Cisco Systems Inc (CSCO) Chief Executive John Chambers said on Tuesday he has grown more confident in the company's long-term revenue growth target of 12 percent to 17 percent, despite worries about the U.S. economy.

Chambers told a Morgan Stanley conference the network equipment maker will hit some "bumps" in the U.S. economy, but such bumps would likely be both short-lived and "shallow."

Chambers added: "I am even more comfortable with the long-term 12 to 17 percent growth than I was a month or two ago."

He also added that Cisco would continue to be aggressive in acquisitions.

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Apple Inc (AAPL) has no plans to declare a dividend or buy back its stock, Chief Executive Steve Jobs told the annual meeting of shareholders on Tuesday, adding that iPhone sales were on track.

Jobs said he was confident that Apple would hit its 2008 sales target of 10 million iPhones, a figure which some analysts have questioned in the face of a weaker U.S. economy, and executives said the communications device would reach Asian markets this year.

But Chief Operating Officer Tim Cook was elusive on timing for selling into the key market of China, which has more cellphone users than any other country.

"We will enter Asia with the iPhone in 2008 ... We will one day enter China, we're not saying when, and we will one day enter India," Cook said.

Jobs was asked if the company planned to start paying a dividend or initiate a stock buyback program. "At this time, we have no plans to do either," he told shareholders.

The company's stockpile of cash and short-term investments topped $18 billion at the end of last year, leading to speculation about how the maker of iPods, iPhones and Macintosh computers might spend some of its cash reserves.

Shares of Apple closed up $2.89, or 2.4 percent, at $124.62 on Nasdaq.

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Semiconductor maker Microchip Technology Inc (MCHP) raised its sales outlook for the fourth quarter, driven by strong demand for its products in Europe.

The company expects net sales to be flat to up 4 percent from the prior quarter, compared with a fall of 2 percent to 4 percent it forecast earlier.

Chief Financial Officer Gordon Parnell said it will be a "seasonally" strong quarter for Europe, while Asia, its biggest region in terms of revenue, would be sluggish as the company would be hurt by a period of inactivity during the Chinese New Year.

The European business contributed about 29 percent of sales in the year ended March 31, 2007, according to the company's latest annual report.

The company is seeing more of a broad rebound than they expected, particularly in Europe, American Technology Research analyst Doug Freedman said by phone.

Lehman Brothers analyst Romit Shah, in a research note, said Europe rebounded in the quarter and pointed out that there was strength in parts of Asia, particularly Taiwan and Singapore.

Microchip also raised the lower end of its fourth-quarter earnings forecast.

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(CIEN) which sells optical switches and other products that support Internet protocol (IP) networks, said it was optimistic about its outlook. The company forecast full-year revenue growth of up to 27 percent, better than the average analyst forecast of 22 percent growth according to Reuters Estimates.

"While we are mindful of the macro economic environment, indications from our customers to date suggest no change in the fundamental drivers of Ciena's business: the demand for increasing network capacity and the transition to Ethernet/IP-based network infrastructures," Ciena Chief Executive Gary Smith said in a statement. "Accordingly, we remain optimistic about our outlook for the year."

Ciena said its fiscal first-quarter revenue rose 38 percent to $227.4 million. Analysts, on average, had forecast revenue of $225.7 million for the quarter, which ended Jan. 31, according to Reuters Estimates.

Quarterly net profit rose to $28.8 million, or 28 cents a share, from $11.1 million, or 12 cents a share, in the same quarter a year earlier. Adjusted earnings rose to 47 cents from 22 cents, far exceeding the average analyst forecast of 39 cents, according to Reuters Estimates.

One of the highlights of the quarter was a multiyear contract to provide ethernet products to top U.S. phone company AT&T.

Ciena beats by $0.07, reports revs in-line Reports Q1 (Jan) earnings of $0.47 per share, excluding non-recurring items, $0.07 better than the First Call consensus of $0.40; revenues rose 37.7% year/year to $227.4 mln vs the $225.6 mln consensus. "While we are mindful of the macro economic environment, indications from our customers to date suggest no change in the fundamental drivers of Ciena's business: the demand for increasing network capacity and the transition to Ethernet/IP-based network infrastructures. Accordingly, we remain optimistic about our outlook for the year. Inclusive of revenue expected from our recently closed acquisition of World Wide Packets, we anticipate current demand trends will enable us to deliver annual revenue growth in a range, up to 27 percent in fiscal 2008."

