Updated from 3:19 p.m. EDT

Canadian software maker

Corel

(CORL)

shot up 56.8%, which translates into $2.09, to $5.78, after it said it formed a strategic alliance with

Microsoft

(MSFT) - Get Report

under which the companies will work together on testing, development and marketing for Microsoft's .Net platform.

Corel said Microsoft had purchased 24 million of its nonvoting convertible preferred shares at $5.63. Microsoft said it will end up with a 24.6% nonvoting stake in Corel but is not interested in acquiring Corel. Microsoft ended the day down $2.56 to $56.56.

Beleaguered digital document company

Xerox

(XRX) - Get Report

is doing a good job living up to its late-summer prediction of weak second-half profits. The company announced, after the market close, that it expects a third-quarter loss instead of an expected profit, citing much weaker-than-expected sales in North America and Europe and heavy competition in all businesses. Xerox expects a loss of between 15 cents and 20 cents a share, well below the 10-analyst expected profit of 12 cents.

Xerox had already warned about its second half in late July, leading many analysts to lower profit estimates, and also said a turnaround would take longer than initially expected. After hitting a five-year low of $14.88 on July 28, the stock has bounced in a narrow trading range for the last two months and is currently down more than 30% for the year to date. The stock dropped 25.7%, or $3.94, to $11.38.

Mergers, acquisitions and joint ventures

Antibody therapy developer

Abgenix

(ABGX)

was down $1.13 to $71 after it said that

Pfizer

(PFE) - Get Report

filed with U.S. regulators for approval of clinical trials for a human monoclonal antibody product candidate for the treatment of cancer. The filing triggers an undisclosed payment to Abgenix. Pfizer slid 13 cents to $44.13.

DoubleClick

(DCLK)

will buy

NetCreations

(NTCR)

in a stock-for-stock deal worth about $191 million. DoubleClick fell 11.6%, or $3.44, to $26.19, while NetCreations lost 7.7%, or 88 cents, to $10.50.

The transaction will create the worldwide leader in email list management, allowing marketers access to 22 million email addresses. Terms of the agreement call for DoubleClick to issue 0.41 share of DoubleClick common stock for each share of NetCreations common stock. Based on Oct. 2 closing prices, the price of $12.15 a share is a 17% premium over NetCreations' 10-day average stock price. The deal is expected to be completed in the fourth quarter of 2000.

McLeod USA

(MCLD)

edged up 6 cents to $13.13 after it said it would acquire

CapRock Communications

(CPRK)

in a stock swap that includes about $197 million in equity and the assumption of $335 million in debt. CapRock was off 6 cents to $5.

McLeod said CapRock shareholders will receive 0.39 McLeod Class A share for each CapRock share. Also, McLeod expects to issue about 15.1 million new shares for the transaction, which was approved by the boards of both companies.

3M

(MMM) - Get Report

moved up $2.31 to $94 after it announced it will acquire

Robinson Nugent

(RNIC)

in a deal worth $115 million. Robinson Nugent rose 10.2% on the news to $18.31.

According to the terms of the deal, which the company expects to close by early 2001, 3M will pay $19 for each share of Robinson Nugent stock.

Chemical and ammunition maker

Olin

(OLN) - Get Report

inched up 19 cents to $16.50 on news that it dropped talks for a chemical venture with

Occidental Petroleum

(OXY) - Get Report

because of regulatory issues, among other factors. Occidental crawled up 6 cents to $22.19.

Reliant Energy

(REI) - Get Report

said it agreed to sell its 11.7% interest in Brazilian utility

Light Services de Electricidade

to

AES

(AES) - Get Report

and

EDF International

for $430 million. The sale of its Light investment represents Reliant's entire interest in Brazil, and is part of the company's plan to divest its Latin American business in order to focus on competitive energy services in the U.S. and Western Europe.

The agreement calls for AES to purchase about 30% of the shares Reliant is selling, while EDF, a subsidiary of France's national electric utility,

Electricite de France

, will purchase the remainder. Reliant was $1.38 lower to $46.81, while AES slid 38 cents to $70.25.

