15:47 ET AgriBioTech Inc (ABTX) 13 1/16 +3 1/18 (+31%): Appears shorts being squeezed out of agribiotech stock. Issue has fallen sharply over past
several weeks amid accounting concerns and reduction in earnings estimates. Volume 2.6 mln (vs avg. daily turnover of 1.27 mln); intraday range 10 3/16 to
13 1/16. Short interest ratio more than 5 days. Chart
15:08 ET Late-Day Update: Leading internet names extend gains: YHOO +5 3/4, AMZN +5 3/4, CMGI +5 11/16... Gillette (G 39 15/16 -5 1/16)
continue to slide amid estimate cuts... Greenspan testimony sinks U.S and Latin American stocks: Dow -27, Nasdaq -3, Brazil -2.9%, Argentina -2.4%.
Fed chairman downplays coordinated rate cut talk... Ericcson (ERICY 19 3/4 -2) earnings warning expected.
14:32 ET Gillette Company (G) 39 7/8 -5 1/8 (-11%): --Update-- Prudential lowers Q3 estimate by 2 cents to $0.38 and cuts Q4 forecast by 2 cents to
$0.39. Sales are expected to decline 2% due to weakness in international business.
14:24 ET Advanced Fibre Communications (AFCI) 8 1/18 +9/16 (+7%): Volpe Brown Whelan maintains "neutral" rating, but lowers earnings estimates
on manufacturer of telecommunications systems due to continued uncertainties in the business, especially in international markets; reduction in estimates also
reflect the winding down of sales to GTE, once one of AFCI's largest customer; lowers FY98 EPS from $0.45 to $0.32 a share and FY99 EPS from $0.67
to $0.46 a share. Based on First Call mean, AFCI was expected to earn $0.37 in 1998 and $0.56 in 1999.
13:40 ET Gillette Company (G) 40 5/8 -4 3/8 (-10%): --Update-- After talking to management, Prudential expects company to report flat
year-over-year earnings in Q3. Based on First Call survey of 11 analysts, G was expected to earn $0.42 a share for the 3rd qtr vs yr-ago net of $0.38.
13:16 ET Greenspan Testimony: In House Banking Committee prepared testimony, Federal Reserve chairman makes no mention of interest rates. News
putting pressure on the Dow (+10).
13:12 ET LM Ericsson (ERICY) 19 13/16 -1 15/16 (-9%): Several analysts voicing concerns that slowing Asian sales could cause wireless
communications company to miss its qtr. ERICY expected to report Q3 results around Oct. 23. ERICY has missed its number the past two quarters.
12:49 ET Crude Estimates Cut: CIBC Oppenheimer lowered forecast for the average price of U.S. benchmark crude oil in 1998 from $15.50 a barrel
to $14.75 (-4.8%) and in 1999 from $18.00 a barrel to $16.50 (-8.3%). Firm slashed earnings estimates for Atlantic Richfield (ARC) and Phillips (P). For
example, ARC's 1998 estimate lowered 11.6% to $1.90 and 1999 cut 19.7% to $3.05. Firm downgraded ARC from "strong buy" to "buy" and reduced P
from "strong buy" to "hold."
12:22 ET Midday Movers: Tellabs (TLAB +45 +3 3/4); Motorola (MOT 47 +3 1/16), upgrade; Lucent (LU 76 1/2 +2), upgrade; Charles Schwab
(SCH 39 13/16 +2 5/8), pre-announces strong earnings; Panamsat Corp (SPOT 43 19/32 +3 15/32), successfully launches satellite; Ericsson (ERICY 20
1/8 -1 5/8) and Nokia (NOK/A 79 7/8 -2 3/16), rumors ERICY will issue earnings warning.
12:10 ET Gillette Company (G) 41 3/4 -3 1/4 (-7%): According to sources, company informed Prudential analyst that it does not expect to make its
quarter. Prudential has not commented on the rumor. G expected to report Q3 results in mid-October.
12:02 ET Internet Stocks Rally: Yahoo (YHOO +5), Amazon (AMZN +3 1/4), Lycos (LCOS +1 3/4), CMG (CMGI +2), America Online (AOL
+2), broadcast.com (BCST +2 1/2).
