOWN to outperform from buy at

Lehman Brothers

; and price target DOWN to $7 a share from $15 Shares fell 28 cents, or 10.6%, to $2.38.



(SE) - Get Report

: NEW market outperformer at

Goldman Sachs

. Shares edged up 13 cents to $12.38.

American Standard


: NEW market perform at Goldman Sachs. The stock slipped 56 cents to $41.63.

Global Crossing


: NEW strong buy at

Deutsche Banc Alex. Brown

. Global Crossing dropped $1.44 to $28.



: NEW buy at Lehman Brothers; price target: $60. Intersil lost 13 cents to $49.75.

Veritas Software

(VRTS) - Get Report

: NEW buy at Lehman Brothers. The stock slipped 81 cents to $136.13.

Group Moves

Salomon Smith Barney

started coverage of seven telecommunications equipment-makers:

  • Corning (GLW) - Get Report: NEW buy; 12-month price target: $490. Shares dropped $22.50 to $293.
  • JDS Uniphase (JDSU) : NEW buy; price target: $155. Shares fell $3.63 to $103.50.
  • SDL (SDLI) : NEW outperform; price target: $410. SDL shed $13 to $330.25.
  • Oni Systems (ONIS) : NEW buy; price target: $155 Oni Systems fell $4.56 to $93.94.
  • Ciena (CIEN) - Get Report: NEW buy; price target: $175. Ciena dropped $2.50 to $114.25
  • Sycamore Networks (SCMR) : NEW buy; price target: $165. Shares rose $7.91, or 7.5%, to $113.41.

The steel industry got a double dose of bad news today, with both

ABN Amro


J.P. Morgan

cutting ratings in the industry. ABN Amro dropped four U.S. steel companies:

  • National Steel (NS) - Get Report: DOWN to hold from buy. Shares slipped 19 cents to $3.
  • Nucor (NUE) - Get Report: DOWN to outperform from buy. The stock slipped 94 cents to $30.81.
  • Steel Dynamics (STLD) - Get Report: DOWN to outperform from buy. Shares rose 19 cents to $10.19.
  • USX-U.S. Steel Group (X) - Get Report: DOWN to hold from buy. Shares fell 25 cents to $15.88.

J.P. Morgan cut its rating on four steel producers to market performers from buys:

  • Bethlehem Steel (BS) . The stock lost 31 cents, or 8.9%, to $3.19.
  • Ispat (IST) . Ispat fell 19 cents to $5.06.
  • LTV (LTV) . LTV rose 13 cents to $1.63.
  • WHX (WHX) . WHX fell 25 cents to $2.63.

Back to top

Offerings and stock actions



popped $1.88 to $75 after it announced a 2-for-1 stock split.

After Wednesday's Close

Bristol-Myers Squibb

(BMY) - Get Report

rose 1.5% to $56.69 after it said that its board approved a $2 billion increase in the company's buyback program.

TTM Technology

(TTMI) - Get Report

priced a 7.5 million-share IPO at $16 a share, above the $13 to $15 range. Shares tacked on $4.94, or 30.9%, to $20.94.

Back to top


As one of its final steps toward improving competitiveness,


(KEY) - Get Report

announced that it will cut its work force by 2,300 within 15 months and will buy back $25 million worth of stock. The stock slipped 13 cents to $23.19.

Although the banking company expects annual savings of $360 million from the move, it will take charges totaling $198 million in the third quarter, mainly to cover severance pay and the cost of closing facilities.

Key said it would spend $60 million of the savings to help enhance its competitive position, fuel higher growth and improve customer service. The company expects these changes to result in a pretax earnings improvement of 43 cents a share by 2002. That's well above the improvement of 24 cents expected last November, when the company began the first phase of its revamping.

After Wednesday's Close


(IDA) - Get Report

rose $1.31 to $44.19 after announcing that it had retained investment banker

Goldman Sachs

to advise on financial alternatives for its fuel-cell business, IdaTech. IdaTech is developing a commercial fuel-cell product line for small-scale electric power generation for residential, commercial and light industrial applications.

Richard Gottlieb, CEO of

Lee Enterprises

(LEE) - Get Report

, announced that he will step down from that position in January. He will be succeeded by Mary Junck, president and COO. The stock fell 44 cents to $26.81.

Back to top

By the numbers

The data on NYSE and Nasdaq percentage winners and losers are filtered to exclude stocks whose previous day's volume was less than 25,000 shares; whose last price was less than 5; and whose net change was less than 1/2.

Dow point gain and loss data are based on New York closing prices and do not reflect late composite trading.

Back to top

Diane Hess,

Yi-Ping Ho,

Eileen Kinsella and

Betsy Riley contributed to this column.