(Updated from 8:36 a.m. ET)

Technology earnings continue to grab the headlines, with Verity ( VRTY) and Sanmina ( SANM - Get Report) taking hits in extended-hours trading after warning about slowing growth. German chemical giant BASF also warned, pressuring overseas stocks.

Earnings Reports & Warnings:

  • American Tower ( AMT) warned of second-quarter loss of 52 cents to 58 cents a share, with full fiscal-year loss between $1.77 and $2.03 a share. Analysts expected a 41-cent loss in the second quarter and a loss of $1.56 for the fiscal year.

  • Avery Dennison ( AVY) warned second-quarter EPS would be 60 cents to 64 cents vs. analysts' 70 cents. In the year-ago quarter Avery had EPS of 73 cents.

  • BASF ( BF) warned second-quarter operating income would be flat, a reversal from earlier company predictions that the quarter would show improvement. BASF said it will reduce capital expenditures by 20% and shutter 10 sites and 14 plants to curb capacity.

  • Carnival ( CCL) reported second-quarter EPS of 32 cents vs. consensus estimate of 30 cents.

  • Countrywide Credit Industries ( CCR) reported first-quarter EPS of $1 a share, beating estimate of 98 cents, and up from year-ago 72 cents.

  • Micrel ( MCRL) said second-quarter EPS would be breakeven to slightly positive, missing analysts' estimate of 5 cents. Second-quarter revenue will be down 31% to 34% from the first quarter.

  • Micron Electronics posted third-quarter loss from continuing operations of 9 cents a share, matching year-ago bottom line. Analysts expected loss of 10 cents. Micron plans to exit the consumer dial-up business in an effort to improve profit margins.

  • Millipore ( MIL) warned second-quarter EPS would be 25 cents to 35 cents, lower than analysts' 54 cents. Second-quarter microelectronics revenue will be 25% to 35% lower than first-quarter revenue.

  • Morgan Stanley Dean Witter posted second-quarter EPS of 82 cents a share, beating estimate of 79 cents, and down from year-ago $1.26.

  • PPL ( PPL) warned second-quarter EPS could miss analysts' expectations of 77 cents. Fiscal 2001 and 2002 EPS should meet expectations, however.

  • Riverstone Networks announced first-quarter pro forma loss of 3 cents vs. year-ago 13-cent loss. Analysts expected 5-cent loss.

  • Transmeta warned second-quarter revenue would fall 40% to 45% from first-quarter revenue of $18.6 million. Slowing shipments to Japan were blamed for the shortfall.

Mergers & Acquisitions:

  • The board of Cabot Oil & Gas ( COG) approved the acquisition of Cody, parent of Cody Energy, in a deal it valued at $230 million in cash and stock.

  • Northrop Grumman ( NOC) extended its tender offer for all the outstanding shares of Newport News Shipbuilding ( NNS) until July 5. As of yesterday, 861,000 Newport shares had been tendered.

    On the Analyst Front:

  • American Express ( AXP) has its 2001 EPS estimates trimmed to $2.05 from $2.10 by Goldman Sachs, moving the estimate in line with Wall Street's consensus. Goldman kept the company on its U.S. recommended for purchase list.

  • Conexant Systems ( CNXT), Linear Technology ( LLTC), LSI Logic ( LSI) and PMC-Sierra ( PMCS) had their 2001 EPS cut by Bear Stearns, which said third-quarter earnings could be worse than the second quarter.

  • Packeteer , Network Peripherals ( NPIX), NMS Communications and MCK Communications ( MCKC) were dropped from coverage by Prudential Securities.

  • UAL ( UAL), parent company of United Air Lines, had its second-quarter estimates slashed to a loss of $4.50 a share by ABN Amro, which previously called for a loss of $1.93 a share. Fiscal 2001 targets were cut to a loss of $10.58 a share vs. the previous estimate of a $7.60 loss. Analysts expect the company to lose $4.14 a share in the second quarter and $9.92 a share for the fiscal year.

