Updated from 3:56 p.m. EDT

Credit Suisse First Boston

has agreed to acquire

Donaldson Lufkin & Jenrette

(DLJ)

in a deal valued at $11.5 billion. According to the terms,

Credit Suisse Group

, the parent of CSFB, would pay France's

AXA

(AXA)

$90 a share for the investment bank. AXA would receive 30% in cash and 70% in Credit Suisse shares for its stake. AXA is the parent company of

AXA Financial

(AXF)

, which holds a 70% interest in DLJ.

CS Group said the acquisition, which would put assets under management at $842 billion, would add to earnings after 2002, and that it sees annual savings between $750 million to $1 billion before taxes by 2002. DLJ bounced $4.38, or 5.2%, to $88.38, while AXA Financial tacked on 6 cents to $52.31.

For more on the impact of the financial merger, check out an earlier

article from

TheStreet.com

.

Whirlpool

(WHR) - Get Whirlpool Corporation (WHR) Report

ended unchanged at $37.88 after warning investors that its third- and fourth-quarter earnings would miss analysts' forecasts by a large amount. The company blamed the shortfall on

Circuit City's

(CC) - Get Chemours Co. Report

move to stop selling major appliances. Whirlpool sees third-quarter earnings coming in between 95 cents and $1.05 a share, well-below the eight-analyst estimate of $1.52, and a fourth-quarter profit between $1.45 a share and $1.55 a share, also missing the six-analyst estimate of $1.68.

The company also said earnings would be further dented by pricing pressures in North America and Europe, explaining that higher material costs and a strong dollar in Europe are expected to cut 20 cents to 25 cents off the second-half results. The announcement comes just days after the stock was downgraded to sell from hold at

Prudential Securities

.

Mergers, acquisitions and joint ventures

After the close Tuesday, the

Justice Department

announced that it has filed an agreement in federal court that gives

AMFM

(AFM)

permission to merge with

Clear Channel Communications

(CCU) - Get Compania Cervecerias Unidas S.A. Sponsored ADR Report

. The $15.9 billion deal creates the No. 1 owner of radio stations in the United States. AMFM slipped 50 cents to $72.31.

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Earnings/revenue reports and previews

Blyth

(BTH)

, a company that makes home fragrance products, stumbled $3.56, or 13%, to $23.81 after posting second-quarter earnings of 38 cents a share, in line with the four-analyst estimate and up from year-ago earnings of 34 cents a share. The company also announced its full-year projections of 7% to 8% sales growth and full-year EPS of $2.10 to $2.15, which would be lower than the four-analyst estimate of $2.20.

Donaldson

(DCI) - Get Donaldson Company, Inc. Report

, a filtration systems manufacturer, skidded 31 cents to $20.94 after posting fourth-quarter earnings of 40 cents a share, in line with the three-analyst estimate and up from the year-ago 39-cent profit.

Fleetwood Enterprises

(FLE)

declined 38 cents to $13.56 after posting a first-quarter loss of 95 cents a share, greatly wider than the two-analyst estimate of a 9-cent loss and down from the year-ago 72-cent profit. The recreational-vehicle maker said it expects second-quarter earnings to miss the single-analyst estimate of a 17-cent profit due to weakness in the manufacturing housing market.

Tower Automotive

(TWR)

lost 44 cents to $11.13 after announcing that

Ford's

(F) - Get Ford Motor Company Report

decision to cut output will cause it to reduce third-quarter earnings by 3 cents to 5 cents a share. Tower manufactures vehicle frames for the Ford

Ranger

and

Explorer

models. Ford added 63 cents to $25.88.

Zale

(ZLC)

shed 63 cents to $37 after posting fourth-quarter earnings of 32 cents a share, beating the 16-analyst estimate of 29 cents and up from the year-ago 23-cent profit. The retailer also announced the retirement of Chairman Robert Dinicola, who will be replaced by CEO Beryl Raff.

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Analyst actions

Goldman Sachs

reiterated

Amazon.com

(AMZN) - Get Amazon.com, Inc. Report

as a trading buy, calling its leverage and outlook positive. Amazon.com climbed $3.31, or 8.4%, to $42.94.

Upgrades

Corning

(GLW) - Get Corning Inc Report

: price target UP to $400 from $375 at

Merrill Lynch

; fiscal 2001 EPS estimates UP to $4.05 a share from $4.10. Corning soared $15.25 to $324.88.

Gtech Holding

(GTK)

: UP to intermediate-term buy from accumulate at Merrill Lynch; price target of 23. Gtech Holdings tacked on 69 cents to $17.81.

