(Updated from 9:33 a.m. ET)

3M

(MMM) - Get 3M Company Report

warned that second-quarter earnings would come in between $1.10 and $1.14 a share, which is below Wall Street's consensus forecast and the year-ago bottom line.

According to

Thomson Financial/First Call

, analysts expect 3M to earn $1.19 a share in the quarter. The company earned $1.18 in the year-ago period. Currency effects will lower earnings by 7 cents a share, as the strong dollar continues to sap profitability.

The company said that the economic slowdown was chewing into its income, with the notable exception of the company's health care unit. If the economy stays at its current level, 3M estimated that 2001 earnings would come in at the low end of a range between $4.50 and $4.75, lower than the guidance of $4.75 to $5 a share the company had earlier.

For more on what to expect from the market, including a longer look at the week ahead in equities and how the Fourth of July holiday will affect trading, please read

Kristen French's

story, "

The Coming Week: Wall Street Anticipates Quiet, Positive Week."

Earnings Reports & Warnings:

Kinder Morgan

(KMI) - Get Kinder Morgan Inc (KMI) Report

said it will beat expectations for its second quarter and fiscal 2001 and promised that some "significant, accretive" acquisitions could be made in the next month or so. Anaysts, on average, expect the company to make 36 cents a share in the second quarter and $1.82 a share for 2001.

Mergers & Acquisitions:

First Union's

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ongoing struggle to protect its merger with

Wachovia

(WB) - Get Weibo Corp Sponsored ADR Class A Report

continued over the weekend, with First Union sending out more than 700,000 proxy kits to shareholders of both companies. The kits were distributed to sway support in favor of First Union's $14.3 billion bid, which was agreed to by Wachovia, but which has come under fire from

SunTrust

(STI) - Get SunTrust Banks, Inc. Report

, which countered with an unsolicited $14.8 billion bid.

IBM

(IBM) - Get International Business Machines (IBM) Report

and

Fiat's

planned incorporation of their information services units was approved by the

European Commission

. The blue-chip tech company and the Italian carmaker can now fuse their information services operations, including

SAP Italia

,

Proxima

,

Intesa

and

IBM SAP

.

Sara Lee

(SLE)

, the sinful foods company best known for its delectable cheesecake, announced that it would buy

Earthgrains

(EGR)

, the second-largest U.S. bakery, for $40.25 a share in cash. This makes the deal worth $1.7 billion in cash, or $2.8 billion if assumed debt is factored in. The deal values Earthgrains at a 55% premium, based on Friday's closing price of $26.

TMP Worldwide

(TMPW)

TheStreet Recommends

, the parent company of online job-listing site

Monster.com

, agreed on Friday to acquire rival

HotJobs.com

(HOTJ)

in a stock deal valued at $460 million, fusing the two largest players in the online job-search space. According to the terms of the deal, TMP will swap 0.2195 shares for each share of HotJobs. TMP said it will run HotJobs as a stand-alone site. After gaining shareholder and government approval, expects the deal to close in the fourth quarter.

UAL

(UAL) - Get United Airlines Holdings, Inc. Report

, the parent company of

United Airlines

, will be scrapping plans to buy

US Airways

(U) - Get UNITY SOFTWARE, INC. Report

because of regulatory hurdles and a declining economic climate,

The Wall Street Journal

reported. Apparently, United informed US Airways that it would like to talk about terminating the deal before Aug. 1. The deal was first announced in May 2000 and sent the airline industry into a consolidation craze, with

AMR

(AMR)

, the parent of

American Airlines

, buying up

TWA

and several other major carriers considering mergers.

On the Analyst Front:

Disney

(DIS) - Get Walt Disney Company Report

was downgraded to hold from buy at

Prudential Securities

because its shares are fully valued, the competition will stay fierce and few, if any, new reasons to buy its stock are on the horizon. Pru cut its price target to $34 from $36 and reduced its fiscal 2001 and 2002 EPS estimates. Disney reports third-quarter results during the week of Aug. 1.

Federated Department Stores

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was downgraded to hold from buy at Prudential, which also trimmed its fiscal 2001 and 2002 EPS targets, because the department store chain's second-quarter sales weakness could be more than just a one-time thing. The brokerage put in "worse-case scenario" estimates, telling investors that the sliding sales could be part of a continuing trend.

Miscellaneous News:

Procter & Gamble

(PG) - Get Procter & Gamble Company Report

said it was considering the sale of its Comet band cleaner, saying that it didn't fit with the company's strategy. The consumer products giant said it hired

Goldman Sachs

to help find a buyer.

Today's Earnings:

There are no major earnings releases scheduled for today.

In Overnight Activity

The

Nasdaq Stock Market scrapped its after-hours session Friday, but kept the day session open until 5 p.m., resulting in a condensed hour of action that was quite lively. The Nasdaq canceled the rest of the session, which would have run until 8 p.m., because of the technology glitches that stopped trading during the day session for an hour.

For an extended take on late-night action, be sure to take a gander at

The Night Watch.

Sources & Definitions:

All analyst EPS estimates are from Thomson Financial/First Call, unless otherwise noted. All economic forecasts are from

Reuters

, unless otherwise noted. All times are Eastern. After-hours quotes courtesy of Instinet, unless otherwise noted.