FedEx Shares Slip Despite Upbeat Earnings

Buy.com sets a price war with Amazon; FDA blocks Cytyc-Digene merger; plus more of today's stocks in the news

Donnelly (DON ) agreed to be acquired by Magna (MGA ). Terms: Donnelly holders to get Magna Class A sub. voting shares with a value of $28 per Donnelly share.

Merrill Lynch cuts Lexmark International (LXK ) to long term buy from strong buy.

S&P upgraded Krispy Kreme (KKD ) to accumulate from hold on valuation. BB&T Capital tied the stock drop to technical factors, and maintains long term buy.

Buy.com Inc. started a price war with Amazon.com (AMZN ) and says it will offer all of its book titles at 10% below Amazon's prices, effective immediately. Raytheon (RTN ) is among defense stocks lower Tuesday as a bidding war for TRW, and parts of TRW, ensues.

Emmis Communications (EMMS ) posted 4.5% higher Q1 broadcast CF despite 1.1% lower revenue and sees 1.8% lower Q2 revenue. S&P says the company's conservative guidance lags industry trends; and reiterates accumulate.

Jefferies upgraded Intuit (INTU ) to buy from hold.

Universal Stainless (USAP ) sees lower than expected $0.10-$0.12 Q2 EPS on sales of about $20M, citing an abrupt drop-off in power generation demand, and a pronounced shift to commodity products in sales to rerollers.

CIBC World upgraded Argosy Gaming (AGY ) to strong buy from buy following the resolution of game tax legislation in Indiana on June 22.

Cryolife (CRY ) received a warning letter from the FDA related to the inspection of the company's human tissue processing labs completed on April 12. Banc of America downgraded to market perform.

Cytyc (CYTC ) says the Federal Trade Commission voted to block its acquisition of Digene (DIGE ). Also, Cytyc sees lower than expected $39M-$43M Q2 revenues, break-even to $0.03 EPS (pro forma), for2002, $230M-$245M in revenues and $0.40- $0.44 EPS, and for 2003, $315M-$350M in revenues and $0.66-$0.76 EPS.

AOL Time Warner (AOL ) restructured its cable joint venture with Advance/Newhouse Communications. As a result, AOL loses control of 2.1M cable subscribers to Advance/Newhouse.

Dial Corp. (DL ) sees Q2 EPS exceeding current $0.25 consensus estimate by $0.07 or possibly more due to strong domestic sales, favorable product costs, and better than expected results in Argentina. S&P keeps accumulate on Dial.

WR Hambrecht downgraded Investment Tech Group (ITG ) to market outperform from buy.

Trex (TWP ) sees better than expected $0.33-$0.37 Q2 EPS on $41M-$44M in revenue, and $0.95-$1.05 2002 EPS on $147M-$150M in revenue.

Merix (MERX ) posted a $0.24 Q4 loss vs. $0.07 EPS from operations on a 29% sales decline. The company sees a $0.24-$0.28 Q1 loss on sales of $21.5M-$23.5M.

A Los Angeles jury ordered Genentech (DNA ) to pay a cancer center $200M in punitive damages in a trial over drug royalty payments due under a 1976 contract.

Quantum (DSS ) cut Q1 guidance; it sees a $0.09-$0.13 loss from operations on $200M-$215M in revenue. The company cites lower than expected sales at one of its major OEMs. S&P reiterates avoid.

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