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Investors sent stocks moderately higher Monday but kept their purchases to a minimum while they awaited the outcome of this week's Federal Reserve meeting.  

Despite a hint of difficult quarters ahead from Cisco Systems, buyers bid technology stocks up on expectations the battered sector would benefit from an interest rate cut. But trading was light as investors generally remained cautious.  

Analysts said Wall Street remained focused on the strong likelihood that the Fed will cut rates for a second time in a month when it holds a two-day meeting starting Tuesday. But many investors are skeptical about whether that will be enough to improve soft corporate earnings.  

“The market will tend not to take any bold or aggressive steps until we find out if or how much the Fed is going to cut rates,” said Gregory Nie, technical analyst at First Union Securities. “This lackluster, somewhat range-bound trading we've been seeing is typically what happens in anticipation of a Fed meeting.” 

In the Dow, losses in its manufacturing and pharmaceutical components offset gains from banker J.P. Morgan, up 93 cents at $55.12, and American Express, up 99 cents at $47.61.  

Technology issues were buoyed by a late-afternoon buying spree, despite comments by Cisco Systems' chief executive that suggested business may be difficult in the coming quarters.  

“This has become a hallmark of the markets recently. We get soft corporate news and we don't dive. We ease our way around it, which I find encouraging,” said Larry Wachtel, market analyst at Prudential Securities, who said stock prices are starting to reflect the economy's slower growth rate. “Last fall, this kind of thing would have sent the whole market down.” 

The narrow trading range and light volume was the latest twist on the pattern that has characterized Wall Street's trading in recent weeks.  

Instead of rotating in or out of technology stocks, investors appeared to be waiting for some type of catalyst before making any major moves.  

— The Associated Press 

The Fed meeting is expected to provide some type of spark.  

“The market is expecting a cut, although I’m not sure we'll get one,” said Nie, the First Union analyst. “If we don't, the market is not prepared and we'll get at least a temporary selloff.” 

Another sign of the slowing economy came from Daimler Chrysler, which said it would cut 

26,000 jobs, or 20 percent of its North American work force. The company's stock fell 95 cents to $47.20.  

Advancing issues outnumbered decliners 3 to 2 on the New York Stock Exchange. Consolidated volume came to 1.26 billion shares, compared with 1.32 billion at the same point Friday.  

It was the first day ever that the NYSE's 3,500-plus issues traded solely in decimals. Officials there reported no problems with the transition. The Nasdaq Stock Market is expected to complete a similar change in early April as part of the same government mandate.