Tuesday, Sept. 14, 1999

Oracle stumbled all night long, falling more than 11% during after-hours trading in heavy volume.
Author:
Publish date:

After-Hours Markets

Last Trades on Island ECN

ORCL: 39 at 5:14 p.m. EDT.

CPWR: 33 1/16 at 4:00 p.m. EDT.

SUNW: 84 at 5:05 p.m. EDT.

MarketXT, formerly Eclipse Trading, offers after-hours trading to retail clients of Morgan Stanley Dean Witter's (MWD) Discover Brokerage and Mellon Bank's (MEL) Dreyfus Brokerage Services. Clients can trade 200 of the most actively traded New York Stock Exchange and Nasdaq Stock Market issues, 6 p.m. to 8 p.m. EDT Monday through Thursday. Island ECN offers trading, mainly in Nasdaq-listed stocks, from 8 a.m. to 5:15 p.m. EDT.

TheStreet.com

updates the most active issues on both MarketXT and Island ECN in Got a Minute? and in the Evening Update.

TSC

also reports how MarketXT's three most active Nasdaq-listed issues finished the Island ECN session

.

--

Eric Gillin

Day Session Report

With the exception of technology issues, stocks took it on the chin today, after a stronger-than-expected retail sales report injected some fear into the market. The

Dow Jones Industrial Average

closed down 120 to 10,910, a notch above its intraday low. The jumpy, tech-laden

Nasdaq Composite Index

managed to close the day up 23.2 points to 2867.

The big European indices closed lower, with France's

CAC

down 19.39 to 4697.39 and Germany's

Xetra Dax

off 45.44, or 0.8%, to 5401.47. London's

FTSE

was down 53, or 0.9%, to 6116.

Asian markets also fell as Hong Kong's

Hang Seng

lost 56.82 to 13,804, and Tokyo's

Nikkei

shed 132.07, or 0.7%, to 17,777.22.

Mergers, Acquisitions and Joint Ventures

Cendant

(CD)

agreed to sell its

Entertainment Publications

division to investment firm

Carlyle Group

for about $345 million, including about $325 million in cash, resulting in a fourth-quarter gain of approximately $140 million. Cendant will retain an approximately 16% stake worth $20 million.

CNBC

, a unit of

General Electric

(GE) - Get Report

, bought a 12.4% stake in electronic communications network

Archipelago

.

CNBC

joins a list of high-profile investors including

Goldman Sachs

(GS) - Get Report

,

E*Trade

(EGRP)

,

J.P. Morgan

(JPM) - Get Report

and

Merrill Lynch

(MER)

. The value of the stake was not disclosed, though E*Trade, Goldman and Merrill paid roughly $20 million to $25 million each for their stakes of about 20% to 25%.

Finnish telecom company

Nokia

(NOK) - Get Report

won a $76 million deal with

U.S. Picus Communications

to supply high-speed data and voice-digital subscriber line, or DSL, broadband network.

Qualcomm

(QCOM) - Get Report

said it expects fourth-quarter earnings to meet or exceed analyst estimates of 87 cents a share. The company also said it is considering a sale of its land-based phone business, citing competition, supply shortages and shrinking profit margins. The company said discussions were under way with several parties and that it hoped to enter an agreement before the end of the year. Qualcomm added that it plans to reduce expenses and increase margins further, which may result in a charge to earnings.

Sauer

(SHS)

said it is in talks to acquire

Danfoss Fluid Power Business

, a Danish manufacturer of hydraulic products. Sauer said the combined entity, named

Sauer-Danfoss

, would have about $860 million in sales and employ about 6,200.

Scottish and Newcastle

, one of the largest pub companies in the U.K., agreed to buy 826 bars, restaurants and hotels from

Greenalls

for $1.8 billion, in an effort to keep pace with fast-growing rivals.

Solectron

(SLR)

said it would buy

Smart Modular Technologies

(SMOD)

in a deal valued at $2 billion in stock.

Credit Suisse First Boston

jacked up its price target on Solectron to 90 from 70.

Earnings/Revenue Reports and Previews

Interstate Bakeries

(IBC)

reported first-quarter earnings of 47 cents a share, in line with the nine-analyst estimate and flat with year-ago earnings per share.

Kroger

(KR) - Get Report

reported second-quarter operating earnings of 24 cents a share, excluding charges. The results were in line with the 14-analyst estimate and up from 19 cents a year ago.

Miller Industries

(MLR) - Get Report

reported first-quarter earnings of 3 cents a share, in line with the two-analyst estimate and down from 6 cents a year ago.

