Tech shares drag Wall Street lower

08:46, November 12, 2010      

Email | Print | Subscribe | Comments | Forum 

U.S. stocks fell on Thursday, led by sell-offs among technology stocks after Cisco reported a disappointing revenue outlook for its 2011 fiscal year.

Major indexes were well off session lows at the close, but still mired in negative territory. Falling shares outnumbered gaining ones two to one on the New York Stock Exchange, where volume came to 950 million shares.

As of the market close, the Dow Jones industrial average fell 73.94, or 0.65 percent, to 11,283.10. The Standard &Poor's 500 index dropped 5.17 points, or 0.42 percent, to 1,213.54 and the Nasdaq declined 23.26 points, or 0.90 percent, to 2,555.52.

The market opened with steep losses on Thursday after Cisco Systems, the world's top manufacturer of network routers and switches, issued a disappointing revenue forecast for the year of 2011, underscoring the risks that a weak economy posed to corporate profits. Its share slumped more than 16 percent, making the tech-heavy Nasdaq much weaker than other major indexes throughout the day.

With no major economic data released on Thursday due to the Veterans' Day holiday, investors were focusing the G20 summit in Seoul, capital of South Korea to see if world leaders could come up with plans to help the weak global economy.

However, most analysts were pessimistic about the outcome of the meeting, as the European sovereign debt crisis and currency tensions once again move to center stage. The euro fell against the dollar as concern grew regarding the ability of fiscally weaker euro-zone countries to handle their debt. Meanwhile, the costs to insure against default on government debt issued by Portugal, Ireland and Spain all hit record highs. There are mounting speculations that the debt problems in Ireland have been out of control and the government will have to ask for international aid, just like Greece did early this year.

In commodities, gold futures edged higher while crude-oil futures settled flat after earlier hitting a 25-month high.

Source: Xinhua


  • Do you have anything to say?


Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • Chinese Navy soldiers hold an evening party marking the upcoming 62nd National Day aboard Chinese Navy hospital ship "Peace Ark" in the Pacific on Sept. 28, 2011. The Chinese National Day falls on Oct. 1. (Xinhua/Zha Chunming)
  • Photo taken on Sept. 30, 2011 shows the crowd at the plaza of Beijing Railway Station in Beijing, capital of China. The railway transportation witnessed a travel peak with the approach of the seven-day National Day holidays on Friday. (Xinhua)
  • A man wearing high-heel shoes takes part in the 3rd annual Walk a Mile in Her Shoes, an event when men literally walk in women's shoes to raise awareness about ending violence against women, at Yonge-Dundas Square in Toronto, Canada, Sept. 29, 2011. (Xinhua/Zou Zheng)
  • Photo taken on Sept. 29, 2011 shows a cargo ship in danger on the sea near Zhuhai City, south China's Guangdong Province. Cargo ship Fangzhou 6 of Qingzhou of southwest China's Guangxi Zhuang Autonomous Region lost control after water stormed into its cabin due to Typhoon Nesat on the sea near Zhuhai Thursday, leaving 12 crew members in danger. Rescuers rushed to the ship and saved them by using a helicopter. (Xinhua)
  • Actress Gong Li poses for L'Officiel Magazine. (Xinhua Photo)
  • Demonstrators from the Occupy Wall Street campaign hold placards as they march in the financial district of New York September 29, 2011. After hundreds of protesters were denied access to some areas outside the New York Stock Exchange on September 17, demonstrators set up a rag-tag camp three blocks away. Zuccotti Park is a campground festooned with placards and anti-Wall Street slogans. The group is adding complaints of excessive police force against protesters and police treatment of ethnic minorities and Muslims to its grievances list, which includes bank bailouts, foreclosures and high unemployment. (Xinhua/Reuters Photo)
Hot Forum Discussion