Markets & Finance

GE Reportedly Will Cut 7,000 Jobs


General Electric (GE) is reportedly to reduce headcount by 7,000 in 2002. Earlier, Olstein Financial Alert Funds' Robert Olstein says GE will stumble before the year is out, and shares should be valued around $25, according to press reports.

Adolor (ADLR) inked a pact with GlaxoSmithKline for exclusive worldwide development and commercialization of alvimopan. Pacific Growth reiterates strong buy.

AG Edwards upgraded Ensco (ESV) to strong buy from hold.

AT&T Wireless (AWE) is in talks to be bought by Cingular Wireless, which is 60% owned by SBC Communications and 40% by BellSouth, according to press reports. Robertson Stephens says if the companies truly are in talks, the combination is very logical.

CS First Boston reiterates its buy rating on Integrated Circuit (ICST), saying Q4 concerns are overblown.

Merrill reportedly downgradedCANTV (VNT).

Salomon SB upgraded Cobalt (CBZ) to buy from outperform. On Friday the company forecast Q1 EPS from operations of $0.17-$0.19, and raised the $0.50 2002 guidance to $0.75-$0.90.

The Federal Centers for Medicare and Medicaid Services revoked Specialty Labs (SP) CLIA certificate, canceling approval to get payments. USB Piper downgraded to underperform from market perform.

Citigroup (C) posted lower than expected first quarter EPS of $0.74 vs. $0.71 on a 4.6% revenue rise.

AOL Time Warner (AOL) shares rose on an article in the latest issue of Barron's. Seabreeze Partners' Doug Kass, who has long been shorting AOL, told Barron's that the stock has been beaten down so much that its valuation is now powerfully attractive; the stock has shot at $35.

Shaw Group (SGR) reports second quarter EPS of $0.51, vs. $0.28, on 66% sales rise.

Longs Drug Stores (LDG) reports preliminary 7.5% higher April total sales, and 6.9% higher preliminary March same store sales.

Merrill initiates coverage of Alcon (ACL) with a near-term and long-term strong buy rating. Goldman initiates with market outperform.

Best Buy (BBY) approves a 3-for-2 stock split.

Corning (GLW) sees a narrower than expected $0.10 first quarter loss per share, vs. $0.17 loss guidance, on $900 million in sales. The company notes sales will be slightly below guidance. It also announced today that CEO John W. Loose will retire on Apr. 25.

In response to Northrop Grumman's (NOC) sweetened offer to acquire TRW Inc. (TRW) for $53 in NOC stock per TRW share, TRW advises shareholders to take no action at this time.

CIBC World upgrades Paychex (PAYX) to buy from hold, and set a $49 target. Cites improving fundamentals.

Ethan Allen (ETH) posted third quarter EPS of $0.58, vs. $0.50, as higher gross and operating margins offset a 2.5% revenue drop. The furniture retailer says with a small increase in sales vs. last year, projects $0.56-$0.60 in fourth quarter EPS.

Automatic Data Processing (ADP) reported third quarter operating EPS of $0.56 on a 1% revenue rise. It said its businesses are not yet showing signs of economic recovery, but that it is comfortable with its fiscal year 2002 forecast of low single-digit revenue growth and 10% EPS.

CSK Auto (CAO) Lehman upgrades to buy from market perform.


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