http://www.thestreet.com/story/10622109/...

"Cisco delivered a strong, target-beating report Wednesday and sees the beginning of an upswing that could help boost the tech sector.

The networking gearmaker posted adjusted earnings of 36 cents a share, down from 42 cents in the year-ago period but better than analysts' earnings target of 31 cents, according to Yahoo Finance.

Sales for the fiscal first quarter ended last month were $9 billion, down 13% from the $10.33 billion level last year. Analysts were looking for sales of $8.74 billion.

"Building off what we saw as a clear tipping point in the fiscal fourth quarter, our first quarter results continued to reflect strong sequential growth trends that meet or exceed expectations during normal economic times," CEO John Chamber said in a press release Wednesday.

Hinting at a sunnier forecast, Chambers added: "We view the improving economic outlook, combined with solid execution on our growth strategy, as creating unparalleled opportunity to drive more value into the core of the network.""

[Cisco also announced plans to expand its stock buyback program by $10 billion. IBM and now CISCO have concurred that "the market is stupid" in regards to the best of tech. There's no better way to express a Bronx cheer for the intelligence of the market than a stock buy-back program. If the HLIT sell-off today had anything to do with Comcast's CapEx reduction, then the market deserves yet another Bronx cheer. They are spending a half-billion on the stuff that is important to Harmonic. Oh, and Cisco is increasing CapEx.

Three more positives:

1. The Fed decided to leave the record-low benchmark interest rate alone.

2. The Institute for Supply Management reported continuing improvement in the service sector.

3. The ADP National Employment Report said job losses in the private sector declined for the 7th consecutive month.]