Cisco Tops Estimates

Cisco Systems climbed after hours on Tuesday on better than expected results. Federal Reserve comments that the economic recovery remains uncertain kept a lid on the market during the day.

The ISDEX lost 2 to 114, just 8 points above its September low, and the Nasdaq slipped 4 to 1573. The S&P 500 declined 3 to 1049, and the Dow gained 28 to 9836. Volume rose to 1.36 billion shares on the NYSE, and 2.12 billion on the Nasdaq. Decliners led 17 to 13 on the NYSE, and 20 to 14 on the Nasdaq.

After the close, Cisco surged after beating pro forma earnings estimates, even though revenues came in a little light, and the company’s forward guidance was a little lower than estimates. QLogic , Aether , WebMD and Compuware also beat estimates. TMP Worldwide matched estimates but guided lower.

During the day, Network Associates and surged on reports that accounting issues may be cleared up this week.

Manugistics plunged 33% on a downgrade.

Broadcom lost 17% after Texas Instruments and Motorola struck a cable modem deal.

ESS Tech surged after the company took aim at accounting critics and announced a share buyback.

Hewlett-Packard gained on a Morgan Stanley upgrade.

Some technical comments on the market: Note: To see the charts in the text email newsletter, click on the story link at the top of the newsletter.

Cisco’s numbers weren’t as bad as feared, so it looks like tech should get a nice pop here. Upside may be capped on the Nasdaq (first chart below) at 1640, due to the bearish candlestick pattern called “three black crows” that formed Thursday through yesterday. First resistance is 1613-1628, then 1640, and 1673-1696, a critical level. 1507-1528 is critical support on the Nasdaq (the September 1387 low is below that), and the Nasdaq 100 (second chart) continues to hold just above the September lows (Cisco came within a point or so of its September low today). The S&P 500 (third chart) closed right under the critical level of 1052-1054, but should recover back above that level tomorrow. Next support is 1030, the 61.8% retracement of the September low, and resistance is 1064, 1074, 1085 and 1100, a critical level. The Dow (fourth chart) has support at 9730, 9680, and 9500-9600, and resistance at 9918, 10,000 and 10,050 (a critical resistance level).



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