    Miscellaneous News:

    • Ball ( BLL) will close Chinese metal can operations and reduce aluminum can manufacturing, taking a charge of $185 million in the second quarter.

    • Boeing ( BA) signed a deal with KLM Royal Dutch Airlines to provide spare parts and maintenance services.

    • Concord EFS priced an offering of 22.53 million shares at $49.50 a share.

    • Heidrick & Struggles ( HSII) will lay off 300 employees, or 13% of its workforce, resulting in one-time charge of $9 million to $10 million. Most of the charge will be in the second quarter.

    • Knight Trading ( NITE) said that John Hewitt, co-head of global equities and president of Knight Securities, and David Shpilberg, operating chief and chief technology officer, will be leaving the company, The company also announced it might cut 6% of its workforce.

    • LSI Logic ( LSI) will be laying off 225 employees, or 3% of its workforce, as part of a cost-cutting measure.

    Today's Earnings:

    • Bed Bath & Beyond ( BBBY) first-quarter EPS expected at 10 cents vs. year-ago 8 cents. After the bell.

    • Cognos first-quarter expected at 3-cent per share loss vs. year-ago 13-cent profit. No time given.

    • Darden Restaurants ( DRI) fourth-quarter EPS expected at 48 cents vs. year-ago 43 cents. After the bell.

    • Manugistics ( MANU) first-quarter EPS expected at 3 cents vs. year-ago 2-cent loss. After the bell. TheStreet.com's Joe Bousquin recently wrote about the company in a story called " Manugistics May Be a Better Prophet Than Oracle."

    • Micron Technology ( MU) third-quarter expected at 15-cent per share loss vs. year-ago 47-cent profit. After the bell.

    • Research in Motion first-quarter EPS expected at 5 cents vs. year-ago break-even. After the bell.

    • Tektronix fourth-quarter EPS expected at 34 cents vs. year-ago 32 cents. After the bell.

    • Tibco Software ( TIBX) second-quarter EPS expected at 4 cents vs. year-ago 4 cents. No time given.

    Doug Kass' Required Reading:

    • A piece from Tony Crescenzi, CEO of BondTalk.com and RealMoney.com columnist, called " Pervasive Pessimism In Media Coverage Of Tech Is Good News "

    • A column from The Washington Post's John M. Berry called " Fed Wonders: Where's the Rebound? "

    On the Economic Lookout:

    ( Forecasts are from Reuters . Times are Eastern. For a longer-term economic calendar and more, see TSC's Economic Databank.)

    • 8:30 a.m.: International Trade for April. Source: Commerce Department. Forecast: -$30.85B. Previous: -$31.17B.

    • 8:30 a.m.: Initial Jobless Claims for the week ended June 18. Source: Labor Department. Forecast: 423,000. Previous: 428,000. Four-week average: Forecast: n.a. Previous: 428,000.

    • 10 a.m.: Philadelphia Fed Index for May. Source: Philadelphia Fed Fed. Forecast: -9.3. Previous: -8.8.

    • 11 a.m.: Treasury buyback. Source: Treasury Department. The Treasury buys securities specified yesterday from dealers.

    The Night Watch

    • Exodus Communications fell 6%, but recovered, after warning about the third quarter and full fiscal year.

    • Sanmina ( SANM - Get Report) dropped 8% after warning that third-quarter EPS would be 10 cents vs. analysts 19 cents. Revenue expected to be between $760 million and $775 million.

    • Verity ( VRTY) fell 14% after announcing fourth-quarter EPS of 25 cents, in-line with estimates and better than the year-ago 20 cents. Verity warned about the new fiscal year, EPS now 85 cents to $1, below analyst EPS forecast of $1.06.

      For an extended take on late-night action, be sure to take a gander at The Night Watch.

    Sources & Definitions: All analyst EPS estimates are from Thomson Financial/First Call, unless otherwise noted. All economic forecasts are from Reuters , unless otherwise noted. All times are Eastern, always. After-hours quotes courtesy of Instinet, unless otherwise noted.