Updated from 3:58 p.m. EDT
Fed has spoken, and interest rates got immunity this time around.
Although the Fed left interest rates unchanged at 6.5%, it warned that inflation was still a risk. The
Federal Open Market Committee meets again Oct. 3, but it said it wouldn't make any market-influencing decisions until after the presidential elections. The committee will have its first post-election meeting Nov. 15.
interest-rate decision in an earlier story.
Beleaguered health Web site
, which warned yesterday that it was out of cash, announced today that it has received $20 million in equity financing and has a new management team and reconfigured board.
According to a story posted in
The Wall Street Journal
online last night, the company would have been forced to close unless it got a $27.5 million cash infusion from investors. In a
Securities and Exchange Commission
filing yesterday, the company said it had "largely expended" the $2 million in cash it had as of June 30. drkoop.com said it needs "significant additional financing in the very near future to fund operations," the
reported. Also yesterday, the company posted second-quarter losses of $1.18 a share, compared with $1.28 a year ago. Shares of drkoop.com fell 17/64, or 19.8%, to 1 5/64.
Medical technology company
dropped 1 5/16 to 49 11/16 after reporting first-quarter earnings of 24 cents a share, which included a charge of 1 cent a share for a legal settlement. The 30-analyst
First Call/Thomson Financial
estimate called for 25 cents, while the year-ago result was 21 cents. Medtronic said it backs the consensus estimate for the second quarter and full year. The 29-analyst estimate for the second-quarter is 26 cents and the 32-analyst estimate for the year is $1.09.
, which last week notified the SEC that it would file its official second-quarter statement late, has revised its first-quarter financial statement. As restated, the company lost 41 cents a share, compared with the originally reported 35-cent loss.
In Mercator's amended SEC filing, the company acknowledges:
Our audit committee became aware of questions concerning the accounting for certain expense items. The audit committee, with the assistance of our auditors, initiated a review of these items and performed certain additional procedures. As a result of these procedures, it was determined that certain expenses were not properly recorded in the first and second quarters of 2000 and, accordingly, it was determined that the financial statements for the quarter ending March 31, 2000, should be restated.
Shares of Mercator, which took a 44% dive after last week's announcement, finished lower 3 3/64, or 18.1%, to 13 49/64.
Mergers, acquisitions and joint ventures
closed down 1 1/16 to 73 after it said it won a five-year, $352 million
Internet hosting and management services company
advanced 2 3/16 to 64 1/16 after it said it agreed to resell storage systems, software and services from
, to its e-business customers.
Ciba Specialty Chemicals Holding
, in an SEC filing, said its 49.3% stake in
has become a "nonstrategic asset" and that it may sell some or all of its investment in the company for an "acceptable" price. Ciba finished behind 3/8 to 30 3/8, while Hexcel rose 11/16 to 14 5/8.
Forest products company
dropped 1 7/16, or 7.2%, to 18 9/16 after saying it would no longer pursuing the sale of the company due to current market conditions. Crown Pacific is looking into other options, including the sale of selected nonstrategic assets and the conversion of the company to a real estate investment trust, or REIT.
China Great Wall Computer Group
are launching a $25 million plant in Beijing to make circuit boards for
mobile phones. IBM slipped 1/16 to 121 3/8, while Nokia lifted 1 7/16 to 42 15/16.
announced that it will acquire
stationery products business. According to the deal, Rubbermaid will buy a substantial portion of its assets and some of the liabilities. The price was not disclosed. Newell Rubbermaid increased 1/2 to 26, while Gillette improved 7/8 to 30 11/16.
Pan Pacific Retail
said it would buy
for $440 million. Pan Pacific Retail lowered 1/4 to 20 5/16.
said it hopes to reach a deal around the end of the month to buy
. Premdor fell 1/2 to 10 5/16, while International Paper moved down 7/16 to 32 5/16.
said it would acquire
in a $200 million stock deal that values Newgen at $18 a share. Teletech said the deal would close in the fourth quarter and should boost earnings immediately. Teletech decreased 1/2 to 29 1/8, while Newgen Results rose 3 1/8, or 22.5%, to 17.