It also forecast second-quarter revenue would increase 5 percent from the first quarter, more than the 3 percent expected by analysts. That outlook, as well as the full-year forecast, included revenue from World Wide Packets, a carrier ethernet company Ciena finished acquiring on Monday.

"We're not immune to the global economy, but the fundamentals are clearly positive," Ciena Chief Executive Gary Smith said, citing strong demand for network upgrades by phone service providers and large businesses amid growing Internet traffic.

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Chip stocks posted strong gains Friday, led by National Semiconductor Corp. as Wall Street analysts cheered the company's solid margin performance in the third quarter.

The Semiconductor Holdrs ETF (SMH) gained 1.6% to $28.89.

The stock of National Semiconductor surged 13.7% to $18.58 in intraday trading, the highest level since Feb. 4. The stock last traded up 8.6% to $17.74.

Lehman Brothers maintained its overweight rating on the stock with a price target of $22 and raised its fourth-quarter earnings estimate to 27 cents from 25 cents a share.

"Gross margin continues to beat expectations at 64% vs. our estimate of 63% due to higher manufacturing efficiencies, pricing, and product mix," said analyst Romit Shah. "Despite the prospect for declining growth, we think stable margins should support a higher multiple and limit downside to [earnings-per-share]."

Merrill Lynch reiterated its buy rating on the stock.

In a note to clients, analyst Srini Pajjuri said that even in a challenging macro-economic environment, National Semiconductor is on pace to reach its 65% gross margin target in mid-2008, "with potential to move past on mix improvements over time."

"Despite near term macro concerns, we believe National Semiconductor can grow at least in line with its peers given its exposure to wireless and power management markets," Pajjuri said. "We ... believe the Street continues to underestimate the margin leverage."

Late Thursday, National Semiconductor reported third-quarter net income of $71.2 million, or 28 cents a share and revenue of $453.4 million.

The latest results included $19.6 million of pretax severance and restructuring expenses related to a previously announced factory modernization effort, and about $11 million of discrete tax benefits.

The mean estimate of analysts polled by Thomson Financial was for earnings of 23 cents a share for the quarter and revenue of $457.4 million.

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Celgene Completes $2.9 Billion Acquisition of Pharmion

Acquisition moves Celgene closer to becoming a leading global hematology/oncology company

Combined company will bring together three innovative disease-altering therapies and a deep pipeline in cancer and inflammation

(CELG) today announced it has closed its $2.9 billion acquisition of Pharmion Corporation. Pharmion shareholders will receive $25 in cash and 0.8367 Celgene shares for each share of Pharmion stock owned. Pharmion shares were delisted from Nasdaq and trading ceased at the close of business on Friday, March 7, 2008.

The transaction brings together three medically meaningful therapies, Revlimid®, Thalomid® and Vidaza®, treating patients worldwide. These products are expected to generate multiple global revenue streams for accelerated financial growth as we move into nearly 100 countries over the next five years and beyond.

"By bringing together these two outstanding companies, we are creating a global leader in hematology/oncology," said Sol J. Barer, PhD, Chairman and Chief Executive Officer of Celgene Corporation. "We are now able to serve these patients through three major approved therapies, with a strong portfolio of hematology and solid tumor candidates advancing through our pipeline to address future needs. In addition, we have a number of innovative programs encompassing therapies for immune/inflammatory disorders, hematological malignancies and other cancers. We believe our combined capabilities can maximize the clinical, regulatory and commercial potential of all of these programs."

Celgene plans to announce its first quarter financial results on Thursday, May 8 at which time it will also provide updated 2008 financial guidance relative to the acquisition, as well as provide an update on the initiation of its global integration strategy. As the Company has stated, it expects the acquisition to be slightly dilutive to earnings in 2008, accretive in 2009 and materially accretive in 2010 and beyond.

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Qualcomm Inc (QCOM) backed its previous financial guidance at its annual meeting on Tuesday, raised its dividend and announced a $2 billion stock repurchase plan.

"We're very comfortable with the guidance we gave, and we see strong order flow going into the future," Chief Executive Officer Paul Jacobs told shareholders during a Webcast of the shareholder meeting.

