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CNNfn market movers
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February 19, 1999: 11:22 a.m. ET
Circus Circus leads casinos higher but Waste Industries, Dean Foods sink
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NEW YORK (CNNfn) - Despite the broader market's abiding uncertainty, the invisible hand of Wall Street continued to move among individual stocks Friday, dividing the winners from the losers.
Coca-Cola (KO) shares overcame a flat opening to pick up 1/4 to 64-7/8 after announcing that it will launch a bottled water brand to compete with archrival PepsiCo's foothold in that fast-growing market.
Pepsi (PEP) boosters, however, seemingly ignored the challenge, lifting shares 1-9/16 to 39-1/8 in heavy trading as investors looked instead to news that influential Soros Fund Management had bought heavily into the company in fourth-quarter 1998.
Merrill Lynch (MER) leapt into the ranks of the e-brokers, confirming reports of a growing interest in Internet stock trading by buying the online trading unit of privately-held D.E. Shaw & Co.
Merrill shares climbed 2-7/16 to 72-5/16, but shares of already-established Web brokers were mixed. Ameritrade (AMTD) slid 1-5/32 to 84-11/32, but E*Trade (EGRP) welcomed the competition, gaining 1-1/4 to 40-7/16. Charles Schwab (SCH), which currently casts a giant Net shadow, was up 9/16 at 67-15/16.
Shares of Bank of Commerce (BCOM) benefited from another big financial transaction, gaining 1-5/8 to 18-11/16 after agreeing to a $314 million merger with U.S. Bancorp (USB). Based in San Diego, Bank of Commerce is best known as one of the largest U.S. small business lenders, while U.S. Bancorp is the 13th-largest domestic bank. U.S. Bancorp shares climbed 3/8 to 33-5/16.
Meanwhile, shoemaker Florsheim Group (FLSC) went looking for a merger, but shares slid 1/2 to 6-1/2 after the company said it has called in Bear Stearns to help evaluate its strategic options. Florsheim noted that no decisions have yet been made and "there is no assurance that any transaction may result."
The agony of profit warnings
Several companies faced the Street's harsh medicine after reporting disappointing earnings or warning of sagging profits to come.
Applied Graphics (AGTX) was fortunate, as promises of plant closings and layoffs managed to drive the taste of its fourth-quarter earnings from shareholders' mouths. Shares climbed 1/4 to 9-3/4.
On the other hand, waste management company Waste Industries (WWIN) fell 1-7/8 to 14-1/8 despite encouraging news of two acquisitions and two significant service contracts, as investors instead concentrated on a warning that fourth-quarter earnings will miss analysts' estimates.
Schick Technologies (SCHK) fell 15/16 to 4-5/16 on its own warning that "doubtful accounts" would contribute to a substantial operating loss when it reports fiscal third-quarter earnings next Monday. Wall Street had previously expected the maker of medical imaging systems to report a profit of 17 cents per share.
Dean Foods (DF) also warned of disappointing fiscal third-quarter results ahead, driving shares down 1-3/4 to 33-11/16. The company attributed the unexpected weakness to "unprecedented" milk costs and declining butterfat prices.
Casinos win big
Circus Circus Enterprises (CIR) climbed 1-1/8 to 16-13/16, leading several hoteliers and casino operators higher and reminding the market of the power comments from Wall Street analysts can wield.
Naomi Talish at Merrill Lynch expects Circus Circus to positively surprise shareholders with its earnings coming next Tuesday. She rated Circus Circus "accumulate" in the near term and "buy" in the long term.
Investors hoped the good luck could rub off, pushing shares of other casino operators higher. Harrahs Entertainment (HET) climbed 1-3/4 to 17-3/4, Mirage Resorts (MIR) jumped 1-5/16 to 18-15/16 and MGM Grand (MGG) leapt 2-3/16 to 35-15/16. 
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