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Earnings/revenue reports and previews

Burlington Resources

(BR) - Get Report

lost 88 cents to $36.50 after it said its third-quarter profits will include $30 million in tax benefits and suggested that results may surpass estimates. The amount represents cumulative tax benefits related to previous years' production in the wake of a recent decision about a section of the Internal Revenue Code.

The company said the amount will be included in its third-quarter results, bumping up earnings by 14 cents a share and putting its estimate in a range of 87 cents to 92 cents. Excluding the benefit, the company's earnings will be in the range of 73 cents to 78 cents, still above the 25-analyst estimate of 70 cents.

Chinadotcom

(CHINA)

expressed confidence in its third-quarter forecast, saying its top-line growth will be within the range of industry estimates. The company said it has a cash reserve and cash equivalent exceeding $465 million.

First Call/Thomson Financial

had no estimate for the company's third quarter, but there is a three-analyst estimate of 19 cents a share for the full year. The stock declined $1.06, or 8.6%, to $11.25.

Home builder

D.R. Horton

(DHI) - Get Report

was lifted 69 cents to $17.38 after it said it expects its fourth-quarter earnings to exceed Wall Street expectations by at least 10% because of strong margins and a higher average closing sale price.

An eight-analyst estimate puts the company's earnings at 76 cents a share for the quarter. Also, Horton said its profit for fiscal 2001 should also top by 10% the seven-analyst estimate of $2.80 a share. Fiscal 2001 results are expected to be boosted by strong housing demand, moderating material costs and a record backlog to start the year, Horton said.

Earthgrains

(EGR)

, a breadmaker, reported second-quarter earnings of 21 cents a share, in line with the eight-analyst estimate but below the year-ago 37 cent result. It gained 50 cents to $17.13.

Novametrix Medical Systems

(NMTX)

announced that it expects revenue to grow 30% from a year ago, but that quarterly earnings will fall below its expectations due to electronics parts shortages. The news sent the stock down 81 cents to $5.06.

Schering-Plough

(SGP)

was boosted $1 to $46.75 after it said it expects full-year EPS to meet the 30-analyst estimate of $1.65. The drug company reported EPS of $1.42 a share for 1999.

Homebuilder

Standard Pacific

(SPF)

hopped up 38 cents to $19 on news that it expects third-quarter earnings to beat analysts' forecasts, thanks to higher home prices and wider margins. The current analyst estimate calls for Standard Pacific to come in between 62 and 75 cents a share.

Systems & Computer Technology

(SCTC)

dropped almost 20%, or $3.38, to $13.63 after it said it expects to report fourth-quarter earnings between 9 cents and 13 cents a share, far below the five-analyst estimate of 25 cents, amid lower revenue. The company, which provides information technology services for colleges, local governments and manufacturers, said it sees revenue of more than $105 million, down from the year-ago $119 million.

Tenet Healthcare

(THC) - Get Report

, a hospital operator, posted first-quarter earnings of 48 cents a share, topping the 24-analyst 45 cent estimate and the year-ago 39 cent result. It slid 13 cents to $37.94.

Tower Automotive

(TWR)

said third-quarter earnings will fall below expectations, citing

Ford's

(F) - Get Report

truck production cuts among other factors. Tower said it sees earnings in the range of 20 cents to 25 cents a share, missing the 14-analyst estimate of 42 cents.

Tower also said it agreed to sell its heavy truck rail manufacturing business to its joint venture partner

Metalsa

, a privately held Mexican firm, for $55 million in cash. The deal also includes a provision that would pay Tower up to $30 million more based on whether Metalsa hits certain profit levels.

Tower also plans to phase out a heavy truck rail manufacturing unit in Milwaukee by March 2001, and consolidate operations including shutting down a facility in Kalamazoo, Mich. The restructuring will result in a pretax fourth-quarter charge of $140 million as well as cutting 800 jobs. Tower ended the day 19 cents higher to $9.81.

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Offerings

Free Networks

has withdrawn its planned initial public offering of $172.5 million, citing market conditions.

Oplink Communications

(OPLK)

has raised its IPO range to $16 to $18 a share from $14 to $16 a share.

