|
CNNfn market movers
|
 |
September 30, 1998: 2:28 p.m. ET
Internet, telecom-gear makers slump as Healthsouth takes a beating
|
NEW YORK (CNNfn) - Internet and telecommunications stocks were among the top losers on Wall Street Wednesday, while a healthcare provider was in critical condition.
After being halted in early trading, Healthsouth (HRC) dropped 5-1/8 to 9-1/2 after the Birmingham, Ala.-based healthcare services provider said it was assessing the impact of storm damage to some facilities and payment lags from managed-care companies.
Bankers Trust, Merrill Lynch and Bear Stearns all cut their ratings on Healthsouth on Wednesday.
And American HomePatient (AHOM) was also ill, sinking 2-1/16 to 1-5/8 after the home-healthcare equipment provider said its results for the third and fourth quarters will come up short of estimates due to lower sales, billing problems, and higher operating costs.
The brokerages Wheat First Union and Prudential Securities downgraded the stock.
Advanced Lighting Technology (ADLT), wasn't shining, losing 2-1/2 to 8-7/8 in heavy trading after Raymond James cut its rating on the lamp maker to "accumulate" from "buy."
Aspec Technology (ASPC) sank 1-1/6 to 1-3/4 after the provider of chip designs said late on Tuesday it will delay reporting fiscal third-quarter profit until about Oct. 9, because its new auditor hasn't yet completed a review.
Peco Energy (PE) rose 1-13/16 to 36-1/2 after Merrill Lynch upgraded the Pennsylvania gas and electricity provider to "near-term buy" from "accumulate."
Ovid Technologies (OVID) soared 4-1/8 to 24-1/8 after Dutch publisher Wolters Kluwer said it will buy the electronic-information provider for $24.59 per share, or roughly $200 million cash.
Paychex (PAYX) gained 3-3/16 to 49-7/16 after Standard & Poor's added the accounting and employment services provider to the S&P MidCap index.
The company replaces oil-drilling services provider Dresser Industries (DI), which tied up its merger with oil-driller Halliburton (HAL) Tuesday.
SM&A (WINS) sank 8-1/8 to 16-3/4, or 32 percent, after the company, which helps customers land government and commercial contracts, said it will report earnings of 16 cents a share in the third quarter.
That is a penny short of analysts' expectations, according to First Call.
Internet issues sink
Internet issues were slumping along with the negative market tide, said SG Cowen analyst Scott Reamer.
Among the big search engines, Yahoo! (YHOO) slid 4 to 127-1/2, Excite (XCIT) lost 1 to 40-91/1, Infoseek (SEEK) fell 1-1/2 to 24-1/4, and Lycos (LCOS) dropped 1-7/8 to 33-3/8.
America Online (AOL) sank 5-3/8 to 112, RealNetworks (RNWK) slipped 4-3/8 to 35, and Inktomi (INKT) lost 4-3/16 to 75-11/16.
Busy signals at telecom-gear makers
Mergers among some of the nation's big telephone companies over the past several years are finally biting into the bottom lines of equipment makers that supply them, analysts said Wednesday.
Northern Telecom (NT) sank for a second day, down 4-3/16 to 31-11/16 in the wake of the equipment provider's announcement that it won't meet analyst revenue targets in the third quarter.
Nortel said its percentage revenue growth will be in the low double digits, but it still expects to meet earnings estimates.
Warburg Dillon Read cut its rating on the stock to "hold" from "buy."
Rival Lucent Technologies (LU) dropped 4-15/16 to 69-9/16, and Tellabs (TLAB) sank 4-15/16 to 39-11/16 after BT Alex. Brown cut its rating on the stocks.
Elsewhere, ADC Telecommunications (ADCT) plunged 2-1/8 to 21-5/8 in heavy trading.
|
|
|
|
|
 |
|
