The move should reduce earnings by 5 cents a share, half of which will come in 2001. Investors sense the Federal Reserve will cut interest rates again, so they are buying stocks. But not all sectors are advancing - suggesting investors' want to hedge their bets somewhat. According to Lehman reps, the meeting included nothing fundamentally new, but Chief Executive Jorma Ollila did insist that wireless handsets are far from becoming a commodity due to the increasing chipset and software complexity. The company believes the infrastructure market will accelerate in 2002.
Traders say speculation has the giant optical networker announcing a big share buyback.
Stocks are up on the assumption that if this bellwether feels it has hit bottom, shares in general are only headed up from here. A Cisco spokeswoman declines to comment, although the rumor appears to be making its way around Internet chat rooms as well. The analyst noted that visitation and occupancy rates in Las Vegas declined in February and Las Vegas casino hotel operators are seeing a slowdown in other Nevada markets. Second quarter earnings are looking bleak for brokerage firms. We find intriguing the potential outcome a few years down the road, but the interim journey looks hauntingly similar to the wandering trek of the last two years.