M A R K E T .. S N A P S H O T -- Cisco warning takes its toll
Stocks brace for challenging open
By Julie Rannazzisi, CBS.MarketWatch.com
Last Update: 7:21 AM ET Apr 17, 2001
NEW YORK (CBS.MW) -- Cisco Systems' warning is set to put significant pressure on the market once trading commences Tuesday. In addition, investors will have a litany of quarterly results to digest as the earnings floodgates open.
In the futures markets, the June S&P 500 contract shed 10.60 points, or 0.9 percent, and were trading about 15.70 points below fair value, according to HL Camp & Co. Nasdaq futures, meanwhile, slid 41.00 points, or 2.5 percent.
In shares trading before the opening bell, Cisco Systems (CSCO) fell 9 percent in Instinet. The networking behemoth announced after the close Monday that it expects revenue for its fiscal third quarter to be down approximately 30 percent from the second quarter and sees earnings per share in the "very low, single-digit range." The shortfall was blamed the shortfall on "continued global economic challenges, the slowdown in the global telecom market, and the deceleration in corporate IT spending." Cisco also announced a reduction of 8,500 in its work force.
In the Treasury arena, not surprisingly prices reasserted themselves after retreating substantially on Monday.
The 10-year Treasury note was up 13/32 to yield ($TNX) 5.20 percent while the 30-year government bond added 10/32 to yield ($TYX) 5.67 percent.
Tuesday will see the release of a spate of economic news: the March consumer price index, seen rising by 0.1 percent overall and 0.2 percent at the core; March housing starts, seen coming in at a 1.63 million rate; and March industrial production, seen shedding 0.1 percent, coupled with capacity utilization. View Economic Preview and economic calendar and forecasts.
In the currency arena, dollar/yen erased 0.5 percent to 123.75 while euro/dollar dropped 1.0 percent to 0.8789. |
