Investors expect more interest rate cuts

This week, talk on Wall Street might again revolve around interest rates. Some investors feel the Fed is not done cutting rates and are hoping for another rate cut at or before its March 20 meeting.\n"The weak economy is causing more layoffs ... and manufacturing continues to be in a recession," Fahnestock's Alan Ackerman told The Wall Street Journal. "All eyes are on the service sector, attempting to measure its strength or weaknesses. The fact for now is the Fed is friendlier, and it may as a result of recent economic data be forced to move before its next meeting."\nReporting Earnings\nAnheuser-Busch, Allstate, Cendant Corporation, Cisco Systems, CNet, Computer Sciences, Disney, Humana, Network Appliances, News Corp., Oxford Health, PepsiCo and MCI Worldcom are all expected to report earnings this week.\nLast Week\nTuesday, the Federal Reserve lowered the federal-funds rate to 5.5 percent. The move followed its surprise half-point cut Jan. 3. The Fed is hoping to stimulate the economy by lowering interest rates.\nFriday, the Nasdaq Composite Index lost 122.29 points, closing at 2660.5. The Dow Jones Industrial Average also lost ground, dropping 119.53 points to close at 10864.1. The Nasdaq composite finished the week down 4.3 percent, but remains up 7.7 percent for the year. The Dow Jones Industrial Average gained 1.9 percent for the week and is up .7 percent for the year.\nAnnouncing Layoffs\nAmazon.com, Intel, DaimlerChrysler, General Electric and JDS Uniphase announced they would be reducing their workforces. According to outplacement firm Challenger, Gray & Christmas, corporations laid off 133,713 employees in December. This is the fourth time labor reductions broke 100,000 since the firm began its survey in 1993.\nStock News\nWednesday, Coca-Cola reported fourth quarter earnings per share of .38 cents, matching analysts' expectations, according to First Call/Thomson Financial. The company announced worldwide unit case growth was 4 percent for the full year. Coca-Cola said it remains comfortable with the current range of analyst expectations for earnings per share in the year 2001.\nAmazon.com reported a fourth quarter loss of 25 cents a share, beating estimates by a penny Jan. 30. A First Call/Thomson Financial survey had produced a mean loss estimate of 26 cents a share for the quarter. The company, which has yet to earn a profit, announced it expects to reach operating profitability by the end of the year.\nFinal Note\nTechnology giant Cisco Systems will report earnings Tuesday. Wall Street is looking for earnings of 19 cents a share from the company. Cisco's report might have a major impact this week.