Weak Markets Hurting JP Morgan

Citrix upbeat about second quarter; Hewlett-Packard says it's a global slowdown; plus more stocks in the news

JP Morgan Chase (JPM ) said in an SEC filing that it sees Q2 results hurt by weak equity markets, and their impact on investment banking and trading operations. S&P maintains its buy rating but cut its estimate.

Citrix Systems (CTXS ) says Q2 growth was stronger than expected. S&P maintains hold. Lehman reiterated its strong buy rating.

Hewlett-Packard (HWP ) sees the slowdown in information technology (IT) spending spreading beyond the U.S. and Europe. With soft May sales, the company is now more cautious regarding Q3 guidance of flat to down 5%. S&P maintains hold.

FreeMarkets (FMKT ) and Adexa Inc. agreed to terminate their merger pact without payment of any termination fees; FreeMarkets will acquire a 3% stake in Adexa. CS First Boston reiterates buy on FreeMarkets.

Tibco Software (TIBX ) teamed up with American Express (AXP ), Infosys Technologies (INFY ) and WestBridge Capital to form a new company to provide pre-packaged, hosted Intranet portal services to mid-market companies. CS First Boston reiterated its buy rating on Tibco. Robert W. Baird upgraded APW Ltd. (APW ) to market outperform from market perform.

Neuberger Berman (NEU ) reportedly expects Q2 profit to be modestly lower than the $0.71 consensus analyst estimate; the company cited a lower level of assets and a trading slowdown. Neuberger reportedly expects to meet $2.95 2001 EPS consensus.

Citrix Systems (CTXS ) says Q2 growth was stronger than expected. S&P maintains hold. Lehman reiterates strong buy.

Lehman believes the sell-off in energy merchant stocks is overdone, and recommends purchase of Mirant Corp. (MIR ), Aquila (ILA ), and Dynegy (DYN ).

Merrill downgraded GoTo.com (GOTO ) to near term neutral from accumulate, but maintains long term buy. The company was unavailable for comment.

Artesyn Technologies (ATSN ) sees $0.15-$0.20 Q2 cash loss on $120 million in revenues, citing a continuing decline in end-market demand. The company sees modest 2002 revenue growth, and will cut its workforce 12%-15%. Raymond James cut its estimates.

Circuit City (CC ) says Q1 same-store sales for Circuit City Group declined 25% and total sales fell 23%. The results reflect the absence of the company's appliance business. The company now anticipates about a $0.05 Q1 loss per share for its for Circuit City business.

Albertson's (ABS ) posted $0.46 vs. $0.42 Q1 EPS from operations on slightly higher same-stores sale and a 3.5% total sales rise. The company sees $0.43 Q2 EPS. S&P, Banc of America cut estimates.

Bank One (ONE ) now expects Q2 EPS to be about equal with Q1, or $0.58. S&P cut estimates and continues to recommend avoiding the share.

Avon Products (AVP ) remains comfortable with $0.57 Q2 EPS consensus estimate, expects sales to increase in mid-single digits (including foreign exchange effects). The company cites accelerating momentum in its U.S. business and continuing increases in global beauty sales.

Rare Hospitality (RARE ) posted a 2.9% Q2 same-store sales rise, and sees lower than expected $0.31-$0.35 Q2 EPS due to slowing sales and high utility costs.

CS First Boston downgraded America West Holdings (AWA ) to hold from buy.

Lehman upgraded Procter & Gamble (PG ) to buy.

ATMI Inc. (ATMI ) sees $0.01-$0.05 Q2 EPS on revenues roughly 20% below year ago, and 2001 revenues 10%-15% below 2000. The company cites lower demand and higher inventory levels. CS First Boston cut estimates.

Inamed Corp. (IMDC ) received FDA approval for its Lap-Band surgical device for treating severe obesity. CIBC World reiterates buy.

UBS Warburg upgraded Stilwell (SV ) to buy from hold.

Bristol-Myers (BMY ) increased its stock repurchase program by 40M shares and $2B in spending authority. Separately, a press report says that the company is closer to clinching a deal to acquire DuPont's (DD ) drug business for $7.5B-$8B.

S&P maintains hold on Priceline.com (PCLN ) following news two major investors are upping their stakes in the company by purchasing shares from founder Jay Walker and his trust.

S&P maintains hold on Amazon.com (AMZN ) after the June 5 analyst meeting, noting that the firm communicated a bullish stance as to 2002 and 2003.

Robertson Stephens downgraded Sungard Data (SDS ) to market perform from strong buy.

S&P maintains hold on General Electric (GE ) following reports the company is willing to sell regional jet-engine operations to help close its purchase of Honeywell (HON ).

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