A positive sales outlook from tech bellwether Cisco Systems is expected to give U.S stocks a boost when markets open Wednesday.

On Tuesday, Cisco reported flat earnings, hurt by options expenses, but its acquisition of Scientific-Atlanta helped boost revenue 21%.

Cisco CEO John Chambers forecast revenue growth between 15% and 20% for the fiscal year ending in July 2007, better than analysts’ expectations of a 15% rise.

U.S. markets turned lower on Tuesday after the Federal Reserve left open the possibility of a rate increase as early as next month.

The Dow Jones industrial average dropped 45 points, the Nasdaq composite index slipped 11 points and the S&P 500 fell 4.3 points.

The Fed cited moderating growth for not raising rates for the first time in 25 months.

In today’s earnings news, Disney reported stronger revenue and earnings for the third quarter, helped by improvements in its movie and theme-park operations.

Late Tuesday, Magna International’s second-quarter profit fell to US$193 million, despite a nine% increase in sales.

In M&A news, Falconbridge’s board of directors recommended that shareholders tender to Xstrata’s offer, signalling an end to a months-long takeover battle.

Swiss-based Xstrata, which already owns a 24.5% stake of Falconbridge, is offering $63.25 a share in cash, including a special dividend, for the rest. That offer expires Aug. 14.

Crude-oil futures rose 22¢ to US$76.53 a barrel. Weekly U.S. inventory data will be seen as especially important after BP’s disruption at the Alaskan Prudhoe Bay field. Crude production may be hurt by as much as 400,000 barrels a day.

There are no major economic releases from Statistics Canada today.

The Canadian dollar opened at US89.37¢, up 0.22 of a cent.

Overseas, European stock markets sagged.

pan’s benchmark Nikkei 225 stock index rose 191.93 points, or 1.24%, to finish at 15,656.59 on the Tokyo Stock Exchange. The Nikkei was boosted by news that the country’s core machinery orders rose 8.5% in June.

In Hong Kong, shares advanced sharply to a six-year high as buyers bet the Fed’s decision Tuesday to hold off on interest rates hikes will prompt more fund inflows into Asia. The blue-chip Hang Seng Index rose 301.79 points, or 1.77%, to 17,349.99.

Toronto stocks moved higher Tuesday, as energy stocks surged. North American markets also reacted to the U.S. Federal Reserve’s decision to end its streak of interest rate hikes.

The S&P/TSX composite index advanced 61.50, or 0.52%, to 11,988.18. The senior exchange was closed yesterday for the August civic holiday.

The S&P/TSX Venture composite index lost 12.47, or 0.47%, to 2,634.15.