November 14, 2019 / 5:19 PM / in 22 days

US STOCKS-Wall Street drops as Cisco's dour outlook weighs

(For a live blog on the U.S. stock market, click or type LIVE/ in a news window)

* Cisco falls on disappointing forecast

* Walmart posts strong third-quarter earnings, raises outlook

* Weak data from China, Germany spark growth concerns

* Indexes down: Dow 0.16%, S&P 0.14%, Nasdaq 0.24% (Changes comment, updates market action)

By Arjun Panchadar

Nov 14 (Reuters) - U.S. stocks slipped on Thursday, weighed down by technology shares after Cisco’s dour forecast raised worries of a global economic slowdown and overshadowed strong results from big box retailer Walmart.

The pullback in the benchmark S&P 500 and blue-chip Dow Jones Industrial Average came a day after they closed at record highs.

Cisco Systems Inc fell 7.5% after the network gear maker said current-quarter revenue would drop 3% to 5% amid declining global spending on its routers and switches, some of which are made in China.

Walmart Inc posted robust same-store sales growth and profit, while also raising its full-year earnings forecast. However its shares reversed course to edge 0.4% lower after hitting a record high in the session.

Strong results from the world’s largest retailer come ahead of a crucial retail sales report by the U.S. Census Bureau on Friday.

“Despite all the negative headlines, we are near all-time highs and that is because the fundamentals of the underlying economy are still strong,” said Josh Markman, managing director at Bel Air Investment Advisors.

Five of the 11 major S&P sectors were higher, with defensive utilities and real estate gaining the most.

The tech index was 0.41% lower, as Cisco weighed.

The stock indexes had an uneventful open as weak data from China and Germany rekindled worries of growth concerns due to a prolonged U.S.-China trade war.

Hopes of a resolution to the trade dispute as well as a largely upbeat corporate earnings season have spurred Wall Street to record highs this month, but U.S. President Donald Trump recently tempered expectations with the threat of more tariffs if China failed to reach a deal.

Federal Reserve Chair Jerome Powell is speaking before the House Budget Committee on Thursday. On Wednesday, he spoke about a “sustained expansion” ahead for the U.S. economy, which supported stock markets in the previous session.

At 11:39 a.m. ET the Dow Jones Industrial Average was down 43.22 points, or 0.16%, at 27,740.37, the S&P 500 was down 4.23 points, or 0.14%, at 3,089.81 and the Nasdaq Composite was down 20.04 points, or 0.24%, at 8,462.07.

Dillard’s Inc jumped 12.8% as the department store chain beat quarterly comparable-store sales estimates.

Kraft Heinz Co dropped 4.3% after a report that Goldman Sachs had downgraded the food and beverage maker’s stock to “sell”.

Advancing issues outnumbered decliners for a 1.45-to-1 ratio on the NYSE. Declining issues outnumbered advancers for a 1.02-to-1 ratio on the Nasdaq.

The S&P index recorded 19 new 52-week highs and one new low, while the Nasdaq recorded 52 new highs and 84 new lows. (Reporting by Arjun Panchadar and Agamoni Ghosh in Bengaluru; Editing by Saumyadeb Chakrabarty and Shounak Dasgupta)

Nuestros Estándares:Los principios Thomson Reuters
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below