Allegheny Energy (AYE

) says it is in technical default under its principal credit agreements and those of its subsidiaries. S&P reiterates sell.

CVS (CVS

) posted 8.3% higher September same store sales, and 8.4% higher third quarter same store sales. CVS expects to report third quarter earnings per share at the high end of the previous $0.37-$0.39 guidance (excluding a gain). CVS sees $0.46-$0.48 fourth quarter earnings per share.

Pepsi (PEP

) posted $0.56 vs. $0.49 third quarter earnings per share on a 4% revenue rise, and posted $0.54 reported earnings per share. Pepsi is confident in the previous 2002 guidance. UBS Warburg reiterates its hold rating. S&P maintains its buy ranking.

Merrill downgrades Philip Morris (MO

) to neutral from buy.

Entegris (ENTG

) posted $0.06 fourth quarter earnings per share vs. a $0.02 loss on a 21% sales rise, and expects first quarter sales to decline by about 20% sequentially. Goldman cut estimates.

Dollar Tree (DLTR

) posted 15% higher third quarter sales, and slightly higher same store sales. The company remains on-track for 25% square footage growth by the end of the year. Due to present economic conditions, the retailer sees flat fourth quarter same store sales.

Sharper Image (SHRP

) says due to strong sales, it sees a narrower than expected $0.05-$0.07 third quarter loss. The company posted 37% higher September same store sales and 47% higher total sales.

Lehman upgraded the major U.S. pharmaceutical sector to positive from negative. Merck (MRK

) looks to benefit from the upgrade.

International Rectifier (IRF

) sees about $211 million in first quarter revenue -- midpoint of guidance. However, the company says it did not see seasonal improvement in PC-related demand late in the quarter, and now expects second quarter revenue to be about flat sequentially. S&P downgraded.

JDA Software (JDAS

) sees $0.06-$0.07 third quarter earnings per share, excluding the amortization of intangibles, on revenue of about $49 million. The company says software license revenues were well below expectations; and set a two million share buyback.

Schering-Plough (SGP

says the SEC requested that the company provide information relating to its meetings with investors and other communications last week.

Charles River (CRL

) says third quarter sales and earnings per share will be at the high end of its previous guidance of $138 million to $141 million in sales, and $0.36-$0.37 earnings per share, excluding extraordinary charges for the cancellation of a credit facility.