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CNNfn market movers
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March 17, 1999: 2:30 p.m. ET
Prozac outlook sinks Lilly, but Multex soars in its first trading day
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NEW YORK (CNNfn) - In the unending search for the next hot stock, investors followed clues left Wednesday by Wall Street analysts to the heavy-equipment sector, while oil-field shares made their own good luck.
Among the day's standout winners was the afternoon's sole IPO, Internet financial data provider Multex.com (MLTX), a marketing partner of CNNfn.com. Multex raised its offering price overnight to $14 from a $9-$11 range, but not even the higher starting bar could dent investor demand. By mid-afternoon, the stock was trading up 19 at 33, a 135 percent post-pricing premium.
Big gains for big trucks
Heavy machinery also enjoyed a triumphant session after Salomon Smith Barney analyst Tobias Levkovich raised his ratings on several equipment makers to "buy" from "neutral."
Heavy equipment maker and Dow component Caterpillar (CAT) climbed 2-15/16 to 46-15/16 on Levkovich's recommendation, while vehicular electronics firm Eaton (ETN) added 15/16 to 68-1/8. Shareholders also followed the "buy" in respect to farm equipment makers, pushing Deere (DE) up 2-11/16 to 35-13/16 and Case (CSE) up 2-11/16 to 24-1/4.
In the broader heavy-vehicle sector, JLG Industries (JLG) powered up 5/16 to 12-3/16 without benefit of a Levokovich nod, while New Holland (NH) advanced 9/16 to 9-5/8. Agco (AG) gained 9/16 to 6-5/8.
Elsewhere in the rating pool
Among other stocks reaping the benefits of analyst support, software maker Novell (NOVL) climbed 1-3/4 to 25-13/16 after being rated a "long-term buy" by Merrill Lynch.
Resort operator Station Casinos (STN) upped its ante 1/4 to 12-7/8 on the back of several encouraging words from Wall Street's opinion-makers. BB Robertson Stephens raised its recommendation on the stock to "buy" from "perform," while Merrill Lynch started covering the company at a "buy" rating.
On the losing team, communications manufacturer Tekelec (TKLC) suffered the wrath of BT Alex. Brown, which lowered its "strong buy" rating to a straight "buy" and knocked shares down 2-15/16 to 7-13/16 in the process. The company warned late Tuesday that Y2K fears would cause its first quarter to disappoint shareholder expectations.
Irish luck proved inscrutable as ever for Galway-based Saville Systems (SAVLY), was unchanged after particularly heavy trading. Hambrecht & Quist earlier downrated the billing software firm to "hold" from "buy."
Also inscrutable, offshore driller R&B Falcon (FLC) defied the analysts, pushing up 5/16 to 7 despite being knocked to "buy" from "strong buy" by CS First Boston. Investors instead looked toward the oil-field sector's upward momentum, especially Halliburton (HAL), which climbed 1-11/16 to 36-9/16, and Schlumberger (SLB), up 2-3/16 to 58-1/16. Nabors Industries (NBR) added 1/2 to 14-1/2.
From buzz to bottom lines
Outside the circle of ratings and recommendations, it was back to the rumbling of consolidation, big contracts and profit news.
RealNetworks (RNWK) soared 12-7/8 to 127-7/8 after reports that rival Microsoft (MSFT) will include the company's RealGuide media software in the new release of Internet Explorer.
Internet synergy also lifted shares of content provider 24/7 Media (TFSM), which said GE unit NBC will be acquiring a strategic stake in the company as part of a combined Internet/television advertising venture. 24/7 climbed 2-9/16 to 30-9/16, but GE (GE) shares slid 1-1/4 to 108-3/4.
Shares of foam producer Foamex (FMXI) tumbled 1-11/16 to 5-7/8 after announcing overnight that unexpectedly high merger costs will cause it to report a per-share loss of $1.37 in the fourth quarter.
Retail computing firm IVI Checkmate (CMIV) also suffered from a negative outlook, falling 1-5/16 to 3-5/16 as investors shunned the company's warning of current-quarter earnings coming in "significantly below expectations."
Kitchen retailer Williams Sonoma (WSM) lost 7-1/4 to 28-3/4 after its fourth-quarter profits missed Wall Street estimates by a penny per share, spurring Goldman Sachs to strip the stock of its "recommended" rating.
Drug giant Eli Lilly (LLY) slid 4-3/16 to 89-7/8 as its flagship Prozac antidepressant suffered darkening prospects and a flat market share. Lehman Brothers analyst Anthony Butler predicted that neither Prozac sales and overall Lilly earnings would show much improvement from last quarter, but added that the market's "fears are overblown."
On the merger train
Instrument maker SeaMed (SEMD) climbed 2-13/16 to 10-1/2 after accepting an $83 million buyout from Plexus (PLXS), which fell 3-5/16 to 29-7/8.
Shares of oil-field supplier Daniel Industries (DAN) flew 2-11/16 to 14-3/4 on the back of a more mysterious deal announcement. The company said late Tuesday that it had rejected an unsolicited merger bid of $15 per share, but will consider other options that may lead it to "become part of a larger concern."
In a slightly more complicated mating dance, California Water Service Group (CWT), inched up 5/16 to 24-11/16 as its proposed $58 million acquisition of fellow utility Dominguez Services (DOMZ) hit a snag in the form of rival suitor American States Water (AWR). Dominguez climbed 1-1/2 to 28, while American States shed 1-5/16 to 26-3/4. 
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