(Updated from 8:47 a.m. ET)

This is the inaugural edition of Ticker-Tape Parade, TheStreet.com's daily morning report on all the news, corporate announcements and economic data that investors need to know.

Tellabs

(TLAB)

was the big story this morning after announcing yesterday after the close that its second-quarter gross margins would be in the low 40% range, meaning a loss of 45 cents a share for the quarter. Analysts were expecting the telecom equipment maker to break even. The news comes on the heels of recent announcements about more problems at rivals

Nortel

(NT)

and

Lucent

(LU)

.

For more on the Tellabs blow-up, read below and check out Scott Moritz's

Tellabs Plays Mini-Nortel With Steep Downfall.

Headlines:

  • Bear Stearns (BSC) announced 2Q EPS of $1.18, 21% lower than year-ago $1.40. Analysts expected EPS of $1.09.
  • McClatchy(MNI) - Get Report raised 2Q EPS outlook to range between 35 cents and 38 cents vs. previous guidance of 33 cents to 36 cents. Analysts expect EPS of 36 cents.
  • McCormick(MKC) - Get Report announced 2Q EPS of 38 cents vs. year-ago 35 cents and analysts 36 cents. Sales rose 17%.
  • Pulitzer (PTZ) lowered 2Q, EPS outlook to range between 26 cents and 28 cents vs. year-ago 50 cents. Analysts expect EPS of 31 cents.
  • Worthington Industries(WOR) - Get Report announced 4Q EPS of 17 cents vs. year-ago 25 cents. Analysts expected 13 cents a share.
  • Actuant (ATU) said 3Q EPS was 50 cents vs. year-ago 92 cents and better than analysts' expectation of 43 cents. ATU said it doesn't see any rebound soon.
  • CuraGen (CRGN) and European partner Bayer announced the discovery of 12 obesity drug target proteins.
  • First Union (FTU) and Wachovia(WB) - Get Report received Federal Trade Commission approval for their $13.5 billion merger.
  • General Electric(GE) - Get Report and Honeywell(HON) - Get Report merger update: In a draft decision, the European Commission staff recommended nixing merger deal.
  • IBM(IBM) - Get Report received approval from the European Commission to buy Informix's (IFMX) database business for $1 billion.
  • Infineon Technologies (IFX) warned that 3Q loss could be 600 million euros, or $512.3 million. Also said FY2001 loss wasn't out of the question. Analysts expect FY2001 earnings of 18 cents.
  • Insight Communications' (ICCI) planned offering of 4.35 million shares priced at $23.45 a share.
  • Kansas City Southern(KSU) - Get Report rose in preopen trading after shelving plans to offer stock and mandatory convertible units in concurrent public offerings.
  • Lennar(LEN) - Get Report said 2Q EPS came in at $1.40, 166% higher than the year-ago 64 cents and better than $1.06 expected by analysts. Lehman Brothers raised FY2001 EPS estimate to $5.25 vs. consensus $4.71 and raised FY2002 EPS to $6 vs. consensus $5.03.
  • Lockheed Martin(LMT) - Get Report said FY2001 earnings growth would be 25% to 30%, according to Reuters. For FY2002, Lockheed said growth would be 20%.
  • Mercantile Bancshares(MRBK) - Get Report announced 2Q EPS would be 62 cents, flat with 1Q and lower than 66 cents expected by analysts. The company said interest income was hurt by falling interest rates.
  • Northrop Grumman(NOC) - Get Report said it will report sales of $18 billion by 2003.
  • Northwest Airlines (NWAC) warned 2Q loss would be $50 million to $75 million. The airline said 3Q would be better.
  • Phoenix (PNX) priced its IPO at $17.50 a share for 48.8 million shares, netting $854 million.
  • Red Hat (RHAT) broke even in 1Q vs. year-ago loss of 2 cents and in line with analysts' estimates. RHAT earned $600,000, the first profit in its history.
  • Teradyne(TER) - Get Report expects a 2Q loss of 5 cents to 10 cents a share, including a charge. Analysts expected 2Q earnings, sans charges, to come in at a penny a share.

