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Powell testimony, Cisco earnings: What to know in markets Wednesday

Heidi Chung

Federal Reserve Chairman Jay Powell heads to Capitol Hill Wednesday for his second and final day of testimony in front of the Senate Banking Committees.

Wednesday’s testimony comes after Powell’s three-hour testimony in front of the House Financial Services Committee on Tuesday in which he said the U.S. economy is in “a very good place.” Powell also noted that he doesn’t see a recession on the horizon and is closely monitoring the coronavirus outbreak.

Powell didn’t deviate much from his prepared remarks and previous comments in the Monetary Policy Report submitted to Congress Friday. Even though Powell is unlikely to stray from his previous messaging, market participants will still pay close attention to his testimony.

Cisco logo is seen at its office in San Jose, California on November 1, 2019. Photo by Yichuan Cao/NurPhoto via Getty Images)


In the afternoon, tech giant Cisco (CSCO) will report quarterly results after the market close. Cisco is expected to report adjusted earnings of 76 cents per share on $11.98 billion in revenue during its fiscal second quarter.

“We believe consensus expectations for [Cisco’s] upcoming earnings are reasonable and, we note, are within [Cisco’s] guidance range (as are we),” RBC analyst Robert Muller wrote in a note Feb. 11. “We expect comments regarding the potential impacts to the supply chain as well as items impacting enterprise demand (both as they relate to coronavirus) will drive the most meaningful takeaways.”

Cisco’s earnings report comes after the company withdrew from the Mobile World Congress in Barcelona later this month amid concerns surrounding the deadly coronavirus. The giant joins peers like Intel (INTC) and Facebook (FB).

Shares of Cisco have risen 3% so far in 2020 and have underperformed the broader market’s 4% gain in the same time period.

Other notable earnings announcements scheduled for Wednesday include CVS (CVS), Molson Coors (TAP) before market open; and Applied Materials (AMAT), MGM Resorts (MGM), TripAdvisor (TRIP) after market close.

Heidi Chung is a reporter at Yahoo Finance. Follow her on Twitter: @heidi_chung.

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