NEW YORK (CNN/Money) - Shares of handheld digital device makers Palm Inc. and Handspring Inc. rose Friday, following presentations of new products and renewed enthusiasm at the Comdex technology conference.
However, financial services companies American Express and Citigroup took a hit after downgrades by Wall Street analysts.
Friday's winners
Shares of handheld digital device makers Palm Inc. (PALM: up $0.53 to $3.43, Research, Estimates) and Handspring Inc. (HAND: up $0.69 to $4.00, Research, Estimates) rose Friday, capping a strong surge this week following upbeat presentations electronics trade show Comedx in Las Vegas. Analysts said investors were enthusiastic about new products especially the Treo combination phone and personal digital assistant (PDA) from Handspring.
Shares of Lucent Technologies (LU: up $0.49 to $8.21, Research, Estimates) were up after news that the company completed the sale of its optical-fiber solutions business to Furukawa Electric. Lucent will receive $2.3 billion from Furukawa for the major portion of the business, $225 million less than originally agreed.
Shares of Corning (GLW: up $1.05 to $10.05, Research, Estimates) also jumped following the news. Corning plans to purchase the remaining portion of Lucent's optical fiber solution business, including interest in two joint ventures in China, for $225 million.
Yahoo! (YHOO: up $0.64 to $15.47, Research, Estimates). The Internet portal made a good impression on analysts attending a meeting with company executives. Morgan Stanley analyst Mary Meeker said in a research note that she is more confident in a turnaround at Yahoo.
Henry Blodget, who covers the company for Merrill Lynch, agreed. "The fundamentals appear to have stabilized, however, and should begin to improve significantly in the second half of next year," Blodget said.
Yahoo on Thursday reaffirmed its fourth-quarter guidance, saying it expects to break even or earn a penny a share before interest, taxes, depreciation, and amortization (EBITDA), in line with analysts' estimates.
Pep Boys-Manny, Moe & Jack (PBY: up $1.49 to $14.55, Research, Estimates). The auto parts retail chain earned $10.2 million, or 19 cents a share, in the quarter ended Nov. 3, compared with a year-earlier net loss of $63.2 million, or $1.24 a share. Sales fell 11.4 percent to $551.3 million.
U.S. Airways Group (U: up $1.27 to $6.97, Research, Estimates); UAL (UAL: up $1.53 to $14.24, Research, Estimates); AMR (AMR: up $1.31 to $20.06, Research, Estimates). Airline stocks rose for another day, helped by a continued slide in oil prices, which lowers costs. Oil prices rebounded somewhat Friday from two-year lows. In addition, the Senate on Friday approved a compromise aviation security measure designed to make flying safer.
Tellabs (TLAB: up $1.85 to $17.30, Research, Estimates). The telecommunications equipment maker is cutting about 1,000 jobs, its second round of cuts this year, and closing two plants in response to a continuing slump in demand. The Naperville, Ill.-based company plans to cut 800 jobs in the United States and 200 more overseas.
Nordstrom (JWN: up $2.03 to $19.85, Research, Estimates). Prudential Securities upgraded the retailer to "buy" from "hold." Nordstrom posted fiscal third-quarter earnings of $10.5 million, or 8 cents a diluted share, compared with a loss of $3.3 million, or 3 cents a share, a year earlier.
Serena Software (SRNA: up $3.05 to $22.90, Research, Estimates). The software maker said fiscal third-quarter net income fell, but came in 2 cents a share above Wall Street's lowered consensus forecast. The company reiterated prior guidance for the fourth quarter.
Taser International (TASR: up $0.95 to $14.21, Research, Estimates). The maker of stun guns climbed after United Airlines said it will install the company's devices in cockpits. United, owned by UAL (UAL: up $1.53 to $14.24, Research, Estimates), becomes the first major airline to install the weapon devices, subject to Federal Aviation Administration approval.
Friday's losers
Financial services companies American Express (AXP: down $1.26 to $33.13, Research, Estimates) and Citigroup (C: down $1.29 to $48.80, Research, Estimates) took a hit after downgrades by Wall Street analysts. American Express fell after UBS Warburg cut its rating on the company's stock. Citigroup fell after a downgrade by Prudential.
National Golf Properties (TEE: down $0.89 to $10.05, Research, Estimates). Merrill Lynch downgraded the company to "near-term reduce" from "near-term neutral" after the owner of golf courses on Hilton Head Island, S.C., and other places warned that the travel slowdown will take a bite out of next year's financial results. The latest losses extend a 23 percent tumble from Thursday.
Agilent Technologies (DELL: down $1.09 to $26.60, Research, Estimates). The nation's largest personal computer maker earned 16 cents per share in its third quarter, down from 25 cents per share a year earlier, but topping estimates by a penny. The company's sales dipped 10 percent to $7.5 billion. The company said it also sees fourth-quarter earnings at 16 cents per share, in line with analysts' estimates.
The losses spread to rivals Compaq Computer (CPQ: down $0.40 to $10.30, Research, Estimates) and Gateway (GTW: down $0.24 to $8.17, Research, Estimates).
Xerox (XRX: down $0.51 to $6.58, Research, Estimates). The photocopy maker said it plans to raise $500 million through a private sale of redeemable convertible trust preferred securities to help reduce its debt and for other corporate purposes. The move comes just weeks after the last of the major bond rating agencies, Standard & Poor's, cut Xerox's credit ratings to "junk" status.
Guitar Center (GTRC: down $1.25 to $11.80, Research, Estimates). Goldman Sachs cut its 2002 earnings estimate for the musical instrument retailer to 90 cents a share from $1.05, citing concerns about the company's diversification initiatives. The brokerage said in a research note that the diversification is taxing management's resources, evidenced in the consistent erosion in the company's profitability.
Starbucks (SBUX: down $1.67 to $17.50, Research, Estimates). The company said it sees earnings between 54 cents and 55 cents per share and 20 percent revenue growth in fiscal 2002, less aggressive than in recent years. The coffee seller earned 14 cents per share in its fourth quarter, in line with analysts' estimates.
Anadigics (ANAD: down $1.13 to $18.80, Research, Estimates). The company said it plans to sell $75 million of convertible notes that mature in November 2006.
American Eagle Outfitters (AEOS: down $4.23 to $26.27, Research, Estimates). The youth-oriented retailer reported a 5 percent rise in fiscal third-quarter profit as sales rose 28.6 percent. But American Eagle shares have nearly doubled over the last two months, a gain that may have factored in the recent strong results. Rival Abercrombie & Fitch (ANF: down $2.16 to $22.15, Research, Estimates) also declined. 
-- compiled from staff and wire reports
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