In January, Qualcomm, which is betting on high-speed wireless technology for future growth, forecast current-quarter earnings of 50 cents to 52 cents per share and revenue of $2.4 billion to $2.5 billion.

Board Approves Buyback Plan--The new program will replace the previous $3 billion buyback program, which has about $2 million left available, the company said.

There is no expiration date for the new program. Qualcomm had about 1.6 billion shares outstanding as of Monday.

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Caterpillar raises 2010 revenue outlook to $60 billion Tuesday. Caterpillar Chairman and CEO Jim Owens Expects Robust Sales and Revenues Growth.

Caterpillar Inc (CAT), the world's largest maker of construction and mining equipment, raised its forecast for 2010 revenue on Tuesday, crediting in part continued worldwide infrastructure spending.

At an event for investors held on the sidelines of an industry trade show here, the Peoria, Illinois-based company said it now expects its sales in 2010 to approach $60 billion, up from a previous forecast of $50 billion "plus." Furthermore, to capitalize on various growth opportunities, Caterpillar plans to invest $2.3 billion in capital expenditure in 2008.

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The Fed promised a $200 billion booster shot for ailing markets -- and Wall Street answered with its biggest bounce in more than five years.

The Dow Jones industrials shot up more than 416 points, the biggest single-day point gain since July 2002, after the Federal Reserve announced the move as part of a worldwide effort to help struggling banks and mortgage providers.

Hoping to ease the credit crisis, the Fed -- acting with the European Central Bank, the Bank of Canada and the Swiss National Bank -- agreed to loan investment banks money in exchange for debt, including slumping mortgage-backed securities.

The idea is to create a market for assets that investors have recently been too scared to buy. That freeze in demand had sent asset values plunging and caused huge losses for some of the world's biggest banks.

After a series of hefty losses in stocks, the market hopes the central banks' decision Tuesday might be more effective than previous moves -- like rate cuts, which had led to initial stock pops that later fizzled.

"It's not just a rate cut. I think it's a very creative way to do financing," said Anthony Conroy, managing director and head trader for BNY ConvergEx Group. "It shows the Fed is willing to do things that are a little out-of-the-box to shore up credit issues. I really think they went to the heart of the issue."

Investors certainly seemed to like it: The Dow rose 416.66, or 3.6 percent, to 12,156.81. It was the biggest point jump in the Dow since a 447-point rise on July 29, 2002, and its widest one-day percentage gain since March 2003.

The Dow had lost more than 500 points in the past three sessions and is still down about 2,000 points from its October 2007 record high.

Broader stock indicators also soared. The Standard & Poor's 500 index rose 47.28, or 3.7 percent, to 1,320.65, while the Nasdaq composite index surged 86.42, or about 4 percent, to 2,255.76.
It was the S&P's biggest point gain since April 5, 2001, and the Nasdaq's biggest since May 8, 2002.

The latest step by the central banks was seen as a direct lifeline to investment banks, which previously couldn't borrow beyond already established Fed liquidity plans.

The plan basically allows Wall Street's biggest institutions to put up troubled assets as collateral for loans, use the new capital to make money in the market, and then pay back the loan up to 28 days later.

Though eventually banks would be forced to take the troubled mortgage-backed debt back on their books, the plan still takes short-term pressure off them. Many of these banks will release first-quarter earnings reports next week.

"The big problem has been the financials, and this helps supply money directly to the banks and may take some of the need for aggressive rate cutting off the table," said Peter Dunay, chief investment strategist at Meridian Equity Partners. "The Fed is basically going to take the bad loans off the banks' books, and the market seems to be loving that idea."

The Fed may have avoided dramatically slashing interest rates again when it meets next week. Economists remain concerned about the unrelenting rise in oil prices and the dollar's weakness, which contribute to inflation -- and cutting rates only adds to those pressures.

Government bond prices fell as stocks rallied. The yield on the 10-year Treasury note, which moves opposite its price, spiked to 3.60 percent from 3.46 percent late Monday.

Financial sector stocks, many of which have dipped to multi-year lows in recent days on liquidity concerns, led the market higher Tuesday.

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Investors starved for good news can look to company insiders for one of the few positive signals about a market rattled by a credit crisis, falling consumer sentiment, rising unemployment and mounting fears of a recession.

