Second-quarter results from Chase Manhattan Corp. will reveal pressures on credit card and emerging markets operations, but will remain solid overall, said Henry Dickson, a banking analyst at Salomon Smith Barney.

The New York banking company, had "robust" performance in its global banking division and will be among the strong second-quarter performers, the analyst said. "The stock remains one of our top picks of the year."

Solid revenue growth and reduced expenses will more than offset pressures being felt by emerging markets and the credit card group, Mr. Dickson said.

Earnings per share will come in around $1.23, when figures are released on July 17, up from $1.18 in the first quarter, he said.

Chase shares fell 18.75 cents, to $69.4375 on Thursday, as markets settled back to digest the prior session's buying binge.

Wednesday's big rally was spurred by the U.S. offering assistance, in the form of yen purchases, to help pull Japan out of its recession.

Now market watchers are beginning to question the Japanese government's own commitment to the economic recovery effort. Also, market enthusiasm was hurt when the U.S. Commerce Department said the trade deficit unexpectedly ballooned to $14.5 billion in April, from $13.2 billion in March.

The trade gap "could widen substantially if international problems spread," said Stan Shipley, senior economist with Merrill Lynch & Co.

The Standard & Poor's bank index fell 0.20%, and the Dow Jones industrial average was off 0.19%. The Nasdaq bank index slipped 1.10%, and the S&P 500 dipped 0.07%.

The market, especially for bank stocks, still has plenty of upside, some analysts say.

"We're just seeing a healthy pause before continuing with additional gains," said Michael Mayo, banking analyst with Credit Suisse First Boston.

He said the recent drop-off in stock prices offered opportunities for "bottom fishing," and cited Mercantile Bancorp as a key prospect.

The St. Louis company's shares are down about 20% from their recent high, and could appreciate as management pushes for improvements or ends up selling out, Mr. Mayo said.

"They have to take a hard look at expense controls" and forego acquisitions for a while, Mr. Mayo said. "If they don't succeed, they could be taken over."

Shares closed at $50.9375, down 68.75 cents.

Mr. Mayo also had a new assessment for Banc One Corp. He lowered his 1998 estimate by 10 cents to reflect possible weakness from the First Commerce acquisition, which closed last week, and more shares outstanding in connection with the deal.

Shares lost 43.75 cents, to close at $56.9375.

Chittenden Corp. held steady at $35.25, after the company's board authorized expanding a stock repurchase plan by 500,000 shares, to 1.75 million.

The Burlington, Vt., banking company plans the purchases over the next two years.

North Fork Bancorp was off 25 cents, to $25, after the registration of 362,111 shares to cover the acquisition of Amivest, a brokerage and money manager.

The Melville, N.Y., banking company registered the shares on behalf of Amivest's owner, Emmanuel Sella, who will remain as president and chief executive officer. Amivest has $725 million of assets under management. u

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