J.P. Morgan

(JPM) - Get JPMorgan Chase & Co. (JPM) Report

: UP to buy from a hold at

ING Barings

; price target of 200. J.P. Morgan lifted $2.06 to $151.06.

Manulife Financial

(MFC) - Get Manulife Financial Corporation Report

: ADDED to U.S. recommended list at Goldman Sachs. Manulife Financial bounced 88 cents to $20.81.

Nuevo Grupo Iusacell

(CEL) - Get Cellcom Israel Ltd. Report

: UP to buy from hold at

Credit Suisse First Boston

. Nuevo Grupo Iusacell bounced 69 cents, or 6%, to $12.13.

Downgrades

Beringer

undefined

: DOWN to neutral from buy at

Salmon Smith Barney

. Beringer was unchanged at $55.31.

Borders

(BGP)

: DOWN to market performer from market outperformer at Goldman. Borders fell 13 cents to $13.44.

Transworld Entertainment

(TWMC) - Get Trans World Entertainment Corporation Report

: DOWN to market performer from market outperformer at Goldman. Transworld Entertainment shed 22 cents to $9.69.

Williams

(WMB) - Get Williams Companies, Inc. Report

: DOWN to accumulate from strong Buy at

Prudential Securities

. Williams ended down 96 cents to $45.73 a share.

Initiations

Amphenol

(APH) - Get Amphenol Corporation Class A Report

: NEW buy at Salomon Smith Barney; price target of 92. Amphenol jumped $3.13, or 5%, to $65.50

Cemex

(CX) - Get Cemex SAB de CV Sponsored ADR Report

: NEW buy at CSFB; 12-month price target: 35. Cemex climbed 63 cents to $23.25.

EXE Technologies

(EXEE)

: NEW strong buy at

Banc of America

; NEW buy at Salomon Smith Barney; price target of 25. EXE Technologies popped $4.25, or 40.5, to $14.75

Financial Federal

(FIF) - Get First Trust Energy Infrastructure Fund Report

: NEW outperform at Salomon Smith Barney; price target of 24. Financial Federal edged up 31 cents to $21.

Inktomi

(INKT)

: NEW buy at Lehman Brothers. Inktomi bounced $6.81, or 5.7%, to $126.

Lantronix

TheStreet Recommends

(LTRX) - Get Lantronix, Inc. Report

: NEW buy at Lehman Brothers. Lantronix declined 6 cents to $10.56.

Microtune

(TUNE)

: NEW market outperformer at Goldman Sachs; NEW strong buy at

SG Cowen

; NEW buy at

Chase Hambrecht & Quist

; and NEW buy at

Bear Stearns

. Microtune bounced $14, or 33.3%, to $56.

NS Group

(NSS) - Get Nustar Logistics LP Notes 2013-15.1.43 Gtd Subord Fltg Rt Report

: NEW intermediate-accumulate, long-term buy rating at Merrill Lynch; price target of 25. NS Group 44 cents to $17.56.

Watson Pharmaceuticals

(WPI)

: NEW buy at Bear Stearns. Watson Pharmaceuticals climbed 94 cents to $60.13.

Group Moves

CIBC World Markets

rolled out coverage of gaming stocks:

  • UTStarcom (UTSI) - Get UTStarcom Holdings Corp. Report: NEW buy. It ended the day down $1.13, or 5%, to $21.63.
  • MTR Gaming (MNTG) : buy. MTR moved up 81 cents, or 11.3%, to $8.
  • Hollywood Casino (HWD) : NEW strong buy. The stock jumped 75 cents, or 10%, to $8.25.
  • Ameristar (ASCA) : NEW hold. It was up 13 cents to $4.75.

Credit Suisse First Boston downgraded several Web consulting firms:

  • Modem Media (MMPT) : buy from strong buy. It was down 75 cents, or 6.7%, to $10.44.
  • Rare Medium (RRRR) : buy from strong buy. Rare Medium slipped 44 cents to $10.31.
  • Viant (VIAN) : buy from strong buy. Viant dropped $1.94, or 11.8%, to $14.50.
  • Cambridge Technology Partners (CATP) : hold from buy. The stock was down $1.63, or 21.1%, to $6.06.
  • iGate Capital (IGTE) : hold from buy. It was down 19 cents to $7.06.

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Offerings and stock actions

Apollo Group

(APOL)

, which runs private colleges, said its shareholders favor creating a tracking stock for its online business of the

University of Phoenix

. The news lifted the stock $1.31 to $41.56.

Big Dog

(BDOG)

said it has completed its $6.25-a-share tender offer for 3.5 million shares. Still, the stock slid 6 cents to $5.94.

