(Updated from 8:36 a.m. ET)

Technology earnings continue to grab the headlines, with





( BF) taking hits in extended-hours trading after warning about slowing growth. German chemical giant


( BF) also warned, pressuring overseas stocks.

Earnings Reports & Warnings:

  • American Tower (AMT) - Get Report warned of second-quarter loss of 52 cents to 58 cents a share, with full fiscal-year loss between $1.77 and $2.03 a share. Analysts expected a 41-cent loss in the second quarter and a loss of $1.56 for the fiscal year.
  • Avery Dennison (AVY) - Get Report warned second-quarter EPS would be 60 cents to 64 cents vs. analysts' 70 cents. In the year-ago quarter Avery had EPS of 73 cents.
  • BASF warned second-quarter operating income would be flat, a reversal from earlier company predictions that the quarter would show improvement. BASF said it will reduce capital expenditures by 20% and shutter 10 sites and 14 plants to curb capacity.
  • Carnival (CCL) - Get Report reported second-quarter EPS of 32 cents vs. consensus estimate of 30 cents.
  • Countrywide Credit Industries (CCR) - Get Report reported first-quarter EPS of $1 a share, beating estimate of 98 cents, and up from year-ago 72 cents.
  • Micrel (MCRL) said second-quarter EPS would be breakeven to slightly positive, missing analysts' estimate of 5 cents. Second-quarter revenue will be down 31% to 34% from the first quarter.
  • Micron Electronics( MUEI) posted third-quarter loss from continuing operations of 9 cents a share, matching year-ago bottom line. Analysts expected loss of 10 cents. Micron plans to exit the consumer dial-up business in an effort to improve profit margins.
  • Millipore (MIL) warned second-quarter EPS would be 25 cents to 35 cents, lower than analysts' 54 cents. Second-quarter microelectronics revenue will be 25% to 35% lower than first-quarter revenue.
  • Morgan Stanley Dean Witter( MWD) posted second-quarter EPS of 82 cents a share, beating estimate of 79 cents, and down from year-ago $1.26.
  • PPL (PPL) - Get Report warned second-quarter EPS could miss analysts' expectations of 77 cents. Fiscal 2001 and 2002 EPS should meet expectations, however.
  • Riverstone Networks( RSTN) announced first-quarter pro forma loss of 3 cents vs. year-ago 13-cent loss. Analysts expected 5-cent loss.
  • Transmeta( TMTA) warned second-quarter revenue would fall 40% to 45% from first-quarter revenue of $18.6 million. Slowing shipments to Japan were blamed for the shortfall.

Mergers & Acquisitions:

The board of

Cabot Oil & Gas

(COG) - Get Report

approved the acquisition of


, parent of

Cody Energy

, in a deal it valued at $230 million in cash and stock.

Northrop Grumman

(NOC) - Get Report

extended its tender offer for all the outstanding shares of

Newport News Shipbuilding


until July 5. As of yesterday, 861,000 Newport shares had been tendered.

On the Analyst Front:

American Express

(AXP) - Get Report

has its 2001 EPS estimates trimmed to $2.05 from $2.10 by

Goldman Sachs

, moving the estimate in line with Wall Street's consensus. Goldman kept the company on its U.S. recommended for purchase list.

Conexant Systems

(CNXT) - Get Report


Linear Technology



LSI Logic

(LSI) - Get Report




had their 2001 EPS cut by

Bear Stearns

, which said third-quarter earnings could be worse than the second quarter.


( PKTR),

Network Peripherals



NMS Communications

( NMSS) and

MCK Communications


were dropped from coverage by

Prudential Securities



(UAL) - Get Report

, parent company of

United Air Lines

, had its second-quarter estimates slashed to a loss of $4.50 a share by

ABN Amro

, which previously called for a loss of $1.93 a share. Fiscal 2001 targets were cut to a loss of $10.58 a share vs. the previous estimate of a $7.60 loss. Analysts expect the company to lose $4.14 a share in the second quarter and $9.92 a share for the fiscal year.

