Friday, Sept. 10, 1999
Markets
Island ECN offers trading, mainly in Nasdaq-listed stocks, from 8 a.m. to 5:15 p.m. EDT
.
--
Eric Gillin
Day Session Report
The major U.S. stock indices closed today's trading session with dissimilar outcomes. The
Dow Jones Industrial Average
surrendered its early afternoon gains and declined 19 to 11,061, while the
Nasdaq Composite Index
continued to advance, ending the day up 39 at 2891.
In Europe, market indicators ended the session mixed. France's
CAC
was up 28 at 4745, Germany's
Dax
climbed 47 to 5483 and London's
FTSE
was down 69 at 6191.
TheStreet Recommends
In Asia, Japan's
Nikkei
managed to hold onto some of yesterday's gains, closing the trading session up 33 to 17,711, while Hong Kong's
Hang Seng
climbed 1 to 13,855.
Mergers, Acquisitions and Joint Ventures
An investment group led by
Broadcom
undefined
President and CEO Henry T. Nicholas III is reportedly close to inking a letter of intent to acquire
Major League Baseball's
Anaheim Angels
and the
National Hockey League's
Mighty Ducks
from
Disney
(DIS)
for $400 million to $500 million,
The New York Times
reported.
Illinois Tool Works
(ITW)
hammered out an agreement to acquire
Premark International
(PMI)
in a $3.4 billion deal. Under the agreement, shareholders of Premark, a commercial food-equipment maker, will receive ITW stock with a market value of $55 for each Premark share. But the amount may vary, based on ITW's average share price in the 20 trading days before closing. Deerfield, Ill.-based Premark will become a wholly owned subsidiary of ITW.
ABN Amro
raised its price target on Illinois Tool to $100 from $93 and maintained its buy rating on the stock.
Old Kent Financial
undefined
announced its plans to buy
Grand Premier Financial
undefined
in a deal valued at $394 million. Old Kent said it would assume a one-time charge of $30 million.
Merrill Lynch
(MER)
unveiled plans to take a 14.3% interest in the electronic-trading system,
Archipelago Holdings
, which will start transacting orders in Big Board-listed stocks,
The Wall Street Journal
reported.
Earnings/Revenue Reports and Previews
ABC-NACO
(ABCR)
posted fourth-quarter earnings of 25 cents a share, in line with the five-analyst estimate of 25 cents but below the year-ago 28 cents.
Dow Chemical's
(DOW)
CEO said he was comfortable with third-quarter earnings estimates. The 14-anlayst estimate calls for earnings of $1.32 a share.
GenCorp
(GY)
posted third-quarter earnings of 53 cents a share, beating both the five-analyst estimate of 52 cents and the year-ago 42 cents.
Maytag
(MYG)
said it expects to post third-quarter earnings close to the year-ago 84 cents a share, missing analysts' estimate of 99 cents. The company blames the disappointing earnings on slow sales in low-priced to moderately expensive home appliances.
National Semiconductor
(NSM)
reported a first-quarter profit of $57 million, or 25 cents a share, including a gain, reversing the year-ago loss of 63 cents a share. The 19-analyst estimate called for a loss of 14 cents a share. National Semiconductor didn't release per-share figures excluding the gain, but said pretax profit excluding the gain was $1.2 million.
Warburg Dillon Read
upped its year 2000 estimates on the stock to $1.18 from 59 cents, while
Salomon Smith Barney
took its fiscal 2000 estimates up to $1.25 from 75 cents and set a price target of 55.
Potash
(POT)
said it would shut down two U.S. nitrogen-fertilizer facilities and slice third-quarter earnings estimates in half. The plant closings in Clinton, Iowa, and LaPlatte, Neb., along with three others announced on Aug. 12, will mean an estimated $37 million third-quarter writeoff for the company. Potash said harsh market conditions in nitrogen and slowing trends in potash and phosphate would drive third-quarter earnings down to about a quarter of its $1.01 per share earnings for the same period last year.
J.P. Morgan
reduced the stock's rating to market performer from long-term buy.
Whirlpool
(WHR)
said it was comfortable with analysts' third-quarter and fiscal year estimates of $1.33 and $5.15 respectively.
Offerings and Stock Actions
Children's Place
(PLCE)
said it iced plans for a secondary offering of 3 million shares, citing a drop in its share price.
HNC
undefined
announced its plans to spin off its
Retek
division in an initial public offering of its common stock. HNC said it expects the offering to debut in the fourth quarter.
Primus Telecommunications
undefined
has set plans for a stock offering to raise $141.25 million.
Lehman Brothers
and
Morgan Stanley Dean Witter
will serve as the deal's lead underwriters.
