Cisco (CSCO), the largest maker of computer networking equipment, nosedived after its profit & sales forecast disappointed investors. Revenue in its Q2 will be $10.1-$10.3B &, excluding some costs, EPS will be 35¢ at most. These numbers are are far below projections of $11.1B for sales & EPS of 42¢. The company faced a “challenging economic environment” last quarter, CEO John Chambers said. He blamed the slump on lower gov spending in developed countries & market-share losses to rivals Competition also has forced Cisco to cut prices on some products & seek acquisitions to maintain growth. The stock plunged 3.60 (15%) challenging its lows for the year, one of its worst days ever & is dragging down the tech sector.
Cisco Plunges After Forecast Falls Short of Estimatesat Bloomberg
Cisco --- YTD
Dow is down 110, decliners over advancers 3-1 & NAZ is off 38. The S&P Financial Index is down 2+ to the 203s. MLPs are little changed, the index is down pennies while the REIT index fell 2 to just above 220. Treasuries are closed today. Oil is down pennies but gold rebounded, up 10 to 1409 & flirting with new record highs.
Alerian MLP Index --- 2 weeks
CSCO news came as a shock to the markets, another strong signal that all is not well with the US economic recovery. While Dow took a nasty hit, it's still near its yearly highs.
Dow Jones Industrials --- 2 weeks
Gold Super Cycle Link! Click Here
Find out what's inside Trend TV Click Here
Get your favorite symbols' Trend Analysis TODAY! Click Here
No comments:
Post a Comment