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CNNfn market movers
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July 31, 1998: 2:35 p.m. ET
Kellogg, Starbucks need a java jolt, while oil, tech, 'Net stocks careen too
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NEW YORK (CNNfn) - That typical morning blend of coffee and cereal just ain't what is used to be, at least for companies that have made a staple of them, as the firms were stuck on list of losers on Wall Street Friday.
Kellogg (K) got a little soggy, dropping 1-15/16 to 33-1/2 after the cereal giant reported second-quarter earnings of 35 cents a diluted share, two cents lower than analysts expected. Kellogg said intense price competition led to a need to boost spending.
And another morning staple, Starbucks (SBUX), fell 4-7/8 to 42-5/8, down more than 10 percent, after the coffee vendor reported smaller-than-expected sales growth in stores open a year or more in July.
Telecom sector dialed up again
Ascend Communications (ASND) lost 5-3/4 to 45-3/4 as rumors swirled whether the wide area network provider would buy online computer systems maker Stratus Computer (SRA), which was up 13/16 to 28-13/16.
The San Jose Mercury News reported a buyout would occur next week for about $800 million in stock.
Cellular Communications (CCIL) rose 1-13/16 to 60-13/16 after a group led by FMR, parent of Fidelity Management and Research, raised its stake in the cell-phone company to 9 percent from 5 percent.
Carrier Access (CACS) rose 4-1/4 to 16-1/4 after the telecommunications equipment maker went public at $12 per share.
Qwest (QWST) climbed 1-5/8 to 41-5/8 after the telecommunications systems provider unveiled a deal to sell its calling cards through the 753-store Office Max (OMX) retail chain.
Oil and automotive stocks take a spill
Oil stocks headed lower as crude oil prices continued to spill. Dow stocks Exxon (XON), slipped 1-3/4 to 70-3/8 as Chevron (CHV) fell 1-3/4 to 83-9/16. Mobil (MOB) was off 3/4 to 70-3/16; Atlantic Richfield (ARC) shed 1-11/16 to 68-3/16.
Detroit's No. 3 automaker Chrysler (C) slipped 1 to 59-5/8 and American depositary receipts of Daimler-Benz (DAI) lost 2-5/8 to 102-3/8 after they said late Thursday the U.S. Federal Trade Commission cleared the auto makers in an antitrust review of their $42 billion merger.
Cracks in Internet sector
Egghead.com (EGGS) got cracked open, losing 3-1/8 to 14-3/4 after the Internet-based computer retailer reported its loss widened to 24 cents a share in its fiscal first quarter as it closed out its brick-and-mortar retail locations.
But Winfield Capital (WCAP) gained 1-21/32 to 10-9/16 as the investment company awaited the initial public offering for Cyberian Outpost, an online computer vendor, priced at $18 per share. BT Alex Brown is expected to take the company public Friday under the symbol COOL.
Winfield CEO Paul Perlin said the company owns 1.33 million preferred shares which are convertible to common stock at the offering.
Internet search engines were headed lower, with Yahoo! (YHOO) off 1-1/16 to 181-5/8, Lycos (LCOS) off 2-1/4 to 57-3/4, Excite (XCIT) down 1-5/8 at 38-3/4, and Infoseek (SEEK) falling 1-5/16 to 25-3/8.
Movement in the tech world
JDA Software Group (JDAS) sank 5 to 18, or more than 21 percent, after the developer of software for the retailing industry posted a second quarter loss of 87 cents a diluted share when analysts had expected a profit.
Electronic Data Systems (EDS) gained 15/16 to 35-13/16 as the technology services provider posted higher second-quarter profit. EDS said the just-ended strike at customer General Motors (GM) will cut into operating profit margins in the third quarter but they will rebound in the fourth quarter. CS First Boston downgraded the stock.
Adaptec (ADPT) climbed 1-1/4 to 11-7/8 after Chairman and CEO Grant Saviers resigned from the data transfer hardware and software company.
Micron Technology (MU) gained 1-1/4 to 32-7/16 after a top executive said the chip maker has seen a rise in the price of memory chips and increasing unit volume.
Procter & Gamble (PG) lost 3-5/16 to 80-5/16 as Bear Stearns downgraded the stock a day after the consumer products giant said it has lowered third-quarter earnings targets.
Cigna (CI) gained 1-9/16 to 66-5/16 after beating analysts' estimates for second-quarter profits by 7 cents a share, reporting a 47 percent increase in earnings at the insurance giant.
Loews Cineplex Entertainment (LCP) drifted 1/4 to 10-3/4 in active trading as the cinema chain initiated a public offering at $11 a share.
PegaSystems (PEGA) rocketed up 3-3/16 to 29-1/4 after the management solutions provider reported record second quarter earnings of 13 cents a diluted share, 3 cents above the consensus analyst estimate, as compiled by First Call. 
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