Analysts look to the buying and selling trends of insiders, who are typically long-term investors, for clues to the broader market outlook. Insider buying reached multiyear highs last August, when the subprime market meltdown first hammered stocks before they recovered somewhat in the fall.

Crocs Director Marks Buys 250,000 Shares (CROX)

CROX - A director of shoe company Crocs Inc. bought 250,000 shares of stock, according to a Securities and Exchange Commission filing Monday.

In a Form 4 filed with the SEC, Michael Marks reported he bought the shares for $19.87 to $20 a piece on Thursday.

Insiders file Form 4s with the SEC to report transactions in their companies' shares. Open market purchases and sales must be reported within two business days of the transaction.

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Investors starved for good news can look to company insiders for one of the few positive signals about a market rattled by a credit crisis, falling consumer sentiment, rising unemployment and mounting fears of a recession.

Analysts look to the buying and selling trends of insiders, who are typically long-term investors, for clues to the broader market outlook. Insider buying reached multiyear highs last August, when the subprime market meltdown first hammered stocks before they recovered somewhat in the fall.

(GE) The chairman and CEO of General Electric Co. bought 62,000 shares of common stock, according to a Securities and Exchange Commission filing Tuesday.

In a Form 4 filed with the SEC, Jeffrey R. Immelt reported he bought the shares Tuesday for $32.74 to $33 a piece.

Insiders file Form 4s with the SEC to report transactions in their companies' shares. Open market purchases and sales must be reported within two business days of the transaction.

General Electric is based in Fairfield, Conn.

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Faced with a raging credit crisis and an economy that may be mired in recession, the U.S. Federal Reserve looks set to cut interest rates sharply on Tuesday in a bid to avert a possibly severe downturn.

The scenario confronting the central bank is a thankless one: the threat of a deep recession comes even as inflation licks at the economy's heels. And no-one seems especially happy.

Fed Chairman Ben Bernanke is undergoing a "trashing ... by people who think the Bernanke Fed has eased too much, and those who think it has eased too little," said Ethan Harris, an economist at Lehman Brothers.

Bernanke and his colleagues have already lowered benchmark overnight rates by a cumulative 2-1/4 percentage points to 3 percent since mid-September. Tuesday's meeting comes exactly six months to the day from when they began chopping rates.

Forecasters, however, have turned increasingly gloomy on the economy in the past few weeks after a second monthly drop in employment, further signs of a consumer retrenchment and a financial crisis that led the Fed to throw a lifeline to Bear Stearns, the fifth-largest investment bank, on Friday.

In February, San Francisco Federal Reserve Bank President Janet Yellen warned a "negative feedback loop" could ensnare the economy. That fear may have been realized.

"Conditions have the potential to supercharge the increasingly visible self-feeding downturn in the real economy," Citigroup economist Robert DiClemente said.

Now, the only question seems to be the degree to which lingering inflation worries temper the central bank's move.

HOW DEEP A CUT?

The Fed has enacted a string of measures to stabilize credit markets, which need to function smoothly to keep the wheels of the economy turning.

Even before stepping in to rescue cash-starved Bear Stearns, it had pledged in recent days to pump $400 billion into the financial system to try to keep it from seizing up.

On Tuesday, policy-makers will turn their attention to their main tool to influence the economy -- interest rates.

Derivative markets that bet on Fed policy had recently wavered between a half-percentage point or three-quarter point cut in the federal funds rate. On Friday, dealers started to lean toward a bolder, full-point reduction that would take the rate down to 2 percent, the lowest level since December 2004.

"Aggressive policy action is warranted, and we expect officials to lower the funds rate by a full point ... Strong consideration ought to be given to an even larger reduction," said Citigroup's DiClemente.

Given the lag between rate cuts and their impact on the economy, there seems little incentive for a go-slow approach, with one major caveat: persistent and troubling price pressures.

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The Advisors' Sentiment Report is a survey that has been widely adopted by the investment community as a contrarian indicator and has been followed closely by the financial media. Each week the service Investors Intelligence surveys some 140 financial newsletter writers to determine whether they are leaning bullish or bearish in their opinions to subscribers and compiles the data to arrive at a weekly percentage of bulls vs. bears. Extremes in either direction are signals of reversal of the market's current trend. The last time the percentage of Bears was this high and the percentage of bulls this low was the bottom in 2002. Since its inception in 1963, this report has had a consistently good record for predicting the major market turning points.

