Analysts worried about a technology spending slowdown will be looking to Cisco Systems for reassurance when the networking giant reports its quarterly results late Tuesday.
Analysts expect Cisco to report January quarter earnings of 25 cents a share, up three cents from the year-ago quarter. Sales are expected to climb 9.2% to $6.62 billion.
Given evidence of a sharp slowdown in IT spending in the fourth quarter, Cisco is unlikely to dramatically exceed estimates, but in the current environment, just meeting estimates and reaffirming guidance might be good enough, particularly after Juniper Network’s disappointing results last week.
Stocks closed little changed Monday, as investors continued to grapple with fears of a slowing economy, rising inflation, and conflict over Iran’s nuclear program.
The Nasdaq lost 3 to 2258, the S&P 500 rose 1 to 1285, and the Dow added 4 to 10,798. Volume declined to 2.09 billion shares on the NYSE, and 1.82 billion on the Nasdaq. Advancers led 19-13 on the NYSE, and 15-14 on the Nasdaq. Upside volume was 61% on the NYSE, and 53% on the Nasdaq. New highs-new lows were 133-30 on the NYSE, and 142-30 on the Nasdaq.
Micron jumped 7% on an upgrade from Citigroup, leading chip shares to a nearly 2% gain on the day.
Blue Coat plunged 39% on a warning.
Apple continued to slide after last month’s profit and sales warning, losing another 6%.
