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CNNfn market movers
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March 5, 1999: 11:27 a.m. ET
Profit warnings abound while, among small drug researchers, Magainin falls
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NEW YORK (CNNfn) - In the backwash of Wall Street's ecstatic Friday leap, many of the morning's scattered stock falls resulted from companies warning that the future won't always be so bright.
Rawlings Sporting Goods (RAWL) said both revenue and profits would be rough in the current quarter, driving shares down 1-1/2 to 10-1/8. Although the sports-equipment supplier expects baseball licensing this season to be "exciting," it blamed retailer difficulties and market pressures for expected earnings weakness.
Investors also pounded shares of construction firm Michael Baker (BKR) down 7/8 to 7-3/8 for the company's admission of softer profits. Baker said issues relating to a building project at Universal Studios in Orlando, Fla., would cause "material adverse impact" on fiscal 1998 year-end earnings.
Casino equipment maker Anchor Gaming (SLOT) followed market ally International Game Technology (IGT) into the confessional, warning that sliding independent sales would hurt its fiscal third-quarter. Anchor shares fell 3-5/8 to 36-7/8, while IGT, suffering a fresh downgrade to "neutral" from "attractive" from Bear Stearns, extended its losses, down 5/16 at 14-3/8.
Circuit maker ADFlex Solutions (AFLX) blamed "particularly disappointing" technological difficulties at two major unnamed customers for 18 percent lower first-quarter sales and an upcoming first-quarter loss. Shareholders also were disappointed, knocking the stock down 3/8 to 3-5/8.
Wall Street also was scrupulous in punishing companies that arrived with weak profits in hand. Shares of railroad supplier ABC-Naco (ABCR) fell 1-9/16 to 13 after the company reported fiscal second-quarter earnings of 5 cents per share, while analysts had forecast a much higher per-share figure of 12 cents.
On the bright side, electronics behemoth Texas Instruments (TXN) climbed ahead of the broader market, leaping 4-3/4, more than 4 percent, to 97-1/4 after reassuring investors that current-quarter revenues are still showing an upturn.
Mixed medicine
In the fiercely competitive medical research field, many smaller firms rose or fell according to the regulatory fortunes of a single drug.
Perrigo (PRGO) shares climbed 3/8 to 8-3/4 on the strength of U.S. Food & Drug Administration (FDA) support for a new cold product.
However, Magainin Pharmaceuticals (MAGN) tumbled 2-5/16 to 1-5/8, losing more than half its value. The company said overnight that its foot ulcer ointment failed to receive government approval. Hambrecht & Quist downrated Magainin to "hold" from "buy" on the news.
The FDA seal of approval triggered stock gains for Guidant (GDT), up 1/2 to 60-1/2 on the strength of a new non-coronary stent design aimed at keeping obstructions out of a key blood duct.
Centocor (CNTO) also took heart from the FDA, climbing 1/8 to 41-5/8 after getting approval to co-market a new angina treatment with Pharmacia & Upjohn (PNU). 
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