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Serving up Wall St.

24/09/2003 13:07
Investor response to Cisco Systems' expanded buyback could determine if tech rally continues.

NEW YORK (CNN/Money) - Cisco Systems' expanded stock buyback plan could be among the key factors in Wednesday's U.S. stock trading, as investors decide whether to strengthened the signal of confidence shown in the tech sector.


At 5:20 a.m. ET, futures pointed to a flat to higher start for the major indexes.

Cisco (CSCO: Research, Estimates), the No. 1 maker of Internet server equipment, said late Tuesday that it will expand its previous $13 billion stock buyback program by another $7 billion, to $20 billion. Company share repurchases are often seen as a signal of corporate confidence, which often spreads to individual investors.

Among U.S. stocks trading in Europe, Cisco shares rose more than 2 percent early Wednesday.

Positive developments from Yahoo! and Sun Microsystems lifted the Nasdaq composite index 1.5 percent in Tuesday's trading. The Dow Jones industrial average managed a more modest 9.4 percent advance. (see chart for details)

Asian-Pacific stocks ended higher Wednesday, with Tokyo's Nikkei index up 0.3 percent. European markets started the day with gains. (Check the latest on world markets)

Treasury prices fell in early trading, sending the 10-year note yield up to 4.24 percent from 4.20 percent late Tuesday. The dollar resumed its decline against the yen, although it remained above the three-year low set Tuesday; the U.S. currency was also down versus the euro.

Brent oil futures pulled back 14 cents to $25.38 a barrel in London, where gold stepped down in early trading.