Bear Stearns Cos Inc (BSC) is hoping to announce a deal to sell itself to JPMorgan Chase & Co (JPM) before Asian markets open on Monday, the Wall Street Journal reported on Sunday, as the investment bank struggles to save itself.

Bear Stearns, the fifth-largest U.S. investment bank, could sell itself for around $2.2 billion, the newspaper reported. That would amount to less than $20 a share.

The low sale price, equal to about two-thirds the company's $30.85 closing share price on Friday, signals just how dire the situation is for the 85-year-old investment bank.

Bear Stearns' cash reserves were drained by nervous trading partners Thursday, and it received a bailout from the Federal Reserve on Friday. The lifeline, extended through JPMorgan Chase, was intended to give Bear 28 days to get its house in order.

But even with that lifeline, customers fled on Friday, and will likely continue to do so without news regarding takeover talks, analysts said.

"They have to announce something sooner rather than later," said Jim Huguet, portfolio manager at Great Companies LLC in Tampa, Florida, which does not own Bear Stearns shares.

JPMorgan Chase, the third largest U.S. bank and one of the few global banks relatively unscathed by the credit crunch, is looking to limit some liabilities in acquiring Bear Stearns, the Wall Street Journal reported.

Bear Stearns has complicated mortgage bond and credit derivative assets on its balance sheet, and valuing them could be difficult. Bear may also face legal liability from soured subprime mortgage bonds it sold, analysts said.

Those complex liabilities could slow down the progress of any talks, which is why one analyst in Boston, speaking on condition of anonymity, said he suspects Bear Stearns will soon announce it is in advanced talks with a buyer rather than actually signing a deal.

Private equity firm JC Flowers & Co, which has snapped up distressed banks, also is in the mix, the New York Times reports. Representatives for JPMorgan, Bear Stearns, and Flowers were not immediately available for comment.

CRISIS OF CONFIDENCE

JPMorgan, an institution that has stepped in to rescue banks for more than a century, at the least is expected to purchase Bear's sizable prime brokerage unit, a person familiar with the situation told Reuters on Friday.

Investors lost confidence in Bear in recent weeks, because it is the smallest of the major investment banks and, at the same time, renowned as an aggressive trader in credit and mortgage markets. Bear generates a much bigger percentage of its revenue from the U.S. fixed income markets than its competitors.

In a classic run on the bank, traders last week stopped doing business with Bear because they feared the firm might go bust, draining cash and making a collapse all the more likely.

Given that lack of confidence, it would be more difficult for Bear to remain in business and rebuild, even if can raise capital or minimize its losses.

But the Federal Reserve is unlikely to allow Bear to fail, for fear it could trigger a chain reaction of failures. The investment bank has massive positions in interest-rate swaps, credit default swaps, and other derivatives with all of Wall Street. If it failed, a number of other banks could be hurt and investor confidence in the already fragile financial system could be further shaken.

Following previous crises, famous firms such as Kidder Peabody, Salomon Brothers and First Boston were forced to seek buyers with robust balance sheets.

Bear last week accelerated plans to announced its first quarter results to Monday, at which time Bear would also disclose it cash position, capital levels and exposures to hard-hit assets.

Analysts on average expect Bear's first quarter earnings to plunge by more than half to $1.19 a share from $3.82 a share a year ago, and revenue to shrink to $1.4 billion from $2.5 billion, Reuters Estimates said on Sunday.

JPMorgan Chase & Co. (NYSE: JPM - News) announced it is acquiring The Bear Stearns Companies Inc. (NYSE: BSC - News). The Boards of Directors of both companies have unanimously approved the transaction.

The transaction will be a stock-for-stock exchange. JPMorgan Chase will exchange 0.05473 shares of JPMorgan Chase common stock per one share of Bear Stearns stock. Based on the closing price of March 15, 2008, the transaction would have a value of approximately $2 per share.

Effective immediately, JPMorgan Chase is guaranteeing the trading obligations of Bear Stearns and its subsidiaries and is providing management oversight for its operations. Other than shareholder approval, the closing is not subject to any material conditions. The transaction is expected to have an expedited close by the end of the calendar second quarter 2008. The Federal Reserve, the Office of the Comptroller of the Currency (OCC) and other federal agencies have given all necessary approvals.

