SPZ 1286.30 -4.7
MW 04:25 10-YEAR TREASURY NOTE GAINS 2/32 TO YIELD 5.78%.
MW 04:25 30-YEAR BELLWETHER BOND RISES 2/32 TO YIELD 5.98%.
MW 04:24 EURO OFF 0.5% AGAINST DOLLAR TO 1.04570.
MW 04:24 DOLLAR GAINS 0.6% AGAINST JAPANESE YEN TO REACH 104.41.
Dollar Higer, Tokyo Stocks Plunge
TOKYO (AP) -- The U.S. dollar gained against the yen today on uncertainty about Japan's economic recovery. Tokyo share prices fell.
The dollar bought 104.42 yen as of late today, up 0.14 yen from its level late Wednesday and also higher than its late New York level of 103.95 yen overnight. It ranged during the day from 103.72 yen to 105.15 yen.
U.S. stocks to watch.............
Standard & Poor's announced after the close of trading that Analog Devices (ADI: news, msgs) is slated to replace Ameritech (AIT: news, msgs) in the S&P 500 Index ($SPX: news, msgs), on a date to be announced. SBC Communications (SBC: news, msgs), an S&P component, is acquiring Ameritech, pending regulatory approval. Analog Devices closed down 2 7/16 to 55 1/2 and Ameritech closed off 15/16 at 63 3/16.
After the market closed, Arrow International (ARRO: news, msgs) announced that the company's fiscal fourth quarter earnings reached $11.5 million, or 50 cents a share, directly in line with Wall Street estimates. In the year-ago quarter, earnings came in at $10 million, or 43 cents a share. Sales at the cardiac care equipment maker shot up 20 percent to $77.7 million from $64.6 million. Shares closed up 1/4 at 24 1/4.
Darden Restaurants (DRI: news, msgs) announced after the market closed that net income in the first quarter increased to $47.3 million, or 35 cents a share compared to the $35.2 million, or 24 cents earned in the year-ago quarter. Analysts estimates came in at 31 cents. The casual dining operator's sales increased to $929.4 million driven by strong restaurant sales at Olive Garden and Red Lobster. Shares closed up 1/4 at 18 1/4.
Goodyear Tire & Rubber Co. (GT: news, msgs) warned, after the market closed, that it expects third-quarter earnings between $80 million to 90 million, or 50 to 56 cents a share, excluding charges. Analysts estimates called for a 53-cent profit. In the same period a year ago, the No. 1 tire manufacturer earned $185 million, or $1.17 a share. Shares closed down 1 3/16 to 44 1/4. On Wednesday, the company's shares flattened almost 10 percent after J.P. Morgan analyst David Bradley sliced the rating and lowered earnings estimates due to uncertainty over the company's long-term growth prospects. See full story and related story.
Intuit (INTU: news, msgs) shares slid in after-market trading Thursday after the software company said, after the market closed, that its chief executive will step down. Bill Harris, who is credited with helping Intuit move a from desktop software company to an Internet-based business, said he will work as an entrepreneur. Shares of Intuit -- the maker of Quicken, TurboTax and other popular software products -- closed off 2 11/16 at 100 9/16, but dropped to 96 on the Island trading network.
Prime Hospitality (PDQ: news, msgs) warned after the market closed that third-quarter earnings will be 2 cents lower than the consensus estimate of 30 cents a share. The company blamed the shortfall on the impact of Hurricane Floyd which affected hotel bookings throughout the Eastern seaboard. Shares closed down 1/8 to 8 3/4 ahead of the news.
Union Carbide (UK: news, msgs) announced after the market closed that third-quarter earnings have been negatively impacted by higher-than-expected raw materials prices, especially its principal feedstock ethane. The consensus estimate is for a 56-cent profit, according to First Call. Financial results for the chemical giant are expected Oct. 25. In August, Dow Chemical and Union Carbide announced plans to merge in a $11.6 billion stock-for-stock deal. Shares closed up 1/8 at 55.
After the market closed, Watsco (WSO: news, msgs) said Hurricane Floyd and cooler weather across the country will result in third-quarter earnings below analysts' expectations of 44 cents a share. The company is the largest distributor of heating and cooling equipment. Shares closed off 11/16 at 12 15/16.