Miscellaneous News:

  • Ball (BLL) - Get Report will close Chinese metal can operations and reduce aluminum can manufacturing, taking a charge of $185 million in the second quarter.
  • Boeing (BA) - Get Report signed a deal with KLM Royal Dutch Airlines( KLM) to provide spare parts and maintenance services.
  • Concord EFS( CEFT) priced an offering of 22.53 million shares at $49.50 a share.
  • Heidrick & Struggles (HSII) - Get Report will lay off 300 employees, or 13% of its workforce, resulting in one-time charge of $9 million to $10 million. Most of the charge will be in the second quarter.
  • Knight Trading (NITE) said that John Hewitt, co-head of global equities and president of Knight Securities, and David Shpilberg, operating chief and chief technology officer, will be leaving the company, The company also announced it might cut 6% of its workforce.
  • LSI Logic (LSI) - Get Report will be laying off 225 employees, or 3% of its workforce, as part of a cost-cutting measure.

Today's Earnings:

  • Bed Bath & Beyond (BBBY) - Get Report first-quarter EPS expected at 10 cents vs. year-ago 8 cents. After the bell.
  • Cognos( COGN) first-quarter expected at 3-cent per share loss vs. year-ago 13-cent profit. No time given.
  • Darden Restaurants (DRI) - Get Report fourth-quarter EPS expected at 48 cents vs. year-ago 43 cents. After the bell.
  • Manugistics (MANU) - Get Report first-quarter EPS expected at 3 cents vs. year-ago 2-cent loss. After the bell. TheStreet.com'sJoe Bousquin recently wrote about the company in a story called " Manugistics May Be a Better Prophet Than Oracle."
  • Micron Technology (MU) - Get Report third-quarter expected at 15-cent per share loss vs. year-ago 47-cent profit. After the bell.
  • Research in Motion( RIMM) first-quarter EPS expected at 5 cents vs. year-ago break-even. After the bell.
  • Tektronix( TEK) fourth-quarter EPS expected at 34 cents vs. year-ago 32 cents. After the bell.
  • Tibco Software (TIBX) second-quarter EPS expected at 4 cents vs. year-ago 4 cents. No time given.

Doug Kass' Required Reading:

  • A piece from Tony Crescenzi, CEO of BondTalk.com and RealMoney.com columnist, called " Pervasive Pessimism In Media Coverage Of Tech Is Good News "
  • A column from The Washington Post's John M. Berry called " Fed Wonders: Where's the Rebound? "

On the Economic Lookout:


Forecasts are from


. Times are Eastern. For a longer-term economic calendar and more, see


Economic Databank.)

  • 8:30 a.m.: International Trade for April. Source: Commerce Department. Forecast: -$30.85B. Previous: -$31.17B.
  • 8:30 a.m.: Initial Jobless Claims for the week ended June 18. Source: Labor Department. Forecast: 423,000. Previous: 428,000. Four-week average: Forecast: n.a. Previous: 428,000.
  • 10 a.m.: Philadelphia Fed Index for May. Source: Philadelphia Fed Fed. Forecast: -9.3. Previous: -8.8.
  • 11 a.m.: Treasury buyback. Source: Treasury Department. The Treasury buys securities specified yesterday from dealers.

The Night Watch

  • Exodus Communications( EXDS) fell 6%, but recovered, after warning about the third quarter and full fiscal year.
  • Sanmina( BF) dropped 8% after warning that third-quarter EPS would be 10 cents vs. analysts 19 cents. Revenue expected to be between $760 million and $775 million.
  • Verity (VRTY) fell 14% after announcing fourth-quarter EPS of 25 cents, in-line with estimates and better than the year-ago 20 cents. Verity warned about the new fiscal year, EPS now 85 cents to $1, below analyst EPS forecast of $1.06. 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


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