Wednesday, Sept. 22, 1999
After-Hours Markets
Island ECN offers trading, mainly in Nasdaq-listed stocks, from 8 a.m. to 8 p.m. EDT. Prior to September 15, 1999, Island offered trading from 8 a.m. to 5:15 p.m. EDT
.
--
Eric Gillin
MarketXT, formerly Eclipse Trading, offers after-hours trading to retail clients of Morgan Stanley Dean Witter'sundefinedDiscover Brokerage and Mellon Bank'sundefinedDreyfus 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.
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
.
Day-Session Report
In the close, the major stock indices polished off the trading session in opposite directions after spending most of the day in the red. The
Dow Jones Industrial Average
closed down 74 at 10,524.07, while the
Nasdaq Composite Index
locked itself in positive territory to finish up 37 to 2858.1.
The big European indices finished the trading session with losses. France's
TheStreet Recommends
CAC
skidded 44.81 to 4568.12, and Germany's
Dax
slipped 44 to 5238.76, while London's
FTSE
declined 43.40 to 5913.00.
In Asia, Japan's
Nikkei
plummeted after its recent strong performance, finishing the trading session down 607 to 17,325.76, while Hong Kong's
Hang Seng
closed down 232.84 to 13,187.62.
Mergers, Acquisitions and Joint Ventures
AK Steel
(AKS) - Get AK Steel Holding Corporation Report
said it has upped the number of shares that
Armco
undefined
stockholders would receive in their planned merger. The share increase boosts AK Steel's stock value to $7.50 per share of Armco.
Cisco Systems
(CSCO) - Get Cisco Systems Inc. Report
said it has inked an agreement to purchase privately held Internet software maker
WebLine Communications
in a stock deal valued at $325 million.
City National
announced its plans to acquire
Pacific Bank
undefined
in a deal valued at $153 million.
Global Crossing
(GBLX)
said it has received its shareholders' stamp of approval for its planned $9 billion acquisition of
Frontier
(FRO) - Get Frontline Ltd. Report
. Frontier shareholders are set to vote Thursday on the transaction.
Enron
undefined
said that its Energy Services division forged a $1 billion deal with
Owens Corning
undefined
to supply energy to 20 fiberglass production facilities. According to the 10-year agreement, Enron would support all of Owens's electricity and natural gas and develop and finance energy infrastructure projects. In addition, Enron would create hedging plans to protect Owens from price volatility associated with energy markets.
MedImmune
undefined
said it has forged a $440 million stock deal to acquire
U.S. Bioscience
(UBS) - Get UBS Group AG Registered Report
in an effort to boost its cancer-drug product line. According to the terms, MedImmune would exchange 0.15 of a share for each share of U.S. Bioscience's 29.8 million outstanding shares.
Union Carbide
(UK)
said its shareholders of record Oct. 4 would vote on its planned merger with
Dow Chemical
during a special meeting Dec. 1.
Xerox
(XRX) - Get Xerox Holdings Corporation Report
announced its plans to acquire
Tektronix
undefined
Color Printing and Imaging Division for $950 million. Merrill Lynch downgraded shares of Tektronix to a buy from a neutral.
Earnings/Revenue Reports and Previews
Cable Design
undefined
posted fourth-quarter earnings of 47 cents a share, beating the seven-analyst estimate of 40 cents and the year-ago 40 cents.
Cintas
(CTAS) - Get Cintas Corporation Report
reported first-quarter earnings of 38 cents a share, in line with the 11-analyst estimate and up from the year-ago 33 cents.
Dean Foods
(DF) - Get Dean Foods Company Report
reported first-quarter earnings of 70 cents a share, beating both the 10-analyst estimate of 63 cents and the year-ago 52 cents.
Herman Miller
(MLHR) - Get Herman Miller, Inc. Report
reported first-quarter earnings of 43 cents a share, beating both the seven-analyst estimate of 41 cents and the year-ago 39 cents.
