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US STOCKS-S&P 500, Dow flat as Cisco losses offset Walmart gains

Published 14/11/2019, 16:38
© Reuters.  US STOCKS-S&P 500, Dow flat as Cisco losses offset Walmart gains
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* Cisco falls on disappointing outlook

* Walmart gains after raising earnings forecast

* Weak data from China, Germany spark growth concerns

* Indexes: Dow flat, S&P up 0.07%, Nasdaq off 0.07%

(For a live blog on the U.S. stock market, click LIVE/ or

type LIVE/ in a news window.)

By Arjun Panchadar

Nov 14 (Reuters) - The S&P 500 and the Dow Jones Industrial

Average were unchanged on Thursday, but still hovered near

record levels as a dour forecast from Cisco offset gains in

Walmart after its strong outlook.

Cisco Systems Inc CSCO.O fell 7.6% after the network gear

maker said current-quarter revenue would drop 3% to 5% amid

declining global spending on its routers and switches, some of

which are made in China. However, Walmart Inc WMT.N jumped 1.8% as the world's

biggest retailer raised its annual earnings outlook. Its results

pointed to strong domestic consumer demand, ahead of a crucial

retail sales report on Friday. Retail stocks .SPXRT rose 0.61% on Walmart's news.

Eight of the 11 major S&P sectors were higher, with the

consumer discretionary sector .SPLRCD providing the biggest

boost. The tech index .SPLRCT was 0.20% lower, as Cisco shares

weighed.

The stock indexes had an uneventful open as weak data from

China and Germany rekindled worries of a global slowdown due to

a prolonged U.S.-China trade war. "The U.S. economy continues to do well and it does appear

the slow path may be coming to an end, but you are still growing

close to 2%, which is not excessively strong," said Peter

Cardillo, chief market economist at Spartan Capital Securities

in New York.

"However, it's better than what we are seeing in other parts

of the world, like the eurozone in particular."

Hopes of a resolution to the trade dispute as well as an

upbeat corporate earnings season have spurred Wall Street to

record highs this month, but U.S. President Donald Trump

recently tempered expectations with the threat of more tariffs

if China failed to reach a deal.

China said on Thursday the two sides were holding "in-depth"

trade discussions, and cancelling tariffs was an important

condition to reaching a deal. Federal Reserve Chair Jerome Powell is speaking before the

House Budget Committee on Thursday. He made comments about a

"sustained expansion" ahead for the U.S. economy, which

supported stock markets in the previous session.

At 10:23 a.m. ET the Dow Jones Industrial Average .DJI was

up 1.98 points, or 0.01%, at 27,785.57, the S&P 500 .SPX rose

2.08 points, or 0.07%, at 3,096.12 and the Nasdaq Composite

.IXIC was down 5.99 points, or 0.07%, at 8,476.11.

Viacom Inc VIAB.O gained 2.7% after the MTV-owner beat

quarterly profit estimates, helped by a rise in domestic

advertising revenue. Kraft Heinz Co KHC.O dropped 3.3% after a report that

Goldman Sachs had downgraded the food and beverage maker's stock

to "sell".

Advancing issues outnumbered decliners by a 1.79-to-1 ratio

on the NYSE. Declining issues outnumbered advancers for a

1.01-to-1 ratio on the Nasdaq.

The S&P index recorded 15 new 52-week highs and one new low,

while the Nasdaq recorded 37 new highs and 54 new lows.

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