Federal Trade Commission
has made a second request for information from the companies regarding
plan to acquire
. The FTC's latest request concerns endotracheal tube sales, which account for less than $20 million of Tyco's annual worldwide sales. The companies are working with the FTC and hope that the transaction will be closed by the end of September, as originally planned. Tyco International missed 5/16 to 55 7/16, while Mallinckrodt stayed flat at 45 5/8.
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Earnings/revenue reports and previews
posted second-quarter earnings of 49 cents a share, beating the two-analyst estimate by a nickel and up from year-ago earnings of 27 cents a share. C&D Technologies slipped 13/16 to 48 11/16.
Thanks to stellar sales of its arthritis drug
, drug manufacturer
announced that it was comfortable with Wall Street forecasts for 2000 earnings per share of $2.82 to $2.87. That result represents a 15% to 17% growth over 1999 results. Merck closed up 5/8 to 72 1/2.
improved 1 1/16 to 26 1/16 after posting first-quarter earnings of 81 cents a share, better than the four-analyst estimate of 77 cents and the year-ago 15 cents.
posted third-quarter earnings of 50 cents a share, beating the six-analyst estimate of 46-cent earnings and above the year-ago 41-cent result. Spartech ended higher 2 1/16, or 8%, to 27 13/16.
The Sports Authority
lifted 1/16 to 2 7/16 after posting second-quarter earnings of 21 cents a share, beating the two-analyst estimate of 19 cents and the year-ago 12 cents.
sent a statement of objections to
concerning its proposed joint venture with
music operations. In June, the commission launched a four-month investigation into the venture. The list of objections is a typical second step in the review. Time Warner gained 1 3/8 to 84 9/16.
posted second-quarter earnings of 28 cents a share, ahead of the three-analyst estimate of 26 cents and the year-ago 9 cents. Nvidia staggered 7 3/8, or 9.4%, to 70 13/16.
Thomas & Betts
reported a second-quarter loss of 56 cents a share, which includes items. Excluding the items, the company lost 32 cents. The four-analyst estimate was for a profit of 52 cents, while the year-ago earnings were 75 cents. Thomas & Betts shed 7/16 to 18 15/16.
said it sees 2000 EPS up over 7% after a $600 million stock buyback. TXU missed 1/8 to 34 1/4.
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Salomon Smith Barney
lifted its rating on
to outperform from neutral and set its price target at 50. R.J Reynolds decreased 5/8 to 35 7/8.
: to accumulate from strong buy but raised its price target to 89 from 73. Prudential said the remaining upside represents only a 13% potential price appreciation. MiniMed stumbled 6 19/64, or 8%, to 72 41/64.
: third-quarter EPS estimate UP to $1.46 from $1.35 and fourth-quarter EPS estimate UP to $1.61 from $1.49 at
Deutsche Banc Alex. Brown
; and 2000 EPS estimate up to $6.30 from $6.08. Goldman Sachs moved up 2 1/16 to 119 7/8.
rose 2 7/16 to 58 3/4 after its price target was raised UP to 80 from 65 at
Banc of America
fell 1/4 to 22 7/16 even though its price target was raised to 28 from 25 at Salomon Smith Barney.
Transocean Sedco Forex
: UP to buy from outperform at
. The stock ended the day 2 3/8 higher to 55 7/8.
dropped 1 5/8 to 42 3/8 after it was cut DOWN to neutral from strong buy at
Morgan Stanley Dean Witter
: NEW strong buy at
CIBC World Markets
; price target: 43; NEW buy at
; price target: 40. Still, the stock fell 1 3/4, or 6%, to 27 1/4.
: NEW buy at Salomon Smith Barney; price target: 108. Art Technology edged up 1 to 87.
was started as a NEW neutral at Lehman Brothers; a NEW buy at
with a price target of 200; and a NEW buy at
with a price target of 200, the stock sunk 10 3/4, or 7.6%, to 131 1/4.
A number of firms initiated coverage on
Credit Suisse First Boston
started the stock at buy with a price target of 125, while CIBC World Markets rated the stock a buy with an 18-month target of 125. Banc of America started coverage with a buy rating and a target of 150, and
started the stock as a buy. Corvis inched up 1/16 to 90 13/16.
hopped up 13/16 to 18 7/8 after it was started as a NEW outperform at Lehman Brothers; price target: 27.