In addition to the financing the Federal Reserve ordinarily provides through its Discount Window, the Fed will provide special financing in connection with this transaction. The Fed has agreed to fund up to $30 billion of Bear Stearns' less liquid assets.

"JPMorgan Chase stands behind Bear Stearns," said Jamie Dimon, Chairman and Chief Executive Officer of JPMorgan Chase. "Bear Stearns' clients and counterparties should feel secure that JPMorgan is guaranteeing Bear Stearns' counterparty risk. We welcome their clients, counterparties and employees to our firm, and we are glad to be their partner."

Dimon added, "This transaction will provide good long-term value for JPMorgan Chase shareholders. This acquisition meets our key criteria: we are taking reasonable risk, we have built in an appropriate margin for error, it strengthens our business, and we have a clear ability to execute."

"The past week has been an incredibly difficult time for Bear Stearns. This transaction represents the best outcome for all of our constituencies based upon the current circumstances," said Alan Schwartz, President and Chief Executive officer of Bear Stearns. "I am incredibly proud of our employees and believe they will continue to add tremendous value to the new enterprise."

The transaction is expected to be ultimately accretive to JPMorgan Chase's annual earnings.

"This transaction helps us fill out some of the gaps in our franchise with manageable overlap," said Steve Black, co-CEO of JPMorgan Investment Bank. "We know the Bear Stearns leadership team well and look forward to working with them to bring our two companies together."

"Acquiring Bear Stearns enables us to obtain an attractive set of businesses," said Bill Winters, co-CEO of JPMorgan Investment Bank. "After conducting due diligence, we're comfortable with the quality of Bear Stearns' business, and are pleased to have them as part of our firm."

"JPMorgan Chase's management team has a strong track record of effective merger integration," said Heidi Miller, CEO of JPMorgan Treasury & Securities Services business. "We will work closely in the coming weeks with Bear Stearns' clients and management to execute the transaction quickly."

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Sunday Night Fed Cuts Discount Window

Fed Approves Cut to Its Lending Rate to Financial Institutions to 3.25 Percent

The Federal Reserve announced a series of new steps Sunday to help provide relief to a spreading credit crisis that threatens to plunge the economy into recession.

The central bank approved a cut to its lending rate to financial institutions to 3.25 percent from 3.50 percent, effective immediately, and created another lending facility for big investment banks to secure short-term loans.

The steps are "designed to bolster market liquidity and promote orderly market functioning," the Fed said in a statement. "Liquid well-functioning markets are essential for the promotion of economic growth."

The new lending facility will be available to financial institutions on Monday.

It will be in place for at least six months and "may be extended as conditions warrant," the Fed said. The interest rate will be 3.25 percent and a range of collateral will be accepted to back the loans.

The Fed also approved the financing arrangement announced Sunday in which JPMorgan Chase & Co. will acquire rival Bear Stearns Cos. The deal valued at $236.2 million, a stunning collapse for one of the world's largest and most venerable investment banks. The Fed will provide special financing to JPMorgan Chase for the deal, JPMorgan Chase said. The central bank has agreed to fund up to $30 billion of Bear Stearns' less liquid assets.

The Fed's actions are the latest in a recent string of unconventional steps to deal with a worsening credit crisis that has unhinged Wall Street. And, the action comes just two days before the central bank's scheduled meeting on Tuesday, where another big cut to a key interest rate that affects millions of people and businesses is expected to be ordered.

The "discount" rate cut announced Sunday covers only short-term loans that financial institutions get directly from the Federal Reserve.

Even with the Fed's aggressive moves, economic and financial conditions keep deteriorating.

The Fed in recent days has taken extraordinary steps to help banks and Wall Street investment firms survive the stresses of the credit crisis. Financial institutions have racked up multibillion-dollar losses when mortgage-backed investments soured with the collapse of the housing market.

The Fed this past week also said it would pour as much as $200 billion into big Wall Street banks and investment houses and allow them to put up risky home-loan packages as collateral. This maneuver was intended to bring sorely needed relief in the market for mortgage securities. The Fed also has offered as much as $200 billion in short-term loans to banks and large financial institutions.

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