Tech Shares Lead Markets Lower
November 14 2019 - 10:22AM
Dow Jones News
By Caitlin Ostroff
U.S. stocks bobbed around the flat line Thursday, putting the
market's rally on hold, after a disappointing forecast from Cisco
Systems pulled some other technology stocks lower.
Both the Dow Jones Industrial Average and the S&P 500 were
mostly flat after closing at records a day earlier. The blue-chip
index was up 7 points, or less than 0.1%, to 27790, while the
S&P 500 fell less than 0.1%. The Nasdaq Composite declined
0.2%.
Cisco said late Wednesday that it expects to book its first
quarterly revenue decline in more than two years. The networking
giant, considered a proxy for corporate high-tech hardware demand,
blamed lighter customer spending for the lackluster outlook.
Shares of Cisco fell 6%, dropping along with several other
technology stocks, including shares of Juniper Networks and F5
Networks, which declined 1.7% and 0.9%, respectively.
Investors also contended with ongoing questions around whether
the U.S. and China will reach a trade truce and weak economic data
out of China.
China reported disappointing numbers for industrial output,
household consumption and fixed-asset investment. The figures added
to evidence that the world's second-largest economy is broadly
slowing -- as consumer inflation accelerates. The data follows a
Wall Street Journal report that trade talks between the U.S. and
China have hit a snag over farm purchases.
In Europe, the Stoxx Europe 600 fell 0.2%.
Shares of Mercedes-Benz maker Daimler AG fell 3.4% after it said
Thursday that it plans to cut jobs and slash personnel costs to
offset expenses required to lower car emissions. Luxury apparel
maker Burberry Group shares rose 2.4% after it beat expectations in
first-half earnings, adding to the broad rebound in luxury stocks
this year.
Asian stocks were mixed, with the Shanghai Composite up 0.2%
while Hong Kong's Hang Seng waned 0.9% as antigovernment protests
snarled the city. Clashes between police and protesters have
intensified in recent days. Japan's Nikkei 225 fell 0.8% following
weaker-than-expected third-quarter gross domestic product data, and
Korea's Kospi gained 0.8%.
-- Michael Wursthorn contributed to this article.
Write to Caitlin Ostroff at caitlin.ostroff@wsj.com
(END) Dow Jones Newswires
November 14, 2019 10:07 ET (15:07 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
Cisco Systems (NASDAQ:CSCO)
Historical Stock Chart
From Mar 2024 to Apr 2024
Cisco Systems (NASDAQ:CSCO)
Historical Stock Chart
From Apr 2023 to Apr 2024