11:59 ET Gillette Company (G) 41 15/16 -3 1/16 (-7%): Shares of consumer goods company under pressure. Hearing rumors stock reacting to analyst
earnings cut. However, unconfirmed at this time. Volume 4.6 mln. Intraday Chart
11:24 ET Latin American Markets Reverse: Amid rumors IMF is ready with credit line or rescue package for Brazil, the Bovespa has rallied 7.7%.
News also helping Mexican (+13%) and Argentine markets (+2.5%). After advancing 13 5/8 or 23% yesterday, shares of Brazilian telecom Telebras (TBR
80 +7 7/8) up another 11%. Also extending rally are ADRs of Mexican broadcaster TV Azteca (TZA +13%), Brazilian bank Unibanco (UBB +10%) and
Brazilian power company Companhia Paranaense de Energia (ELP +6%).
10:54 ET Panamsat Corp (SPOT) 43 1/2 +3 3/8 (+8%): Issue rallying on news company successfully launched PAS-7 satellite. SPOT shares tumbled
from the $49.50 level on August 27 after explosion of rocket carrying Galaxy IV satellite. Salomon Smith Barney reiterates "buy" rating. Chart
10:45 ET Rocky Mountain Internet (RMII) 9 7/8 +1/2 (+5%): Internet access provider enters letter of intent to purchase DataXchange Network, Inc.,
in a stock transaction for 535,000 shares of RMI common stock, with a reduction in the number of shares in the event that certain revenue benchmarks are
not met. Volume 64,000.
10:38 ET CBT Group PLC (CBTSY) 33 1/4 +2 1/4 (+7%): Shares of interactive education software company making modest recovery on heels of
two-session, 24 point retreat. Stock fell in reaction to analyst concerns regarding European sales. Yesterday, BT Alex. Brown says fully expects company
to meet Q3 and FY earnings estimates of $0.22 and $0.87, respectively. However, now believes that the probability of meaningful upside surprise is low.
Firm reduced price target of $44-$50.
10:26 ET Charles Schwab Corp. (SCH) 40 1/8 +2 15/16: --Update-- Stock has risen 8% on volume of 785,000 shares after company forecast
better-than-expected Q3 results. For look at growth outlook and valuations of online brokers, see yesterday's Story Stock.
10:22 ET Immunex Corp. (IMNX) 58 1/8: Stock halted today as company awaits FDA advisory panel decision on rheumatoid arthritis drug Enbrel.
FDA not expected to make a final decision by Nov. 7, but it typically follows the recommendation of the panel.
10:18 ET Providian Financial Corp (PVN) 77 7/8 +4 15/16 (+7%): As stated in Story Stock yesterday, will be difficult for fund managers to ignore this
stock after company issued rosy growth forecast yesterday. Stock has tacked on an additional 11% since our comments.
10:11 ET RealNetworks Inc. (RNWK) 25 1/8 +5 1/2 (+28%) : --Update-- Issue rallying on news company has found bodyguard to help protect
technology from Microsoft. This morning, RNWK announced Intel will work with RealNetworks to promote and market company's RealSystem G2
software. RNWK shares tumbled from late-July price of $44 after company accused Microsoft of strong-arm tactics. RNWK's CEO told a Senate
Judiciary Committee that Microsoft was purposely taking actions that prevented RNWK software from functioning properly. Volume 573K; intraday range
22 13/16 to 25 7/8.
10:02 ET Cypress Bioscience (CYPB) 2 1/16 +11/32 (+20%): FDA will review the company's application to extend labeling of its Prosorba column for
use in rheumatoid arthritis (RA) at its October 29, 1998 meeting. Volume 58K; intraday range 17/8 to 2 7/32.
09:58 ET Brazil Opens: Bovespa experiencing some profit-taking following 18% advance yesterday. Index trading 2.11% lower this morning.
09:51 ET Teledata Communications Ltd. (TLDCF) 14 5/8 +1 1/4 (+9%): --Update-- Issue advances on announcement has agreed to be acquired by
ADC Telecommunications (ADCT 24 11/16 +13/16) for $15.75 per share or approximately $200 million in cash.