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Analyst actions

IMS Health

(RX)

bounced 81 cents to $20.75 after it was added to

Goldman Sachs'

U.S. recommended for purchase list and was raised to buy from outperform at

Lehman Brothers

.

Franklin Resources

(BEN) - Get Report

was removed from Goldman's list. The stock was down $1.78 to $43.56.

On the heels of a profit warning from

Playtex Products

(PYX) - Get Report

,

Banc of America Securities

cut its rating on the stock to market performer from buy. The stock dropped $1.88, or 15.7%, to $10.06.

Earlier today, the consumer and infant products maker said third-quarter earnings would fall below analyst estimates. Playtex cited the effect of unusual summer weather on sales of sun care and other products for the shortfall. The company expects to earn 5 to 7 cents per share, compared to the 14-cent analyst estimate.

Upgrades

Charter Communications

(CHTR) - Get Report

: UP to intermediate buy from accumulate at

Merrill Lynch

. It moved up 88 cents, or 5.1%, to $18.

Equifax

(EFX) - Get Report

: UP to buy from attractive at

Bear Stearns

. The stock was boosted 12.1%, or $3.25, to $29.94 on the news.

Power-One

(PWER)

: UP to strong buy from outperform at

Morgan Stanley Dean Witter

. Power-One jumped $3.13, or 6%, to $55.13.

Downgrades

Allergan

(AGN) - Get Report

: DOWN to buy from strong buy at

Credit Suisse First Boston

; price target: $79. The stock tumbled $7.31, or 9.2%, to $72.25.

American Financial Group

(AFG) - Get Report

: 2000 EPS estimate DOWN to $1.13 a share from $1.55 at CSFB; and 2001 outlook to $2 a share from $2.20. The stock lost 50 cents to $22.56.

Electronics for Imaging

(EFII) - Get Report

: DOWN to neutral from outperform at Morgan Stanley. It sunk about 17%, or $4.19, to $20.50.

FleetBoston Financial

(FBF)

: DOWN to market perform from buy at

J.P. Morgan

. Despite the downgrade, it managed to bounce and ended the day up 50 cents to $39.

Knight Trading Group

(NITE)

: 12-month price target DOWN to $45 from $50 at

ABN Amro

. Knight fell $2.19, or 6.4%, to $32.19.

Post Properties

(PPS)

: DOWN to outperform from strong buy at Morgan Stanley. It slid $1.75 to $36.50.

Project Software

(PSDI)

: DOWN to market performer from outperformer at Goldman and 2000 EPS estimate DOWN to 34 cents from 57 cents. The stock pushed up 63 cents, or 5.6%, to $11.88.

Satyam Infoway

(SIFY) - Get Report

: 12-month price target DOWN to $45 from $21 at

Salomon Smith Barney

. The stock declined 12.5%, or $1.63, to $11.38.

ServiceMaster

(SVM) - Get Report

: DOWN to neutral from outperform at Morgan Stanley. ServiceMaster moved up 38 cents to $9.13.

Initiations

Avaya

(AV)

: NEW outperform at Morgan Stanley. Avaya tanked, falling about 20%, or $4, to $16.19.

Bally Total Fitness Holding

(BFT)

: NEW buy at

Banc of America Securities

. Bally was off 44 cents to $24.19.

Compaq

(CPQ)

lost 84 cents to $27.45 even though it was started as a hold at ABN Amro.

EMC

(EMC)

: NEW buy at ABN Amro; 12-month price target: $135. EMC tumbled $5.25, or 5.3%, to $94.

eMerge Interactive

(EMRG)

: NEW buy at CSFB; 12-month price target: $27.50. It declined $1.44, or 9.5%, to $13.63.

Integrated Silicon

(ISSI)

: NEW strong buy at

SG Cowen

. The stock gained $1.06, or 7.5%, to $15.25.

Partner

(PTNR) - Get Report

: NEW buy at

Dresdner Kleinwort Benson

. It slid 38 cents to $7.25.

