in the rearview mirror and
raising its guidance, stocks in the U.S. were headed for a higher open Wednesday.
futures were trading 7 points above fair value, and the Nasdaq 100 was set for a 10-point gain at the open. The 10-year Treasury was down 5/32 to yield 4.94%, and the dollar rose against the yen, but weakened in trading with the euro.
Equity futures were bid higher a day after Fed policymakers left their fed funds target rate unchanged at 5.25%. The decision broke a string of 17 meetings at which the central bank had lifted rates.
Still, the Fed, in a statement after its meeting, left itself room to resume rate hikes in the future, saying it would keep a close watch on inflation indicators.
Giving a lift to the tech sector was networker Cisco, whose CEO, John Chambers, offered an upbeat 2007 revenue growth forecast Tuesday afternoon. The company earned $1.54 billion, or 25 cents a share, for the quarter ended July 29. Excluding certain costs, Cisco earned 30 cents, beating estimates by 2 cents. Revenue of $7.98 was ahead of the $7.92 billion consensus.
On a conference call, Chambers said fiscal 2007 revenue growth should be 15% to 20%, topping the 15.5% Wall Street estimate.
The news was considerably worse at homebuilder
. The company cut its full-year order forecast for the second time, and said third-quarter revenue fell to $1.53 billion from $1.54 billion a year earlier. Based on its backlog, Toll expects to deliver 2,500 to 2,800 homes in the fourth quarter, compared with its previous guidance of 2,900 to 3,300 deliveries.
For the full 2006 fiscal year, the company is forecasting the delivery of between 8,600 and 8,900 homes.
To view Farnoosh Torabi's video take on today's market, click here
Overseas, stocks were mixed. London's FTSE 100 was down 0.1% at 5810, and Germany's Xetra DAX was fractionally lower at 5650. Japan's Nikkei rose 1.2% to 15,657, and Hong Kong's Hang Seng gained 1.8% to 17,347.