Sharp differences among global leaders over trade policies and a flaring currency dispute that was keeping investors on toes lost some significance on Thursday as Cisco System's disappointing outlook surprised the market and sent stocks lower. The Dow average plunged more than 126 points before regaining some lost ground.
The blue-chip average closed with a drop of 74 points, or 0.7%, to 11283.10. Cisco CSCO was the average's leading decliner, dropping more than 16%. The plunge shaved $24 billion off the technology bellwether's market capitalization.
The broader S&P 500 index fell slightly more than 5 points, or 0.4%, to 1213.54 and the technology-focused Nasdaq Composite index fell 23 points, or 0.9%, to 2555.52. On the New York Stock Exchange, two stocks fell in price for every one that advanced. Less than one billion shares exchanged hands.
Cisco lowered its sales outlook for a second successive quarter, leaving investors with bitter questions about the company's business model. Cisco's dour outlook weighed on other technology shares, with Microsoft MSFT losing 1% to $26.68 and Hewlett-Packard HPQ falling 2.5% to $43.06. IBM IBM closed off 0.8%. Intel INTC, however, gained 0.8% after Morgan Stanley MS upgraded the shares to "overweight" from "equal weight," saying the company's Sandy Bridge computer chips would dominate the next generation of smaller PCs.
Today some of the big names scheduled to report their numbers include JC Penney JCP, Agilent Technology A and DR Horton DHI.
Meanwhile, Boeing's BA announced that the beleaguered Dreamliner program was suspended from further test flights until the reason for a cabin fire could be established. Disney DIS reported disappointing earnings, with comparisons hurting against that year-ago quarter that was helped by an additional week despite strong returns from "Toy Story 3."
Gold edged up 0.3% to $1,403.30. Crude hit a 25-month high, though closing flat on the session at $87.76. Bond markets were closed for Veterans Day.
Financial sector shares fell 0.9%, weighing on the broader market. In a CNBC interview, key bank analyst Meredith Whitney noted she would sell regional bank shares, and opined buying banks on their dividend-increasing prospects was "foolhardy," in the backdrop of uncertainty surrounding mortgage lawsuits. Bank of America BAC dropped 1.6%, JP Morgan JPM fell 1.5%, Wells Fargo WFC 1.4%, and Citigroup C 1.4%.
AGILENT TECH (A): Free Stock Analysis Report
BOEING CO (BA): Free Stock Analysis Report
CISCO SYSTEMS (CSCO): Free Stock Analysis Report
D R HORTON INC (DHI): Free Stock Analysis Report
DISNEY WALT (DIS): Free Stock Analysis Report
HEWLETT PACKARD (HPQ): Free Stock Analysis Report
INTL BUS MACH (IBM): Free Stock Analysis Report
INTEL CORP (INTC): Free Stock Analysis Report
PENNEY (JC) INC (JCP): Free Stock Analysis Report
JPMORGAN CHASE (JPM): Free Stock Analysis Report
MORGAN STANLEY (MS): Free Stock Analysis Report
MICROSOFT CORP (MSFT): Free Stock Analysis Report
WELLS FARGO-NEW (WFC): Free Stock Analysis Report
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