* Cisco’s forecast drags on tech stocks
* Dept. store chains’ weak outlook hits retailers
* Oct. retail sales up less than expected
* Mylan up after Perrigo bid fails
* Indexes down: Dow 0.88 pct, S&P 0.77 pct, Nasdaq 1.02 pct (Adds details, updates prices)
By Abhiram Nandakumar
Nov 13 (Reuters) - U.S. stock indexes fell sharply on Friday, weighed down by consumer retail and technology stocks after disappointing forecasts from Cisco and department store chains for the key holiday shopping season.
The Dow and the Nasdaq were off nearly 1 percent, while the S&P 500’s decline was curtailed as the index held steady near its 100-day moving average.
Dow component Cisco fell 6 percent to $26.17 after it gave a weak forecast, citing a slowdown in order growth and weak spending outside the United States. The stock was the second-biggest drag on the S&P and the Nasdaq.
Oracle fell 3.2 percent, Microsoft 1.4 percent and Apple slid 2.1 percent.
Data showed U.S. retail sales rose less than expected in October, suggesting a slowdown in consumer spending that could temper expectations of a strong pickup in fourth-quarter economic growth.
The weak data follows disappointing reports from department store chains in the past two days. Macy’s and Nordstrom in particular have both reported disappointing results and lowered their full-year forecasts.
“The retail sales numbers this morning missed expectations. You couple that with the total lack of growth in Europe ... and if you’re a short term trader, it gives you something to throw out a bear scare on,” said Michael Scanlon, portfolio manager at John Hancock Asset Management in Boston.
Consumer stocks have been one bright spot this year as weak commodity prices, fears of a global slowdown and the anticipation of a U.S. rate hike have hit most stocks, especially those of materials, energy and industrial companies.
While the consumer staples sector moved into the red for the year earlier this week, consumer discretionary stocks are still the best performing of the 10 major S&P sectors, up 8.4 percent this year.
At 11:14 a.m. ET (1614 GMT), the Dow Jones industrial average was down 153.06 points, or 0.88 percent, at 17,295.01.
The S&P 500 was down 15.8 points, or 0.77 percent, at 2,030.17 and the Nasdaq Composite index was down 50.86 points, or 1.02 percent, at 4,954.22.
Seven of the 10 major S&P sectors were lower, with the consumer discretionary sector’s 1.84 percent fall leading the decliners. Technology stocks were down 1.5 percent.
Nordstrom sank 17 percent to $52.72. J.C. Penney fell 17.7 percent to $7.26.
Fossil slumped 31.9 percent after the watchmaker said current-quarter sales could fall as much as 16 percent.
Mylan jumped 13.5 percent to $49.08 after its $26 billion hostile bid for Perrigo collapsed. Perrigo fell 6 percent to $147.08. Mylan was the biggest influence on the S&P and Nasdaq.
Declining issues outnumbered advancing ones on the NYSE by 1,841 to 1,071. On the Nasdaq, 1,553 issues fell and 1,029 advanced.
The S&P 500 index showed no new 52-week highs and 31 new lows, while the Nasdaq recorded 15 new highs and 142 new lows. (Reporting by Abhiram Nandakumar in Bengaluru; Editing by Savio D‘Souza)