On the Analyst Front:

  • Applied Micro Circuits (AMCC) , PMC-Sierra (PMCS) , Vitesse Semiconductor (VTSS) and Conexant Systems(CNXT) - Get Report had their EPS estimates cut by Goldman Sachs, which said 3Q would decline from 2Q. However, Goldie said weakness could be opportunity to buy, from a trading standpoint.
  • Sun Microsystems(SUNW) - Get Report was downgraded to long-term accumulate from long-term buy at Merrill Lynch.
  • Compaq (CPQ) , Gateway (GTW) and Dell(DELL) - Get Report had their price targets and FY2002 EPS cut by Salomon Smith Barney.
  • Intel(INTC) - Get Report and rival Advanced Micro Devices(AMD) - Get Report had their FY2001 and FY2002 EPS cut to well-below consensus by Lehman Brothers.
  • Red Hat was downgraded to neutral from buy at W.R. Hambrecht based on poor visibility.
  • Tellabs will get shellacked today as analysts react after the fact. Credit Suisse First Boston downgraded to hold from buy and lowered estimates. Lehman Brothers, W.R. Hambrecht and many others lowered estimates.

Doug Kass' Recommended Reading:

  • Gretchen Morgenson's " Market Place: Future May Be More Uncertain for Technology " in The New York Times. (Free, but registration required.)

Today's Fake Word:

  • Tel-K.O.ed, v. -- to be caught in the wake of the current difficulty in the optical networking space. As in, "Nortel and Tellabs were tel-K.O.ed after warning about future earnings." Both are off more than 40% in just a month's time.

Earnings on Deck:

  • H&R Block(HRB) - Get Report 4Q EPS expected at $4.01 vs. year-ago $3.45. After the bell.
  • Riverstone Networks (RSTN) 1Q expected at a 5-cent loss vs. year-ago 13-cent loss. After the bell.
  • Verity (VRTY) 4Q EPS expected at 25 cents vs. year-ago 19 cents. After the bell.

Be on the Lookout For:

  • 9 a.m.: Treasury buyback announcement. Sour ce: Bureau of the Public Debt. The Treasury announces the details of tomorrow's reverse auction.
  • 10 a.m.: Leading economic indicators for May. Source: Conference Board. Forecast: n.a. Previous: +0.1%.
  • 1:30 p.m.: Treasury auction. Source: Bureau of the Public Debt The Treasury announces the results of its monthly two-year note auction, at which $10 billion of securities will be sold, with bids due at 1 p.m.
  • 2 p.m.: Federal Budget for May. Source: Treasury Department. Forecast: -$22.05B. Previous: +$189.796B (April FY '01)
  • 6:30 p.m.: Consumer Comfort Index for the week ended June 18. Source: Money Magazine and ABC News Forecast: n.a. Previous: 3

Oh, Right, a Speech Too:

  • Federal Reserve Chairman Alan Greenspan delivers testimony to the U.S. Senate Committee on Banking, Housing, and Urban Development on the condition of the banking system. In Washington at 10 a.m.

In Overnight Activity:

  • Tellabs fell 14% in after-hours trading after warning that 2Q EPS would be break-even vs. year-ago 39 cents. Analysts were expecting 29 cents a share.
  • Ciena(CIEN) - Get Report continued to take a beating, falling 4% at night after falling 5.4% during the day.
  • Jabil Circuit(JBL) - Get Report inched lowed after it announced 3Q EPS in line with lowered estimates. For an extended take on after-the bell tomfoolery, be sure to take a gander at The Night Watch.

Sources & Definitions:

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

Reuters

, unless otherwise noted. All times are Eastern, always. After-hours quotes are from electronic brokerage Instinet, unless otherwise noted. EPS -- earnings per share, 1Q -- first quarter, CY -- calendar year, FY -- fiscal year, CEO -- chief executive officer, CFO -- chief financial officer, COO -- chief operating officer, CIO -- chief information officer.