A disappointing forecast in August, hinting at weakness in China and corporate tech-spending, knocked Cisco Systems Inc. shares down. The question when Cisco delivers its most recent quarterly update is whether that spending trend continues.
Cisco CSCO, -1.49% is seen as one of the biggest barometers of tech spending globally, due to its dominance of the networking sector and the fact that a slowdown in network purchases can presage problems in other tech sectors. Several analysts think Cisco will say that tech spending is in trouble when it reports fiscal first-quarter results on Wednesday.