Cisco Shows No Signs of Slowing
Cisco Systems capped a big day for stocks with better than expected quarterly results.
Cisco said its July quarter sales grew a better than expected 10 percent to $10.4 billion, and earnings of 40 cents a share were a penny better than analysts anticipated.
The critical U.S. enterprise market grew 13%, more than double the previous quarter's performance. The company forecast growth of 8-8.5 percent for the next two quarters, slightly lower than expected, but comments from CEO John Chambers that the downturn will likely be a "relatively short challenge going forward" cheered investors worried about a prolonged downturn.
Routing and advanced technologies sales were strong, but Cisco said service provider spending remained mixed.
Also in late trading, Priceline (NASDAQ: PCLN) tumbled 17 percent despite beating estimates.
Stocks surged during Tuesday's trading session on falling oil prices and a better than expected services sector reading and a Federal Reserve interest rate policy statement that was more market friendly than traders had hoped for.
The Nasdaq rose 2.8 percent, and its biggest names posted gains of 3 percent or more, including Microsoft (NASDAQ: MSFT), Intel (NASDAQ: INTC), Oracle (NASDAQ: ORCL), Sun (NASDAQ: JAVA) and Apple (NASDAQ: AAPL).
But Rackable Systems (NASDAQ: RACK) plunged 16 percent after missing estimates.
The Nasdaq surged 64 to 2349, the S&P gained 35 to 1285, and the Dow soared 331 to 11,615. Volume rose to 5.51 billion shares on the NYSE, and 2.43 billion on the Nasdaq. Advancers led by a 25-8 margin on the NYSE, and 19-9 on the Nasdaq. Upside volume was 81 percent on the NYSE, and 86 percent on the Nasdaq. New highs-new lows were 56-114 on the NYSE, and 61-115 on the Nasdaq.
Article courtesy of InternetNews.com