CNNfn market movers
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October 1, 1998: 11:28 a.m. ET
Harbinger has bad tidings, Bell gets wrung and Richey cashes in on buyout
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NEW YORK (CNNfn) - Jittery nerves causing a rumble on Wall Street got an extra jolt from a software maker that forecast earnings troubles, but a pair of high-tech mergers lifted two others.
Harbinger (HRBC) had negative tidings, dropping 2-1/2 to 4-3/4 after the software maker said it expects third-quarter operating earnings of between 4 and 8 cents per share, versus a consensus analysts' estimate, as reported by First Call, of 11 cents.
Kennemetal (KMT) fell 3-5/16 to 23-5/8 after the construction equipment maker said the General Motors strike, weakness in the oil and gas industry and production cuts at some customers will cause it to fall short of analyst estimates in its fiscal first quarter.
Kennemetal said it sees profit of 20 to 25 cents per share, versus a First Call estimate of 53 cents per share, and said it will cut costs by 5 percent starting Oct. 31.
This in from Reuters Group: the information giant's U.S. shares (RTRSY) slipped 5-1/2 to 44-1/4 the company said it may suffer from cost-cutting by bank customers amid the global market turmoil.
USA Networks (USAI) tacked on 1-1/6 to 20-1/2 after the cable network's Ticketmaster Online-CitySearch unit late Wednesday filed an initial public offering with the Securities & Exchange Commission for $92 million of class-B common stock.
Buyouts pepper computer sector
On the buyout front, Richey Electronics (RCHY) soared 3 to 9-7/8 after the computer products vendor, Arrow Electronics (ARW), said it will buy the electronics distribution unit of Bell Industries (BI) for $10.50 a share.
For its own part, Bell announced a huge decline in third-quarter earnings to come and a major restructuring program. Its shares were down 2-9/16 to 9-3/8 as a result.
Elsewhere in the high-tech area, Carnegie Group(CGIX) shot up 1-13/16 to 4-7/16 after the British software maker Logica agreed to buy the call-center software maker for $35 million.
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