Morgan Stanley Dean Witter
undefined
reported third-quarter earnings of $1.65 a share, beating both the
First Call/Thomson Financial
14-analyst estimate of $1.63 and the year-ago $1.01.
National Discount Brokers
undefined
reported first-quarter earnings of 2 cents a share, beating the two-analyst estimate of break-even results and the year-ago loss of 4 cents.
National Service Industry
undefined
posted fourth-quarter earnings of $1.07 a share, beating the four-analyst estimate of 83 cents and the year-ago 72 cents.
Rowe
undefined
posted third-quarter earnings of 23 cents a share, beating the four-analyst estimate of 22 cents and the year-ago 17 cents.
3Com
(COMS) - Get ComSovereign Holding Corp. Report
after the close posted first-quarter earnings of 33 cents a share, well ahead of the 26-analyst estimate of 24 cents and above the year-ago 24 cents.
Vans
undefined
reported first-quarter earnings of 42 cents a share, beating both the eight-analyst estimate of 41 cents and the year-ago 35 cents.
Worthington Industries
undefined
posted first-quarter earnings of 27 cents a share, beating the five-analyst estimate of 22 cents and the year-ago 9 cents.
Offerings and Stock Action
Morgan Stanley priced
Devon Energy's
(DVN) - Get Devon Energy Corporation Report
9.9 million-share offering at $40.50 a share.
Credit Suisse First Boston
priced
E.piphany's
undefined
4.15 million-share IPO top-range at $16 a share.
Goldman Sachs
priced
Kana Communications'
undefined
3.3 million-share IPO top-range at $15 a share.
Analyst Actions
Merrill Lynch analyst Candace Browning slashed her estimates on a host of airline stocks, citing Hurricane Floyd and slow revenue. September-quarter and fiscal 1999 earnings estimates on
AMR
(AMR) - Get Alpha Metallurgical Resources Inc. Report
were sliced to $1.70 from $2 and to $4.50 from $4.80, respectively, while
Continental's
(CAL) - Get Caleres Inc. Report
were cut to $1.45 from $1.70 and $4.90 from $5.40 respectively.
Delta's
(DAL) - Get Delta Air Lines Inc. Report
September-quarter and fiscal 1999 earnings estimates were lowered to $1.90 from $2.10 and $6.65 from $6.75 respectively, while
US Airways'
(U) - Get Unity Software Inc. Report
estimates for the same periods were cut to a loss of 50 cents a share from a 20-cent loss and to a profit of $1.85 per share from $2.30.
Browning also sliced her fiscal 1999 estimate on
Northwest
undefined
to $3.30 from $3.45 and lowered both full-year and September-quarter estimates on
United
(UAL) - Get United Airlines Holdings Inc. Report
to $9.60 from $10 and $3.60 from $3.75, respectively.
Merrill Lynch started coverage of
Amtel
(ATML)
with intermediate accumulate, long-term buy ratings and
Microchip Technology
(MCHP) - Get Microchip Technology Incorporated Report
with intermediate and long-term accumulate ratings.
Credit Suisse First Boston upped its rating on
Apache
(APA) - Get APA Corporation Report
to a buy from a hold.
Deutsche Banc Alex. Brown
cut its rating on
BE Aerospace
(BEAV)
to market perform from buy.
J.P. Morgan
began coverage of
Blockbuster
(BBI) - Get Brickell Biotech Inc. Report
with a buy rating.
Deutsche Banc Alex. Brown upgraded shares of
Broadcom
undefined
to a strong buy from a buy.
Banc of America initiated coverage of
Catalina Marketing
undefined
with a strong buy rating.
Banc of America started coverage of
DoubleClick
undefined
with a buy rating and a price target of 140.
PaineWebber
upgraded
Chevron
(CHV)
to attractive from neutral.
Warburg Dillon Read
slashed
Columbia/HCA
(COL)
fiscal 1999 per-share earnings estimates to $1.28 from $1.32.
