Wall Street Braces for a Big Blue Shoe to Drop

Now to see about that big, blue shoe.

Computing-systems giant IBM (IBM Quote) is scheduled to report second-quarter earnings after the close of trading Wednesday. While most observers expect a solid quarter, Wall Street has been tied in knots for weeks over the notion that IBM finally will give in to the widespread technology slowdown and slash earnings guidance for the second half of 2001.

"They're definitely susceptible to weakness," says A.G. Edwards analyst Shebly Seyrafi. "I think they'll lower the bar." (A.G. Edwards hasn't done recent underwriting for IBM.) ...