Pier 1 Imports

(PIR) - Get Report

reported second-quarter income of 12 cents a share, in line with the 16-analyst estimate and down from a year ago. The company said same-store sales for the quarter declined 1.8%.

Offerings and Stock Actions

Chesapeake

(CSK)

said its board has authorized the repurchase of up to 2 million common shares over the next year.

Mellon Bank

(MEL)

will ask its board to approve a 25 million share-repurchase program and change its name to

Mellon Financial Corp.

The company said the name change follows research that showed the word "financial" better emphasizes the bank's shift in focus to a wider array of financial services.

E-commerce company

PurchasePro

(PPRO)

looked like an old pro at this market thing on its first day of trading, more than doubling its $12 debut price. The stock closed up 14 3/16, or 118.2%, to 26 1/8.

U.S. Industries

(USI) - Get Report

said its board approved a buyback of up to $100 million in common stock.

Analyst Actions

Credit Suisse First Boston got busy in the oil sector, upgrading

Chevron

(CHV)

to buy from hold and setting a price target of 109. The stock was placing on Credit Suisse's recommended list for its attractive risk/reward quotient. In turn,

Atlantic Richfield

(ARC) - Get Report

got the ax to hold from buy and was cut from the list.

Credit Suisse also downgraded several exploration and production stocks.

Devon Energy

(DVN) - Get Report

was downgraded to a buy from a strong buy, while

Apache

(APA) - Get Report

,

Pogo Producing

(PPP)

,

Stone Energy

(SGY)

and

Vintage Petroleum

(VPI)

were cut to hold from buy.

Merrill Lynch

raised

Estee Lauder

(EL) - Get Report

to accumulate from neutral and set a share price target close to 50.

Salomon Smith Barney

and

Donaldson Lufkin & Jenrette

started coverage of

LaBranche

(LAB)

with a buy rating.

U.S. Bancorp

trimmed

PairGain's

(PAIR)

third-quarter estimates to a loss of 3 cents from a profit of 2 cents a share.

J.P. Morgan

cut

3Com

(COMS)

to market performer from buy following news that the company will spin off its

Palm Computing

unit, saying 3Com's remaining businesses lack any significant growth drivers for the foreseeable future.

Miscellany

Delta Shuttle

, a unit of

Delta Air Lines

(DAL) - Get Report

will introduce a fleet of 16 new

Boeing

(BA) - Get Report

737-800 Stage III Aircraft. Delta said the fleet will be quieter and burn less fuel.

National Semiconductor

(NSM)

said it would retain ownership of its manufacturing plant in Greenock, Scotland, citing a surge in demand for analog products. In October, the company had said it would seek out investors to spin off the operation independently. National Semiconductor also said it was poised for very solid profits in its second quarter.

Silicon Graphics

(SGI)

said it has nearly doubled the estimated number of employees it will lay off, to 3,000. The company said it expects to turn a profit in the second quarter due to a restructuring plan, but warned that the recent

departure of Rick Belluzzo could hurt its bottom line.

Bank stocks may be ripe for a beating according to today's Heard on the Street column in

The Wall Street Journal

. Bank stocks have fallen 11% since the most recent rate increase, compounding the existing problems of slower loan growth and other revenue challenges. Bigger problems may lie ahead, the column says, as a result of declining commercial-loan quality and rising interest rates weighing down securities portfolios.

Federal prosecutors charged

Princeton Economics International

Chairman Martin Armstrong with securities fraud for allegedly stealing $1 billion from Japanese investors. Prosecutors said that Princeton Economics, which isn't affiliated with the

Ivy League

university, hid hundreds of millions of dollars in trading losses in 300 Japanese investors' accounts. Officials claim that Princeton, which told investors that their accounts would be individually handled and conservatively invested, combined the accounts, applying money from one to the interest payments on another. Armstrong could serve up to 10 years in jail if convicted.

Thai Airways International

is seeking to obtain $576 million in new 12-year foreign currency loans to finance the acquisition of five Boeing aircraft.

Oddenda

Proving that where there's a will there's a way, a resourceful Waukesha, Wis., woman with three prior convictions for drunken driving, tricked a court-ordered ignition interlock system on her car by asking her 12-year-old son to breathe into the device so she could drive. Kimberly A. Beier, 39, was arrested after employees at the local SuperSaver told her to save her vodka money and instead called the police. When police questioned Beier's 16-year-old daughter about whether she helps out when mom has car trouble, the daughter responded, "Almost always, unless my brother does."