09:44 ET Motorola Inc (MOT) 45 1/4 +1 5/16: Dillon Read upgrades issue from "hold" to "buy."
09:43 ET Point of Sale Ltd. (POSIF) 4 5/8 +1/8: CE Unterberg Towbin upgrades enterprise software company from "buy" to "strong buy" as solid
business momentum continues and fundamentals remain intact; sets a price target of $8 a share.
09:39 ET Market Open: MSFT +1/16, DELL +1/8, RFMD +1 7/8, COMS +9/16, LU +2 1/2, TLAB +1 1/4, CIEN +5/16. Internet stocks: RNWK
+3 5/8, YHOO +1 1/2, AOL +9/16, AMZN +1 5/8. Online Brokers: SCH +1 13/16, AMTD +1, EGRP +1/16. Dow +40, Nasdaq +8, S&P +8,
Russell 2000 +1.1, SOX +1.75.
09:22 ET RealNetworks Inc. (RNWK) 19 5/8: Stock indicated 4 1/2 pts higher on news that Intel will license Streaming Web Video software
technology to RealNetworks to improve the quality of video on the Internet and help the company fend off a challenge from Microsoft. (Press Release)
09:16 ET Charles Schwab Corp (SCH) 37 3/16: Company expects to report Q3 net of $0.33 to $0.35, compared to the $0.30 a share forecast by
analysts. Cites heavy trading volumes, strength of core domestic business, absence of any international proprietary trading, and continued focus on staffing
levels, expenses, and risk management.
09:08 ET 3Com Corp (COMS) 30 5/16: Prudential Securities upgrades issue from "hold" to "accumulate."
09:05 ET CIENA Corp (CIEN) 13: Telecom equipment maker says could have evidence that a competitor may have committed "legally questionable"
activities in an effort to sabotage its merger with Tellabs, the Washington Post reported. Apparently, CIEN has traced a questionable e-mail message back
to Lucent Technologies. Also believes short-sellers planted stories in attempt to drive price down. Company presenting evidence to the SEC. CIEN
indicated 1/4 higher.
08:59 ET Verity Inc. (VRTY) 9 1/16: Provider of knowledge retrieval solutions reported Q1 net of $0.10 a share, 4 cents above the First Call mean, vs
year-ago loss of $0.89 a share. Revenues increased 1% to $13.2 mln. VRTY shares indicated 3/8 higher.
08:57 ET Lucent Technologies (LU) 74 1/2: Following yesterday's 2 3/8 pt retreat, PaineWebber raising issue from "accumulate" to "buy." Calls sell-off
unwarranted. Firm says business still strong; company holding conference call tomorrow. PaineWebber's price target is $110. Issue also reiterated "strong
buy" at Prudential and initiated "buy" at Salomon Smith Barney.
08:51 ET General Electric (GE) 78 1/16: Dow component's shares trading 2 pts higher on Instinet after Merrill Lynch upgraded from near-term
"accumulate" to "buy" and set a price target of $100. Also names GE its "focus 1 stock" of the week. Says company has historically expanded at twice the
rate of the S&P. Expects this margin to widen.
08:49 ET 3Com (COMS) 30 5/16: Networker's shares leapt 2 7/8 pts yesterday on renewed Intel takeover rumors. COMS shares indicated 5/8 higher
this morning.
08:44 ET RF Micro Devices Inc. (RFMD) 16 7/8: Supplier of high-volume, low-cost, proprietary radio frequency integrated circuits expects Q2
earnings of $0.09-$0.10 a share, ahead of the First Call mean estimate of $0.06 a share. Company attributes the strong results to higher than anticipated
wafer availability from its primary GaAs HBT supplier. RFMD shares indicated 3 1/4 pts higher.
08:39 ET Teledata Communications Ltd. (TLDCF) 13 3/8: Telecom equipment maker agrees to be acquired by ADC Telecommunications (ADCT 23
7/8) for $15.75 per share or approximately $200 million in cash.
08:35 ET Market Indication: Current level of S&P futures contract suggest Dow will open flat to slightly higher... Major overseas markets mostly higher:
France +1.4%, Germany +1.7%, Hong Kong +1.6%, Singapore +4.9%, Japan -0.2%.... 30-yr bond +3 ticks.
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