Futures Lower After Weak Cisco Results
Futures pointed to a lower open Thursday following disappointing results from Cisco Wednesdsay afternoon, and troubles with European debt.
Cisco shares tumbled nearly 17 percent in pre-market trading. The networking company reported a profit after the bell Thursday that topped expectations, but its revenue outlook was below what the Street was forecasting.
The news was hitting futures on the tech-heavy Nasdaq especially hard. Despite an upgrade by Morgan Stanley to "overweight" from "equal-weight," Intel fell in the pre-market. Morgan Stanley sees Intel's Sandy Bridge product will enable "the next generation of smaller, optimized PC computing devices."
The cost of debt in Ireland,meanwhile, continued to soar as the yield spread between 10-year Irish and German bondsreached its widest levels ever. Concerns with Ireland pushed the euro lower and the dollar higher.
Comments from the G20 meeting in Seoulfailed to encourage the broader market.
Treasury Secretary Tim Geithner told CNBC the United States would never seek to weaken its currency to gain a competitive advantage. That helped the dollar index slightly, but did little for stocks. Meanwhile, former Federal Reserve chief Allen Greenspan wrote in the Financial Times that the U.S. is pursuing a policy of a weaker dollar and pushing up exchange rates around the world.
Economist Joseph Stiglitz weighed in, saying quantitative easing won't boost the economy, but risks starting trade wars.
In further earnings news, Viacom reported better-than-expected quarterly results, citing strong results at its MTV unit.
Wal-Mart is giving a holiday shoppers a break this year by offering free shipping on all online items through Dec. 20.
Boeing shares continued to trade weak on Thursday after leading the Dow lower on Wednesday following news of troubles with the airline maker's 787 Dreamliner. Boeing has halted future testsof the 787.
European shares were mostly lower as concern over debt in peripheral euro zone countries continued to spook investors. Asian stocks ended mixed with the Nikkei 225 at a 4.5 month high.
Siemens put forward proposals for a sharp rise in its full-year dividend and ups its 2011 outlook. The company's earnings beat forecasts. Earnings from Viacom are also due before the opening bell.
Banks, government offices, and the bond market will be closed due to Veterans Day holiday. The U.S. stock market will be open for normal trading.
On Tap This Week:
WEDNESDAY: After-the-bell earnings from Cisco.
THURSDAY: Veterans Day – Bond market closed, stocks and futures markets open, G20 mtg. begins, Earnings from Kohl’s, Disney and Nvidia.
FRIDAY: APEC CEO summit, Consumer sentiment, Earnings from DR Horton and JCPenney.
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