Cisco Stabilizes The Market

August 24, 2001
Marc Dupee

The world’s largest maker of networking gear said sales had
“stabilized,” inspiring hope among investors that beleaguered
technology shares could soon find a bottom.

The Nasdaq is up 65.78 at 1908.75, the S&P 500 is 19.99 higher at
1182.05, and the Dow is up 187 at 10,416.

Over the past year, the company had experienced its worst sales decline ever,
particularly among “start up” telecoms and telecom carriers. CEO John
Chambers said sales for the first fiscal quarter will be flat to down, but
optimism that the worst may be over for one of the largest capitalized stocks on
the Nasdaq is driving its price up 1.43 to 18.19 and renewing optimism.

Chambers also announced changes in top management positions, such as its
telecom unit and changes in its corporate structure, in an effort to streamline
managerial decision-making and more efficiently apply technological advances
across product lines.

In other markets, bonds are selling off from multi-month highs, as stocks
rally and take away some of the safe-haven bids. And nearby unleaded gasoline
futures traded at the New York Mercantile Exchange are up sharply and are on
track to close the week up 10% on persistently strong end-of-summer demand and
on an outage at a major Midwestern refinery.

Cisco Stabilizes The Market

BUY THE FEAR, SELL THE GREED

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