Goldman Sachs added
Eli Lilly
(LLY) - Get Eli Lilly and Company Report
and
Merck
(MRK) - Get Merck & Company Inc. Report
to its recommended list.
Donaldson Lufkin & Jenrette
hammered its rating on
Endesa Chile
(EOC)
to market perform from buy.
Credit Suisse First Boston raised its fiscal 2000 earnings estimates on
Fairchild Semiconductor
undefined
to $1.20 from 57 cents a share and upped its price target to 36 from 32.
Merrill Lynch upgraded shares of
Ionics
undefined
to accumulate from neutral.
Warburg Dillon Read rolled out coverage of
ITT Industries
(IIN) - Get IntriCon Corporation Report
with a strong buy rating.
Jefferies & Co.
sliced its rating on
Lennar
(LEN) - Get Lennar Corporation Class A Report
to accumulate from buy.
J.P. Morgan raised its rating on
Mandalay Resort Group
(MBG)
to buy from market perform.
SG Cowen hammered its rating on
Maxwell Technologies
(MXWL) - Get Maxwell Technologies, Inc. Report
to a neutral from a strong buy.
CIBC World Markets
began coverage of
MCM Capital Group
undefined
with a buy rating.
Merrill Lynch upped its intermediate-term rating on
National Golf
undefined
to buy from accumulate.
Warburg Dillon Read downgraded
PepsiCo
(PEP) - Get PepsiCo Inc. Report
to hold from a strong buy.
Goldman Sachs began coverage of
Pfizer
(PFE) - Get Pfizer Inc. Report
,
Pharmacia & Upjohn
(PNU)
, and
American Home Products
(AHP)
with market outperform ratings.
Goldman Sachs initiated coverage of
Schering-Plough
(SGP)
, and
Bristol-Myers Squibb
(BMY) - Get Bristol-Myers Squibb Company Report
with market performer ratings.
Goldman Sachs sliced its rating on
Sinclair Broadcast Group
(SBGI) - Get Sinclair Broadcast Group Inc. Report
to market performer from its recommended list. Merrill Lynch and Morgan Stanley have also downgraded the stock.
Goldman Sachs started coverage of
TD Waterhouse
undefined
with a market outperform rating.
Goldman Sachs rolled out coverage of
Warner-Lambert
undefined
with a market perform rating.
Morgan Stanley upped its rating on
USFreightways
undefined
to strong buy from outperform.
Miscellany
Amazon.com
(AMZN) - Get Amazon.com Inc. Report
announced its plans to sell music that can be downloaded over the Internet. The company expects to offer the product by the year 2000.
CDnow
undefined
and
Columbia House
have chosen Scott Flanders as to act as chairman and CEO after their planned merger is completed. The merger is a joint venture between
Sony
undefined
and
Time Warner
(TWX)
.
Nextlink Communications
undefined
said that it has tapped Daniel Akerson to become its chairman and CEO.
The
New York Stock Exchange
said it sold a regular seat on its exchange for $2.6 million, a $100,000 discount to the Aug. 20 record sale of $2.7 million. According to the NYSE, two seats have been sold since it unveiled plans for an IPO, which would come no earlier than July 2000.
Phelps Dodge
(PD) - Get PagerDuty Inc. Report
has upped its bid for
Asarco
(AR) - Get Antero Resources Corporation Report
and
Cyprus Amax Minerals
(CYM)
to nearly $2.8 billion in cash and stock, confirming a report in
The Wall Street Journal
. In a separate report,Cyprus Amax said it would examine Phelps' revised offer.
Philip Morris
(MO) - Get Altria Group Inc. Report
said it refuses to settle in an enormous lawsuit brought on today by the
Justice Department
against the tobacco industry.
United Technologies
(UTX) - Get n.a. Report
said it would still manage to see 17% 1999 earnings growth despite assuming a $1.15 billion restructuring charge for slashing 14,500 jobs. Chairman George David said the company assumed $75 million in charges in the first two quarters and would absorb roughly $750 million in the third quarter. David said the balance would be recorded in the fourth quarter.
