Stocks To Open Weak
Stocks appeared set to open lower
Wednesday while safety-seeking cash headed for Treasuries after networking giant
Cisco Systems reported its first-ever net loss as a public company.
After Tuesday’s market close ,
Cisco reported a loss of $2.69 billion, or 37 cents per share in the fiscal
third quarter, vs. with earnings of $641 million, or 8 cents per share, in the
year-ago period. It was the first net loss ever in Cisco’s 11 years as a public
company. Excluding one-time items, Cisco earned 3 cents per share, a penny above
First Call’s consensus estimate. Cisco’s Chief Executive John Chambers said he
sees signs the networking and communications sectors could bottom in the
next two quarters with growth possibly resuming in 2002.
The semis sent some warning signs.
After Tuesday’s close, National Semiconductor
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PowerRating) warned of a drop in
fiscal fourth-quarter sales and said it would lay off 10% of its staff.
Maxim Integrated Products
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sales, but the chipmaker warned of a sharp falloff in new orders.
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Defense contractor Northrop Grumman
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confirmed it made a matching takeover bid for Newport News Shipbuilding
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which is already being courted by General Dynamics
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PowerRating). Both suitors have
offered $67.50, though Norththrop Grumman’s offer is mostly stock while General
Dynamics is most all cash.
Waste Management
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earnings of 20 cents a share vs. 9 cents a year ago and analyst estimates
averaging 24 cents. Revenue fell 16% to $2.72 billion.
Rupert Murdoch’s News Corp.
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reported fiscal third-quarter earnings of 12 cents a share per NYSE-listed ADR
vs. analyst estimates averaging 9 cents.