EMC

(EMC)

was up 4% in early trading.

J.P. Morgan Chase

cut its earnings estimates and price target for the data storage company, a day after EMC shares rose on rumors of a takeover by

IBM

(IBM) - Get Report

.

Morgan cut its first-quarter earnings estimate for EMC to 19 cents per share from 21 cents and lowered the forecast for 2001 to 90 cents from $1.02. Morgan also cut its 12-month price target to $45 from $100. Morgan said the issue is when, not if, EMC will lower guidance.

IBM

(IBM) - Get Report

was up 1.3%.