AG Edwards Cuts Dynegy to Hold from Buy

Enron shares fall further; plus more of today's stocks to watch

Dynegy (DYN ) was lower after AG Edwards downgraded the energy stock to hold from buy.

Enron (ENE ) shares were down after the Wall Street Journal reported the company might have to come up with several million dollars over next 20 months to cover potential shortfalls in its investment.

Eastman Kodak (EK ) was lower after it posted $0.52 vs. $1.40 Q3 EPS from operations on 8% lower sales. The company does not expect Q4 EPS to exceed $0.15, cites continuing economic downturn.

Honeywell (HON ) reported $0.44 vs. $0.35 Q3 EPS from operations despite 4% lower sales. The company sees $0.54-$0.56 Q4 EPS on about $5.8B sales. (AMZN ) posted a $0.16 Q3 loss vs. $0.25 loss on slight revenue rise. The online retailer also sees flat to 10% Q4 revenue growth. S&P maintains a hold on the stock, while Merrill Lynch downgrades to near term neutral from accumulate.

Nextel Communications (NXTL ) posted $497M vs. $359M Q4 EBITDA before charges on a 30% consolidated revenue rise.

Compaq Computer (CPQ ) posted a $0.07 Q3 loss per share vs. $0.30 EPS from operations on a 33% revenue decline. The company sees a $0.03 Q4 loss on revenue of $7.6B-$7.8B. S&P maintains hold. CS First Boston, Prudential cut estimates.

Phillips Petroleum (P ) recorded $1.30 vs. $1.66 Q3 EPS. The oil company expects Q4 production to be sequentially higher, and adds capital expenditure is expected to be $3.3B for 2001, exceeding ealier budget of $2.5B.

Newport News (NNS ) posted $0.93 vs. $0.67 Q3 EPS from operations on 17% revenue rise.

Sears (S ) recorded $0.80 vs. $0.76 Q3 EPS on slight sales rise. The company is comfortable with $4.09 2001 EPS from ops consensus. It also set a 3-year plan to raise op. income by more than $1B, to more than than $3B.

Hershey Foods ( HSY ) said it will realign its business initiatives, eliminate non-strategic brands, close three facilities, and cut its workforce. As result, it will take 4Q, 2002 charges.

AT&T ( T ) posted $0.04 vs. $0.35 Q3 EPS, excluding other income, equity earnings. S&P maintains a hold.

California Pizza Kitchen (CPKI ) posted $0.18 vs. $0.19 (pro forma) Q3 EPS despite slightly higher same restaurant sales, and a 17% total sales rise. Wachovia cut the stock to market perform from buy.

Utilicorp (UCU ) said it sees $0.56-$0.58 vs. $0.50 (excl. $0.30 gain) Q3 EPS. The utility also said it sees better than expected $2.90-$2.95 2001 EPS.

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