Wall Street slips after Cisco's gloomy outlook

By Lewis Krauskopf (Reuters) - Wall Street's main indexes slipped from near record levels on Thursday, as a dour forecast from tech stalwart Cisco Systems raised fresh questions about the global economy's health and overshadowed a strong report from big box retailer Walmart. Cisco shares tumbled 7.8% after the network gear maker forecast second-quarter revenue and profit below expectations as increasing global economic uncertainties kept clients away from spending more on its routers and switches.

Reuters November 15, 2019 02:06:49 IST
Wall Street slips after Cisco's gloomy outlook

Wall Street slips after Ciscos gloomy outlook

By Lewis Krauskopf

(Reuters) - Wall Street's main indexes slipped from near record levels on Thursday, as a dour forecast from tech stalwart Cisco Systems raised fresh questions about the global economy's health and overshadowed a strong report from big box retailer Walmart.

Cisco shares tumbled 7.8% after the network gear maker forecast second-quarter revenue and profit below expectations as increasing global economic uncertainties kept clients away from spending more on its routers and switches.

Cisco's share decline weighed the most on the major indexes and helped drag the technology sector <.SPLRCT> down 0.3%.

In contrast, Walmart raised its annual outlook and the world's largest retailer posted better-than-expected earnings, comparable sales and e-commerce growth in its largest market during the third quarter.

Walmart shares fell 0.8% after hitting a record high earlier in the session, but the S&P 500 retail <.SPXRT> and consumer discretionary <.SPLRCD> indexes were higher after company's report.

“We have on display this front-end of the economy, the U.S. consumer, that remains resilient and remains in a healthy place in front of a very key holiday spending timeframe for the economy," said Margaret Reid, senior portfolio manager at The Private Bank at Union Bank in San Francisco.

That compares, Reid said, to "the back-end of the economy that still seems to be plagued and weighed by U.S.-China trade and global economic and political volatility."

The Dow Jones Industrial Average <.DJI> fell 36.93 points, or 0.13%, to 27,746.66, the S&P 500 <.SPX> lost 1.41 points, or 0.05%, to 3,092.63 and the Nasdaq Composite <.IXIC> dropped 12.35 points, or 0.15%, to 8,469.76.

Stocks have recently run to all-time highs, with the Dow and the S&P 500 posting record closing levels on Wednesday, helped by the Federal Reserve's interest rate cuts, third-quarter earnings topping low expectations and signs the economy may be bottoming.

Fed Chair Jerome Powell on Thursday said the risk of the U.S. economy facing a dramatic bust is remote, and investors will next be looking to U.S. retail sales data on Friday to gauge the health of the economy.

On Thursday, real estate <.SPLRCR> was the top-performing S&P 500 sector, rising 0.5%, while energy <.SPNY> and consumer staples <.SPLRCS> lagged along with tech.

Dillard's Inc shares jumped 14.8% after the department store chain's quarterly results.

Advancing issues outnumbered declining ones on the NYSE by a 1.20-to-1 ratio; on Nasdaq, a 1.21-to-1 ratio favored decliners.

The S&P 500 posted 23 new 52-week highs and 2 new lows; the Nasdaq Composite recorded 64 new highs and 105 new lows.

(Additional reporting by Arjun Panchadar and Agamoni Ghosh in Bengaluru; Editing by Nick Zieminski)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

also read

Intel seeks $10 billion in subsidies for European chip plant
News &amp; Analysis

Intel seeks $10 billion in subsidies for European chip plant

By Douglas Busvine BRUSSELS/BERLIN (Reuters) -Intel wants 8 billion euros ($9.7 billion) in public subsidies towards building a semiconductor factory in Europe, its CEO was cited as saying on Friday, as the region seeks to reduce its reliance on imports amid a shortage of supplies. The pitch is the first time Pat Gelsinger has publicly put a figure on how much state aid he would want, as Intel pursues a multibillion-dollar drive to take on Asian rivals in contract manufacturing. "What we're asking from both the U.S

China's Ximalaya, Qiniu file for U.S. IPOs
News &amp; Analysis

China's Ximalaya, Qiniu file for U.S. IPOs

(Reuters) -Ximalaya, backed by China's Tencent Holdings, filed for an initial public offering (IPO) in the United States on Friday, cashing in on growing demand as more people tune in to podcasts while staying at home during the pandemic. China's Qiniu Ltd, a cloud-based platform-as-a-service provider backed by Alibaba Group Holding Ltd, also filed paperwork for a U.S. IPO

Donerail pushes gaming headset maker Turtle Beach to explore a sale - sources
News &amp; Analysis

Donerail pushes gaming headset maker Turtle Beach to explore a sale - sources

By Greg Roumeliotis (Reuters) - Donerail Group, an investment firm led by former activist hedge fund Starboard Value LP executive Will Wyatt, has amassed a stake in Turtle Beach Corp and is pushing the maker of gaming headsets to explore a sale, people familiar with the matter said on Friday. The move represents a bet that Turtle Beach could attract acquisition interest from peers such as Corsair Gaming Inc and GN Store Nord A/S, as the video game market continues to benefit from people looking for entertainment options at home during the COVID-19 pandemic