NEW YORK (CNN/Money) - Ford Motor shares were down more than 6 percent on Thursday after UBS Warburg cut its investment rating on the stock to "reduce" from "hold" and warned that the stock price could drop below $14 this year.
Shares of bankrupt Enron also dropped sharply after consulting firm Arthur Andersen disclosed that a "significant but undetermined" number of documents related to the company had been destroyed.
But Gap Inc. stock rose after the apparel company raised its forecast for the current quarter after the nation's largest apparel chain reported December sales at its stores open at least a year were better than expected.
Thursday's losers
Ford (F: down $1.02 to $15.29, Research, Estimates). Wall Street brokerage UBS Warburg lowered its investment rating on the auto company to "reduce" from "hold" and said shares could fall below $14 this year. Ford is expected to announce a massive restructuring plan that could include the shuttering of some vehicle assembly plants and thousands of job cuts.
Micron Technology (MU: down $1.26 to $33.75, Research, Estimates). The chipmakers Micron and Hynix Semiconductor are discussing a wider combination than previously planned, but pricing differences could delay a deal.
Enron (ENE: down $0.12 to $0.67, Research, Estimates). The Justice Department said on Wednesday it had opened a criminal investigation of Enron as the controversy over the energy giant's collapse widened.
Rite Aid (RAD: down $1.08 to $3.01, Research, Estimates). The No. 3 U.S. drugstore chain reported a wider-than-expected fiscal third-quarter loss and cut its sales outlook for the rest of the fiscal year due to intense competition. More than 35 million Rite Aid shares traded, with the stock falling well below its previous 52-week low of $3.31. Losses spread to rivals Walgreen (WAG: down $0.16 to $34.99, Research, Estimates) and CVS (CVS: down $0.30 to $29.00, Research, Estimates).
Kmart (KM: down $0.60 to $4.20, Research, Estimates). The retailer warned that it doesn't expect to meet Wall Street's fourth-quarter earnings estimates of 32 cents a share. Kmart also reported a 1 percent decrease in December sales at stores open at least a year. Kmart's 52-week low is $3.89.
KPMG Consulting (KCIN: down $1.48 to $17.05, Research, Estimates). Lehman Brothers downgraded the consulting firm to "market perform" from "buy." The firm called the recent rally in KPMG shares "premature" given the challenging environment for the consulting business.
Charter Communications (CHTR: down $0.98 to $13.66, Research, Estimates). Morgan Stanley downgraded the cable company to "outperform" from "strong buy."
Corixa (CRXA: down $2.39 to $12.38, Research, Estimates). The biotech said Wednesday that a Food and Drug Administration panel will not be able to review next month the safety and efficacy of the company's drug Bexxar for treatment of low-grade non-Hodgkin's lymphoma. Corixa said the FDA has assured the company that it is continuing to work diligently on its review of Bexxar.
Franklin Covey (FC: down $1.81 to $4.19, Research, Estimates). The consulting company reported a far wider first-quarter loss as sales were eroded by the weak economy. The company reported a loss of $27.8 million, or $1.40 per share, after accounting for preferred dividends and discontinued operations, compared with a loss of $700,000, or 3 cents per share, a year earlier.
Thursday's winners
Koala (KARE: up $1.95 to $3.70, Research, Estimates). The maker of child safety products estimated that 2002 earnings could top current Wall Street expectations. It said basic earnings per share will be in the range of 45 cents to 57 cents per share. Analysts polled by First Call range from 45 cents to 50 cents in 2002.
PepsiCo (PEP: up $0.54 to $48.15, Research, Estimates). The soft drink maker stood by its profit forecast for 2001 and said it was comfortable with its annual earnings growth target of 13 percent to 14 percent.
Ivax (IVX: up $0.87 to $21.07, Research, Estimates). The generic drugmaker rose for the second straight day, as speculation mounted that the firm could be acquired by another drugmaker.
Gap (GPS: up $1.83 to $16.35, Research, Estimates). The retailer reported a narrower-than-expected 11 percent decline in December sales at stores open a year. Gap also gave a brighter fiscal fourth-quarter results forecast, saying its loss excluding charges will be no worse than its third-quarter loss of 6 cents a share. While Gap stock rose about 14 percent early Thursday, it's off 51 percent from its 52-week high.
Willamette Industries (WLL: up $2.95 to $46.45, Research, Estimates). The timber products producer brushed aside word that 64 percent of its shares have been tendered in support of a $6.1 billion hostile bid from rival Weyerhaeuser (WY: down $0.78 to $53.37, Research, Estimates), saying the offer remains inadequate. Willamette's board rejected Weyerhaeuser's sweetened $55-per-share, all-cash bid last week.
Intimate Brands (IBI: up $0.71 to $16.46, Research, Estimates). The operator of the Victoria's Secret lingerie chain reported better-than-expected December sales and said it expects to top the Wall Street consensus earnings estimate for its fourth quarter. Posting flat December sales, Intimate Brands said it expected to exceed the current First Call earnings estimate of 43 cents a share.
Williams-Sonoma (WSM: up $0.92 to $42.38, Research, Estimates). The home products specialty retailer said its December sales at stores open at least a year rose 5.5 percent. Williams-Sonoma also raised its forecast for the fourth quarter and fiscal year.
Pacific Sunwear (PSUN: up $1.39 to $22.79, Research, Estimates). The casual apparel retailer said sales at stores open at least a year rose 4.1 percent in December. Pacific Sunwear also forecast that fourth-quarter profit would be at or above the top of the range of Wall Street estimates.
Gadzoox Networks (ZOOX: up $0.13 to $0.79, Research, Estimates). The maker of data storage devices said it restructured its work force and reduced overall operating expenses to accelerate its plan to become profitable.
Portal Software (PRSF: up $0.33 to $2.78, Research, Estimates). Online music service Napster said Thursday it had selected the developer of business software to provide it with the key ingredient for its relaunch: a billing system that charges users for music downloads.
In related news, Napster said it will launch a test version of its new service that prevents the unauthorized sharing of copyrighted files -- a feature that made the original service popular among users but vilified by the recording industry, which sued it for copyright infringement. 
-- from staff and wire reports
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