Analyst Actions
Dain Rauscher
sliced its rating on
Apex
(APEX)
to buy from strong buy.
Merrill Lynch raised its rating on
Atlantic Coast Air
(ACAI)
to near-term accumulate from a neutral.
Credit Suisse First Boston
analyst Mark Wolfenberger boosted
AppNet
(APNT)
and
Viant
undefined
with positive comments.
Banc of America Securities
started
Capital One
(COF)
with a buy rating.
Warburg Dillon Read sliced its third-quarter and 1999 earnings estimates on
Chase Manhattan Bank
undefined
to $1.28 from $1.33 and to $5.40 from $5.55 respectively, maintaining its strong buy rating. Yesterday, Merrill Lynch analyst Judah Kraushaar reiterated his near-term accumulate long-term buy on its shares and left the stock's estimates unchanged.
Wachovia Securities
rolled out coverage of
eBay
(EBAY)
with a long-term buy rating and a price target of $208.
ING Barings
cut its rating on
HealthSouth
(HRC)
to a hold from a buy. Yesterday, the company said it decided not to spin off its inpatient operations to shareholders and would instead keep its divisions under one business. HealthSouth also announced plans to restructure management at its outpatient services, a move that will result in charges of $250 million to $300 million by the end of the year. J.P. Morgan sliced its rating on the shares to a long-term buy from a buy, while
Credit Suisse First Boston
and
Donaldson Lufkin & Jenrette
also dropped their ratings on the stock.
Lehman Brothers downgraded shares of
Idec Pharmaceuticals
undefined
to outperform from buy.
Goldman Sachs
trimmed its 1999 earnings estimate on
J.P. Morgan
(JPM)
down 50 cents to $10 and shaved 80 cents off of its year 2000 estimate to $11.50. Goldman also sliced its third-quarter estimates on the shares to $2.10 from $2.46.
Morgan Stanley raised its rating on
MidAmerican Energy
(MEC)
to outperform from neutral.
Banc of America rolled out coverage on
MBNA
undefined
with a market perform rating.
Goldman Sachs initiated coverage of
MKS Instruments
(MKSI)
with a market outperform rating.
Banc of America began coverage of
Providian
undefined
with a buy rating.
Banc of America lowered its rating on
St. Jude Medical
(STJ)
to a buy from a strong buy.
Salomon Smith Barney analyst Geoff Kieburtz cut his 1999 earnings estimates on
Schlumberger
(SLB)
to $1.05 from $1.10 and sliced numbers on
Petroleum GeoServices
undefined
to 65 cents from 75 cents.
Warburg Dillon Read reduced its year 2000 estimates on
Sprint
undefined
to $1.90 from $2.05, maintaining its buy rating.
PaineWebber
cut its rating on
Sunoco
(SUN)
to attractive from buy.
PaineWebber upped its rating on
TC Pipeline
undefined
to a buy from an attractive.
PaineWebber cut its rating on
Tosco
undefined
at attractive from a buy.
PaineWebber lowered its rating on
Ultramar Diamond
undefined
to a neutral from an attractive.
Donaldson Lufkin & Jenrette upped its rating on
Union Pacific
(UNP)
to a buy from an accumulate.
Goldman Sachs rolled out coverage of
Varian Semiconductor
(VSEA)
with a market outperform rating.
Warburg Dillon Read upped its rating on
Veritas
undefined
to buy from hold and set a price target of $28. The stock closed Thursday at 21.
Credit Suisse First Boston raised its rating on
Viant
undefined
to a strong buy from a buy and set a new price target of 55.
Miscellany
American Online
(AOL)
said former
Sun
(SUNW)
strategist William Raduchel would replace Mark Andreessen as chief tech officer. Andreessen resigned his role but will continue to serve as a part-time strategist for the company.
Leasing Solutions
undefined
said it would be delisted from the
New York Stock Exchange
if it fails to meet the NYSE listing requirements.
Law enforcement officials said wire transfer company
Torfinex
, which is connected to the
Bank of New York
(BK)
money-laundering investigation, seems to have operated illegally in the U.S., channeling millions of dollars out of Russia,
The Wall Street Journal
reported.
Hechinger
, a home-improvement retailer, said it plans to liquidate its business rather than reorganize, the
Journal
reported.
Mallinckrodt
undefined
said its
Oxismart
oxygen monitor received the
FDA's
stamp of approval. The device tracks a patient's pulse rate and oxygen saturation while they're in motion.
Sound Source Interactive
(SSII)
said that Nasdaq had delisted its stock from the Nasdaq Stock Market as of yesterday's close.
