Cisco

Cisco CEO says they are looking at revenue growth from 12-17% y/y.  I guess the Street was looking for 16%, at least.  Trading at 21.31 after hours.

MBIA (MBI) Update:

MBIA will issue $750 Million in common stock (42% of market cap)   MBIA Inc said that  it will decrease its previously announced fourth quarter pre-tax net loss on financial instruments at fair value ("mark-to-market") by $110M and increase its previously announced special addition to the unallocated loss reserve for prime, second-lien mortgage exposure by $100M to $200M.  These changes will result in a $6.5M decrease to the Company’s previously announced net loss for the year and three months ended December 31, 2007. 

Shuffle those shells around real good, boys.

Cisco and the Market

Hey, that’s a catchy title.  Cisco’s eagerly anticipated 2Q earnings are ………………EPS $0.38 v $0.38 est.,  Revenue $ 9.8B v $9.7B est.  Forward Guidance:  Nothing yet.  Conference call starts at 4:30 ET.

There’s just no confidence in the markets, still a lot of fear.  It’s being said that one of the reasons the market sold down was because of  the Fed’s Plosser saying recession fears have increased, and that inflation was a problem.  To some that meant that the Fed’s won’t cut rates again anytime soon.  Who cares?!  The credit crunch cannot be fixed by rate cuts. 

Dow Update

The Dow, and the other indices, are range trading.  Not much conviction on the buy or the sell side.  Volume isn’t bad, but seems to be drying up into the lunch hour.  Very slow news day, mostly just a lot of hashing over the same old issues.  Sorry this isn’t a "major" update, but I’ll let you know if anything exciting happens!

Pre Market Report - February 6th 2008

Looking at a relatively quiet day in the markets today. After yesterdays huge losses today we expect to see a period of rest, or in other words some consolidation. This morning we received Q4 labor productivity data. The headline number on productivity showed some improvement and tonight we will break down that data on the charts and see what it really is telling us.

Futures are telling us that we will have a slight gap up on the open but have already started to pull back slightly heading into the final 30 minutes before the market opens. If the markets are void of any substantial news today then we expect to see a "non event" today with lower volume while the markets wait for the next volley of data or news.