What Cisco Needs To Do Tomorrow

August 9, 2004
Brice Wightman

Stocks were mixed Monday but investors were cautious ahead of Tuesday’s Fed meeting.
Economists polled by Reuters expect a quarter-point rate rise, from 1.25% to
1.50%. Fed fund futures are pricing in a 50% probability that the Fed will raise
by 25 basis points. As usual the Fed statement will be scrutinized. Oil rose to
new high as Yukos continues to have tax-related problems and Iraq said it would
shut down its southern pipeline because of a Shi-ite uprising. Oil traded as
high as $44.89.

McDonald’s
(
MCD |
Quote |
Chart |
News |
PowerRating) worldwide sales rose 6.4% in July

Wet Seal
(
WTSAL |
Quote |
Chart |
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PowerRating) fell after the
company’s creative director resigned.

Knight Trading
(
NITE |
Quote |
Chart |
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PowerRating) is higher after
Citigroup said it would buy its derivatives group.

On the earnings front, Cisco
(
CSCO |
Quote |
Chart |
News |
PowerRating)
reports Tuesday after the close and Dell reports on Thursday. For Cisco,
analysts are looking for 0.20, excluding charges with sales of $5.89 billion.
Last year the company reported 0.15. The company has beaten by a penny in each
of the last two quarters, so many are looking for a 0.21 number. If Cisco comes
through with a good report, some analysts believe it will rejuvenate the market.

Dow	-0.67	9814.66
S&P 500	+1.25	1065.22
Nasdaq	-2.25	1774.64

10-year Notes are -075 at 112 155

The dollar
was +0.04 at 88.42

Gold was +1.90 at 400.30

Crude Oil was +0.93 at
44.84

Volume was 1.08 billion
on the NYSE and 1.2 billion on the Nasdaq.

Market breadth was negative.

NYSE	Issues
Advancing	1539	Up Vol 534
Declining	1758	Down Vol 528
Ratio	1.14	1.01
Nasdaq
Advancing	1231	Up Vol 555
Declining	1827	Down Vol 659
Ratio	1.48	1.18

Brice Wightman

What Cisco Needs To Do Tomorrow

BUY THE FEAR, SELL THE GREED

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