U.S. decliners for Thursday
The Forest and Paper products index ($FPP: news, msgs) was chopped 4.8 percent. Georgia-Pacific (GP: news, msgs) shares lost 13 percent, falling 5 13/16 to 38 13/16 after both Brown Brothers Harriman Co. and PaineWebber gave gloomy forecasts for the company's third-quarter earnings. Also, GP's chief financial officer announced he will resign, effective Nov. 1, to pursue other investment opportunities. See Screaming Sector.
Ciprico (CPCI: news, msgs) shares fell 2 5/16 to 10 3/8 after the company said a decline in orders from a large customer will leave the fourth-quarter earnings at or below expectations. The company said that it'll earn 11 to 15 cents a share, compared with Wall Street projections of 15 cents.
Egain (EGAN: news, msgs) shares opened at 34 1/2, almost three times its $12 offering price, and closed at 23. A provider of customer service infrastructure solutions for e-retailers offered 5 million shares. See IPO Report.
Gateway (GTW: news, msgs) shares tumbled 5 1/4 to 43 5/16 after Merrill Lynch spoke cautiously of the company's near-term outlook. The broker believes pricing and margin pressures could surface, hampering unit volume growth and aftermarket sales growth. See full story.
Linc Capital (LNCC: news, msgs) shares plunged 15/16, or 16 percent, to 5 after the company warned that it expects to lose between 20 and 26 cents a share, rather than reporting the 18-cent profit that analysts had expected. The company has retained U.S. Bancorp Piper Jaffray to consider steps to boost the stock price.
MindSpring (MSPG: news, msgs) lost 5 1/2 to 27 3/8 and EarthLink (ELNK: news, msgs) fell 1 1/8 to 42 3/8 after announcing plans to join forces. The new company, to be known as EarthLink, will be the second-largest provider of Internet access in the U.S., with an estimated base of over 3 million members. The market capitalization of the new entity will approach $3 billion. See full story and related story.
Rite Aid Corp. (RAD: news, msgs) shares lost 14 percent after the company's stock rating was sliced by Raymond James to "accumulate" from "buy." The drug store chain was sued by Florida for allegedly overcharging 29,000 uninsured pharmacy customers in that state. Shares declined 2 to 12. See full story.
U.S. advancers for Thursday
Aironet Wireless (AIRO: news, msgs) shares gained 11/16 to 20 5/8 on speculation the company will announce a deal with a PC maker for wireless laptops. Chief Financial Officer Richard Holmes declined to comment. Aironet makes wireless LAN connections incorporated into PC-based systems and handheld data terminals.
CNet (CNET: news, msgs) shares jumped 5 7/16 to 48 3/8, a gain of 13 percent, after Deutsche Bank Alex. Brown raised its rating on the Internet company to "strong buy" from "market perform." Analyst Larry Marcus sees the stock hitting 75. See full story.
Cable Design Technologies (CDT: news, msgs) shares jumped 1 1/16 to 23 1/2 after the company posted net income of $13.4 million, or 47 cents a share, excluding charges. Analysts had projected a 40-cent profit, according to First Call. The company earned $12.4 million, or 40 cents, in the same period a year ago. The company attributed the improved earnings to strength in its North American operations and strong network product sales. Cable Design makes cooper, fiber-optic and composite cables used to connect electronic networks.
Global Crossing (GBLX: news, msgs) shares climbed 11/16 to 25 1/16 and Frontier (FRO: news, msgs) shares rose 1 to 49 7/8 after shareholders approved the two companies' pending merger. Global Crossing's stock will replace Frontier in the S&P 500 Index ($SPX: news, msgs).
Net2Phone (NTOP: news, msgs) rang up 3 7/16, or 6 percent, to 58 7/8 after USB Piper Jaffray initiated coverage of the stock with a "strong buy" rating and set a $85 price target. Net2Phone, spun-off by long-distance carrier IDT Corp. (IDTC: news, msgs), is an Internet telephony company. IDT shares rose 7/16 to 23 11/16.
Stanford Telecommunications (STII: news, msgs) gained 2 9/16 to 32 after the company said it sold its Telecom Component Products division to Intel (INTC: news, msgs). The value of the deal was not disclosed in the press release. Stanford signed a definitive agreement on July 22 to be acquired by Newbridge Networks (NN: news, msgs). Intel fell 5 5/16 to 77 1/2 while Newbridge shares dipped 3/8 to 26 1/8.
ZDNet (ZDZ: news, msgs) shares increased 1 1/8 to 21 11/16 on news of a multi-year, pan-European agreement with QXL.com to providing co-branded auction sites for online buyers and sellers of technology products and services.
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