Sun Microsystems

(SUNW) - Get Report

: NEW outperform at ABN Amro. Sun sank $5.19 to $108.38.

Group Moves

WIT SoundView

cut its ratings on four semiconductor-equipment makers:

  • Applied Materials (AMAT) - Get Report: DOWN to buy from strong buy. Price target: DOWN to $70 from $113. It was knocked down $5.06, or 8.9%, to $51.63.
  • Brooks Automation (BRKS) - Get Report: DOWN to buy from strong buy. Price target: DOWN to $50 from $90. Brooks plummeted 11.7%, or $3.50, to $26.38.
  • Semitool (SMTL) : DOWN to hold from buy. Price target: DOWN to $18 from $25. The stock took a dive of 13.6%, or $1.81, to $11.50.
  • Nanometrics (NANO) - Get Report: DOWN to hold from buy. Nanometrics plunged 15.3%, or $7.63, to $42.38.

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Miscellany

Charles Schwab

(SCH)

, the world's largest Web and discount brokerage, announced that it has created a new management team to develop such money management and banking services operations. It lost $1.44 to $33.56.

Cisco

(CSCO) - Get Report

gained 75 cents to $56.25 after it unveiled plans for a new 674,000-square-foot optical plant in New Hampshire, which it expects to create 2,500 new jobs within the next five years. The plant, which produced its first optical networking gear two weeks ago, comes as a strategy to further develop Cisco's outsourcing capabilities.

The networking giant said it would like some of its contract manufacturers of optical equipment to set up shop in the plant and have been talking to such companies as

Solectron

(SLR)

,

Flextronics

(FLEX) - Get Report

. About 70% of its optical networking units are made by contract manufacturers.

Cisco also said it is "doing well at nibbling away at the backlog" of $3.83 billion, recorded as of last Monday, which it said resulted from increases in demand.

Concurrent Computer

(CCUR)

fell $1.88, or 10.1%, to $16.75, after it said it named Jack Bryant as CEO and said Steve Nussrallah will replace Morton Handel as chairman. Handel will remain a member of the board. The company said it sees a second-quarter charge of $1.2 million, or 2 cents a share, for compensation and benefits.

Broadband provider

Covad Communications

(COVD)

said that it has reached its third-quarter goal of more than 200,000 lines installed. Covad was sent down 17.5%, or $2.09, to $9.91.

IBM

(IBM) - Get Report

bellyflopped 6%, or $7.25, to $110.56, after it said that it will unveil a new mainframe computer, the first to be sold under a single brand name covering all its business computers. Big Blue said that it is moving its four lines of servers, which are computers that run networks of other computers, to the "eServer" brand name.

Intel

(INTC) - Get Report

was up 19 cents to $40.31 after the

Semiconductor Industry Association

announced that worldwide sales of semiconductors grew 53% in the month of August.

Strong growth in the Asia-Pacific region and rising demand for Internet and communications devices sparked the boom in the industry. The association said semiconductor sales jumped to $18.2 billion for the month from sales of $11.9 billion in August 1999.

Despite the news, it doesn't change the fact that Intel issued an

earnings warning Sept. 21, citing softer-than-expected sales in Europe. And just Friday the company canceled plans for a new

low-cost computer chip. Also, there is speculation the company will delay the introduction of its next-generation processor, the Pentium IV.

Inspire Pharmaceuticals

(ISPH)

filed an investigational new drug application with the FDA for a drug, currently called INS37217 Respiratory, that will treat cystic fibrosis. Inspire is co-developing the drug with

Genentech

(DNA)

. Inspire was down 88 cents to $28.88, while Genentech slid $4.63 to $175.38.

Financial-services company

Jefferies Group

(JEF) - Get Report

edged up 13 cents to $27.06 after it said that it would name Richard Handler its new chief executive officer, replacing Frank Baxter, who will remain the company's chairman.

Real estate services company

Trammell Crow

(TCC)

said President and CEO George Lippe will retire but remain on the board. The company named CFO Robert Sulentic as CEO and president. Trammell Crow was off 19 cents to $14.75.

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By the Numbers

The data on NYSE and Nasdaq percent 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.

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