M O R N I N G .. S N A P S H O T -- Cisco's news to propel markets
By Julie Rannazzisi, CBS.MarketWatch.com
Last Update: 8:13 AM ET Aug 24, 2001
NEW YORK (CBS.MW) -- Investors, latching onto a reaffirmation from Cisco Systems that business may be starting to stabilize, appear ready to push shares sharply higher once the official opening bell sounds.
The September S&P 500 contract tacked on 6.90 points, or 0.6 percent, and was trading about 5.90 points above fair value, according to numbers provided by HL Camp & Co. And Nasdaq futures put on 34.00 points, or 2.3 percent.
Cisco (CSCO) rallied 5.3 percent to $17.65 in Instinet pre-market action. After the close Thursday, the networking colossus announced a widespread reorganization of its business. The company also said it's starting to see signs of stabilization, reiterating a comment made when releasing its fourth-quarter results earlier in the month. CEO John Chambers added that orders for the first weeks of the quarter are in line with previously announced targets.
On the fund flow front, Trim Tabs estimates that all equity funds had outflows of $3.5 billion in the week ended August 22 compared with outflows of $2.6 billion in the prior week. And equity funds that invest primarily in U.S. stocks had outflows of $2.8 billion compared with outflows of $2.4 billion in the prior week.
Not surprisingly, Treasurys retreated on the back of expected strength in the stock market.
The 10-year Treasury note was down 7/32 to yield ($TNX) 4.91 percent while the 30-year government bond slumped 6/32 to yield ($TYX) 5.425 percent.
Friday will see the release of July durable goods orders, seen declining 0.6 percent, and July new home sales, expected to come in at 919,000. and economic calendar and forecasts.
In the currency arena, the dollar rose 0.4 percent to 120.33 yen while the euro slipped 0.4 percent to 91.06 cents. |
