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While the stock is trading off its post-market lows last night, shares of Cisco (NASDAQ:CSCO) are still trading down a little over 7% in the pre-market following last night's weak earnings report. Due in part to the negative reaction to CSCO's earnings, the overall market, and more specifically the Technology sector, are trading sharply lower.

While there has been a lot of talk about how CSCO is a market bell-weather, we would remind investors that while the stock has outperformed so far this year, it has not exactly been one of the leaders during the current bull market. In terms of the short term impact of CSCO's earnings, prior experience shows a mixed reaction to a weak earnings report from CSCO. As shown in the table below, there have been four other occurrences where CSCO traded down more than 5% in reaction to earnings. On those four days, the S&P 500 has averaged a decline of 0.2% with gains twice and losses twice. Focusing solely on the Technology sector, the results are more uniform to the downside. On the four days where CSCO traded down more than 5% following earnings, the Technology sector was down every time for an average decline of 1.2%.

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Source: Cisco Down On Earnings