: NEW buy at
and NEW strong buy at
CIBC World Markets
; price target: 18. The initiations sparked a 45% jump for the stock. It ended the day up 3 7/32 to 10 5/16.
: NEW accumulate at
; price target: 26; and NEW buy at Salomon: price target: 31. The stock slid 1 to 21 1/4.
edged up 1/8 to 25 7/8 after Chase H&Q started coverage on it as a buy.
: NEW buy at
Donaldson Lufkin & Jenrette
. 12- to 18-month price target: 25. Primedia moved up 9/16 to 20.
: NEW buy at Donaldson Lufkin & Jenrette. The stock was up 1/4 to 23 13/16.
crept up 1/16 to 34 1/8 after coverage was started on the stock as a buy at
; price target: 42.
: NEW strong buy at Prudential. Trimeris jumped up 5 9/16, or 9.4%, to 64 15/16.
: NEW strong buy at Deutsche Banc Alex. Brown. Webex was 3, or 10%, higher to 32 7/8.
at buy with a price target of 40 and started
with a hold rating. Proxicom fell 3, or 9.6%, to 28 3/8, while Scient plummeted 6 7/8, or 15.1%, to 38 3/4.
adjusted ratings for two airline companies:
- AMR (AMR) : 2000 earnings estimate UP to $4.80 from $4.70. The stock was lifted 1 3/16 to 33 13/16.
US Airways (U) : 2000 earnings estimate DOWN to a loss of 10 cents from a profit of 40 cents. 2001 earnings estimate: DOWN to $2.00 from $2.30. US Airways ended the day 1 1/4 lower to 34 1/4.
initiated coverage of six Internet commerce companies:
- Ariba (ARBA) : NEW buy. 12-month price target: 180. It was up 2 1/2 to 142 3/4.
Clarus (CLRS) : NEW buy. 12-month price target: 130. Clarus shot up 10 15/32, or 27.6%, to 48 13/32.
Commerce Oneundefined: NEW buy. 12-month price target: 75. Commerce One was 2 7/16, or about 5%, higher to 51 3/8.
Freemarketsundefined: INITIATED buy. 12-month price target: 90. Freemarkets was up 1 1/4 to 54 3/4.
Global Sources (GSOL) : INITIATED buy. 12-month price target: 90. The stock rocketed up 8 3/8, or 31%, to 35 3/8.
Opus360 (OPUS) : INITIATED buy. 12-month price target: 7. The stock was up a whopping 81.6%, or 1 15/16 to 4 5/16.
lifted price targets on four utility companies:
- Duke Energy (DUK) price target UP to 81 from 70 and 2000 EPS view up to $4.05 from $4. 2001 EPS view up to $4.50 from $4.40. Duke was pushed up 5/8 to 70 5/16.
Dominion Resources (D) : price target UP to 62 from 55. It hopped up 3/8 to 51 15/16.
Constellation Energy (CEG) ; price target: UP to 45 from 37. The stock edged up 1/16 to 38 9/16.
PP&L Resources (PPL) ; price target: UP to 38 from 32. PP&L gained 3/16 to 30 3/16.
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moved up 5/16 to 34 1/16 after it said President Verne Istock will retire Sept. 30. Istock has been with Bank One and its predecessors for 37 years.
Center for Auto Safety
has filed a federal lawsuit seeking to force
to replace tires potentially linked to 62 traffic deaths. According to the consumer group, the number of tires covered in its suit is at least twice as large as the 6.5 million that Bridgestone/Firestone has already agreed to recall.
According to published reports, Ford ordered a two-week shutdown of three truck assembly plants in order to free up more replacement tires. The move comes as sales of Ford Explorers are slipping.
Merrill Lynch reduced Ford's 2000 EPS estimate by 3 cents. The stock was up 1/4 to 27 1/2.
was down 2 to 48 11/16 after announcing the promotion of J. Joseph King to vice chairman and chief executive.
dropped 4 3/4, or 10.1%, to 42 1/8 on news that it plans to form a new unit focused on women's footwear and clothing, which eventually is to generate a third of the company's total sales,
The Wall Street Journal
was lifted 3 1/6, or 14.5%, to 24 3/16 after naming Michel De Rosen as its chief executive.
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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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