Cooper

(COO) - Get Cooper Companies, Inc. Report

jumped $3.56, or 12.3%, to $32.56 after it set a 1 million share buyback plan.

Pharmacia's

(PHA)

Monsanto

agricultural unit set an initial public offering at 35 million shares of common stock with an estimated range of $20 to $25 each. Pharmacia was down 44 cents to $58.44.

Philip Morris

(MO) - Get Altria Group Inc Report

said it will increase its quarterly dividend more than 10% to 53 cents a share. The stock ended the day off 38 cents, falling to $30.50.

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Miscellany

Caterpillar

(CAT) - Get Caterpillar Inc. Report

was 50 cents lower to $37.56 after saying it expects to cut $1 billion in costs over the next several years and increase sales 50% to $30 billion by 2006. The company plans to reach its goals by reducing material costs, lead-times and inventory.

AT&T

(T) - Get AT&T Inc. Report

was down 6 cents to $31.69 after saying it would offer up to five months of free phone service to customers who register for phone service transmitted over cable lines, also known as cable telephony,

The Wall Street Journal

reported.

Irish-based global food ingredients company

Kerry Group

is interested in buying New Jersey-based flavors and fragrances business

Bush Boake Allen

(BOA)

. Bush Boake Allen edged up 56 cents to $43.50.

CNN

announced that it was restructuring top management as

Time Warner

(TWX)

focuses on growing competition. Philip Kent will assume the new position of president and COO of the group. Additionally, the company announced in a memo that Richard Kaplan, president of the network's news operation, plans to resign to pursue other opportunities. Kaplan held the position for three years. Time Warner rose $1.25 to $87.25.

Ford

(F) - Get Ford Motor Company Report

managed to gain 63 cents to $25.88 after saying it was warned about faulty tires on its

Explorer

SUVs in Venezuela in 1998, more than a year before a recall was rolled out there, according to

The Wall Street Journal

. According to the

Journal

, U.S. regulators do not mandate carmakers to report recalls in foreign countries, and the government isn't sure that it can enforce the disclosures.

Separately, the

Journal

reported that Bridgestone will increase its production of replacement tires at Japanese plants.

Deere

(DE) - Get Deere & Company Report

said that it has tapped CEO and President Robert Lane to also be its chairman. The stock dropped $2.06, or 6%, to $32.38.

drkoop.com

(KOOP)

said its new management team is cutting the company's work force a third to reduce costs. In May, the company laid off 35% of its staff, cutting the number of employees to 120. The stock pushed up 13.2%, or 16 cents, to $1.34.

GTSI

(GTSI)

, which sells microcomputer and Unix workstation hardware, has been granted an $857.2 million U.S. defense contract for worldwide military government and communications work. The news lifted the stock 50%, or $1.69, to $5.06.

IBM

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

and

Hewlett-Packard

(HWP)

have entered a pact with

Intel

(INTC) - Get Intel Corporation (INTC) Report

to set up an independent lab for Linux developers, in which they will increase the computer system's ability to handle heavy business tasks. The companies will provide equipment and financial support for the lab over the next several years.

According to

Giga Group

analyst Stacy Quandt, the move is an attempt to rival

Sun Microsystems'

(SUNW) - Get Sunworks, Inc. Report

Solaris operating system, which has the largest presence in data centers with Web-based business technology. IBM declined $2.56 to $130.31, Hewlett-Packard was unchanged at $119.94, Intel slid 56 cents to $73.50 and Sun Microsystems was unchanged at $127.13.

QRS

(QRSI)

, a provider of business-to-business solutions to the retail industry, said it's searching for new independent accountants. On Aug. 21,

Deloitte & Touche

resigned as the company's independent accountants. The CEO of QRS told

TheStreet.com

Tuesday evening that the company and Deloitte parted ways because QRS wanted closer attention from its accountants as it pursued acquisitions. He stressed that there was no disagreement on accounting practices.

TheStreet.com

wrote about the accounting change in a separate

story. QRS ended the day 13 cents lower to $16.81.

SBC Communications

(SBC)

and

BellSouth

(BLS)

were told by the Justice Department that they would have to sell businesses in 16 markets to help resolve antitrust concerns over their joint venture, which would create the country's second-largest wireless carrier. SBC was down 19 cents to $42.13, and BellSouth ended 69 cents lower to $35.88.

Tower Semiconductor

(TSEM) - Get Tower Semiconductor Ltd Report

and

Alliance Semiconductor

(ALSC)

signed a definitive agreement in which Alliance will invest $75 million in Tower's new wafer-fabrication plant in Israel. Tower moved up 94 cents to $29.19, while Alliance was 13 cents lower to $25.88.

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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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