MARKET PREVIEW: Wall Street awaits Cisco

News from Nortel and JDS Uniphase should hold investors' attention on Tuesday, ahead of Cisco's earnings. Europe markets moved up while trading in Asia was mixed. Early indicators have the Dow set to open lower.


Nortel Networks (NYSE: NT) is set to buy a laser plant from JDS Uniphase (NYSE: JDSU) for about $3 billion in stock and cash. The deal will clear the way for regulatory approval of JDS's purchase of optical network competitor SDL Inc. (NYSE: SDLI).

Investors will be awaiting earnings from Cisco Systems, which is due to report its fiscal second-quarter results after Tuesday's market close. First Call's analysts' consensus estimate is for earnings of 19 cents a share for the period. The company's shares closed yesterday's session off $0.94 to $34.56.

Shares of Applied Micro Circuits Corporation (Nasdaq: AMCC) slipped in pre-session trading after the company reiterated its guidance for the current quarter, but said that it will be "on alert" for further order cancellations that may impact on results.

Expect the following technology stocks to be among Tuesday's most "http:="" www.zdii.com="" industry_list.asp?mode="news&doc_id=ZE507465&pic=Y"" rel="">actively traded issues: Computer Sciences (NYSE: CSC), eToys (Nasdaq: ETYS), J.D. Edwards & Co. (Nasdaq: JDEC) and TriQuint Semiconductor (Nasdaq: TQNT).

The Nasdaq ended Monday's session down 17.29 to 2,643.21 while the Dow Jones industrial average moved up 101.75 to 10,965.85.

At the Bell

The Dow Jones industrial average is expected to open down 5.6 points. The Standard & Poor's 500 futures index slipped 0.70 to 1361.30 at 7:21 a.m. EST in 24-hour electronic trading.

The Inter@ctive Week @Net Index was unchanged at 289.49.


The major Asian markets were mixed. Hong Kong's Hang Seng gained 82.40 to 15,913.24. Both the Nikkei 225 and Singapore's Straights Times fell, down 115.67 to 13,269.85 and 5.62 to 1,947.77, respectively.


European markets traded higher. London's FTSE 100 moved up 7.30 to 6,276.50, the CAC 40 in Paris rose 12.76 to 5,836.25, and the DAX in Frankfurt added 23.12 to 6651.19 at 7:09 a.m. EST.

Reuters contributed to this report.