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CNNfn market movers
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September 29, 1998: 2:21 p.m. ET
AMR sifts lower, CBS and Viacom see static, but PeopleSoft shares stiffen
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NEW YORK (CNNfn) - Airlines kept coming down, Standard & Poor's boosted a few stocks, and a hostile takeover target got a sign of legal support - but one that cut into its stock price.
AMP (AMP) lost 3-1/4 to 33-3/4 on signs the electrical-device maker's effort to avoid a $10 billion hostile takeover from AlliedSignal (ALD) with a so-called "poison pill" provision may be upheld by a federal judge.
BellSouth (BLS) gained 3-7/16 to 76-1/8 after the Atlanta-based regional Bell company said it would set a quarterly dividend of 36 cents per share, the same as the previous dividend.
U.S. shares of CBT Group (CBTSY) were pounded again, falling 4-7/16 to 10-3/4 after the Irish software concern warned Monday its third-quarter revenue and earnings would fall short of analysts' expectations due to weak orders.
And Echelon (ELON) plunged 3-7/32 to 2-1/32 after the computer-networking hardware and software maker said Monday it expects third-quarter revenue to fall 20 percent short of analysts' targets, due to reduced hardware sales and a slower-than-expected start-up of new products.
In the broadcasting area, CBS (CBS) dropped 2-3/4 to 23 after Morgan Stanley Dean Witter lowered its price target on the TV network to $33 a share from $45.
And cabler Viacom (VIA.B) dropped 8-7/16 to 54-3/16, about 13 percent, after Deutsche Bank Securities and Merrill Lynch cut their ratings on the parent company of MTV, VH-1 and Blockbuster Video from "buy" to "accumulate."
Nautica Enterprises (NAUT) rose 11/16 to 16-15/16 after the men's clothing company reported second-quarter earnings of 46 cents a share, beating analysts' cents of 43 cents, as reported by First Call.
United Dominion Resources (UDI) shed 3-11/16 to 18-1/4 after the engineering-parts maker predicted Monday third-quarter profits of 50 to 55 cents a share, below the First Call consensus estimate of 69 cents, amid weak world markets hurting sales. Merrill Lynch and Bear Stearns each downgraded the stock.
Firstplus Financial (FP) sank 2-13/16 to 12-1/4, as the consumer-finance company stretched its near-$8 plunge Monday after Merrill Lynch cut the stock to "near-term neutral."
Joining the S&P 500 is a plus
Standard & Poor's added several new companies to its S&P 500 index, a vote of confidence that made their stocks a bit more attractive Tuesday.
PeopleSoft (PSFT) climbed 2-3/8 to 33-11/16 after the software maker was named to the S&P index to replace First Chicago NBD (FCN), which is merging with Banc One (ONE).
BMC Software (BMCS) rose 2-9/16 to 59 after the management-software maker was named as the replacement H. F. Ahmanson (AHM), which is being bought by Washington Mutual(WAMU), in the S&P 500 index starting Oct. 1.
Union Planters (UPC) rose 3-1/16 to 50-7/16 after the Tennessee-based bank was named as the replacement for NationsBank (NB), which is planning to merge with BankAmerica (BAC), on the S&P 500 index.
And power company AES (AES) surged 3-1/8 to 36-5/8 after being named to the index in place of U.S. Surgical (USS), which is being acquired by Tyco International (TYC).
Airline stocks come down
Transport stocks drifted lower, as AMR(AMR) said it will sell the three companies in its AMR Global Services unit, which provides handling, maintenance, fueling and automated telephone services, to concentrate on its core airline business.
AMR, which did not say how much it expected to fetch for the unit, which had $451 million in revenue last year, was off 2-7/16 to 59-7/8.
Elsewhere, Delta Air Lines (DAL) lost 3/8 to 104-3/8, UAL (UAL), parent of United Air Lines, fell 13/16 to 68-7/16, Alaska Air Group (ALK) dropped 2-7/8 to 35-7/16 and US Airways (U) fell 7/8 to 56-1/2.
Piercing Pagoda (PGDA) sank 4-1/8 to 9-3/4 after the kiosk-based jewelry vendor said late Monday it expect a loss of 15 to 20 cents per share in its fiscal second quarter, versus a loss of a penny expected by analysts, as reported by First Call.
Piercing Pagoda cited worse-than-expected initial results generated from about 100 newly-acquired stores and under-performing sales at locations open at least a year.
Gerber Childrenswear (GCW) plummeted 2-3/4 to 8 after saying late Monday it expects its third-quarter earnings could be only half the Wall Street expectations, as compiled by First Call, of 34 cents a share.
The children's-apparel maker said unseasonably warm weather cut shipments of cold-weather products, and Hurricane Georges damaged two plants in the Dominican Republic.
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