4:23 PM, Nov 11, 2010 --
- NYSE down 24.22 (-0.3%) to 7,723.24
- DJIA down 73.94 (-0.7%) to 11,283
- S&P 500 down 5.17 (-0.4%) to 1,214
- Nasdaq down 23.26 (-0.9%) to 2,556
- Hang Seng up 0.82%
- Nikkei up 0.31%
- FTSE down 0.03%
(+) CXDC beats Q3 estimates.
(+) IR to be added to S&P 500.
(+) LVLT inks video streaming deal with Netflix.
(+) OPTC sold to TKH Group.
(+) DNDN submits post-approval supplement for provenge BLA for manufacturing facility.
(+) SI hikes dividend, issues improved results.
(-) CSCO issues sales warning.
(-) FLEX, JBL downgraded in wake of CSCO results.
(-) AA downgraded.
(-) JBLU downgraded.
(-) YHOO receives Neutral rating as Macquerie initiates coverage; GOOG also slips despite upbeat coverage.
(-) CNAM withdraws 2010 guidance due to more rolling blackouts.
Stocks fell as investors react to a disappointing outlook from Cisco Systems (NASDAQ:CSCO), renewed concerns over sovereign debt in Europe, which is pushing the dollar higher, and warning signs out of China about inflation. Dow-listed Cisco's results weighed on sentiment throughout the tech-concentrated Nasdaq. CSCO's 16% drop is its worst showing in some 16 years.
What's more, escalating worries over Ireland's debt problems hobbled Europe and the broader global stock markets. In reaction, Irish government bonds have been rising on an almost daily basis to their highest levels since the euro was introduced in 1999.
Investors are also eying the Group of 20 Summit in South Korea where world leaders are trying to develop plans to bolster a generally weaker global economy amid allegations of currency manipulation and widening trade gaps.
The U.S. bond market and government offices are closed today for the Veterans Day holiday; no economic data were due.
Yesterday, a disappointing report -- its outlook in particular -- from tech mainstay Cisco Systems, tipped stocks lower this morning. Cisco reported Q1 sales of $10.75 billion, just ahead of the analyst mean for $10.74 billion on Thomson Reuters. EPS were $0.42, two cents better than expectations. But the company expects Q2 revenue growth to increase 3% to 5% year-over-year. The Street is at 13% revenue growth. For 2011, the company expects revenue growth in the 9% to 12% range.
Meanwhile, Google (NASDAQ:GOOG) said it is not working on a social networking site to compete with Facebook, Reuters reported, citing a comment from a company executive.
Level 3 Communications (NASDAQ:LVLT) announced that it has been selected to serve as a primary content delivery network (CDN) provider for Netflix (NASDAQ:NFLX). It will support the company's streaming functionality and support storage for the entire Netflix library of content. As a result of the deal, Level 3 has accelerated plans to further invest in its CDN capacity. Level 3 will double its storage capacity and add 2.9 Terabits per second (Tbps) of globally available CDN capacity, which is in addition to the 1.65 Tbps that was deployed in the third quarter of 2010.
Commodities ended trading mixed as gold advanced while investors took stock of global economic worries. Crude futures finished flat after starting the day in positive territory.
Crude oil for January delivery finished flat at $87.81 a barrel. In other energy futures, heating oil was down 0.64% to $2.42 a gallon while natural gas fell 2.92%, to $3.92 per million British thermal units.
Gold futures finished higher amid continued worries over global currencies. Gold for December delivery finished up 0.3% to $1,403.30 an ounce. In other metal futures, silver rose 2.3% to $27.48 a troy ounce while copper rose 1.52% to $4.02 a pound.