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US STOCKS-Wall St eases from record highs on coronavirus concerns, Cisco results

Published 13/02/2020, 16:20
© Reuters.  US STOCKS-Wall St eases from record highs on coronavirus concerns, Cisco results
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* Cisco Systems drops after lackluster forecast

* Caterpillar rises as Goldman Sachs upgrades to 'buy'

* New cases in China jump under new diagnosis method

* Indexes down: Dow 0.32%, S&P 0.21%, Nasdaq 0.30%

(Updates to open)

By Medha Singh

Feb 13 (Reuters) - Wall Street's main indexes eased from

record highs on Thursday, pressured by shares of Cisco after its

disappointing quarterly forecast, while a spike in new

coronavirus cases in China weighed on the sentiment.

The Chinese province at the center of the coronavirus

outbreak reported a record rise in deaths and thousands more

infections using a new diagnostic method, casting fresh

uncertainty over the scale of the virus outbreak. A day earlier, investors had bought on signs that the virus

spread was slowing, lifting the benchmark S&P 500 .SPX and the

Nasdaq .IXIC to their third straight closing highs. Dow Jones

Industrials .DJI settled at an all-time high on Wednesday for

the first time since Feb 6.

"The virus news coming out of China (is) a bit concerning,

especially when investors thought it was all behind them," said

Paul Nolte, portfolio manager at Kingsview Asset Management in

Chicago.

"We are also due for at least a little bit of a pullback."

Cisco Systems Inc CSCO.O shares declined more than 6%, the

biggest drag on the three indexes, after the network gear

maker's lackluster revenue and profit forecasts. NetApp Inc NTAP.O tumbled about 11% as the data storage

equipment maker's current-quarter profit forecast fell short of

expectations.

Technology stocks .SPLRCT , which have surged more than 10%

this year, slipped 0.4%. Seven of the 11 major S&P sectors were

lower.

At 9:54 a.m. ET, the Dow Jones Industrial Average .DJI was

down 95.16 points, or 0.32%, at 29,456.26 and the S&P 500 .SPX

was down 7.01 points, or 0.21%, at 3,372.44. The Nasdaq

Composite .IXIC was down 28.81 points, or 0.30%, at 9,697.15.

Among other stocks, Kraft Heinz Co KHC.O shed 7.6% as it

missed quarterly sales estimates and wrote down the value of

some businesses - including coffee brand Maxwell House - by $666

million. Caterpillar Inc CAT.N rose 0.4% after Goldman Sachs

upgraded the construction and mining equipment maker's shares to

"buy".

The fourth-quarter earnings season is winding down with 351

S&P 500 companies having reported so far. Of those, 70.9% have

topped profit estimates, according to IBES data from Refinitiv.

Declining issues outnumbered advancers for a 1.31-to-1 ratio

on the NYSE and for a 1.45-to-1 ratio on the Nasdaq.

The S&P index recorded 24 new 52-week highs and two new

lows, while the Nasdaq recorded 46 new highs and 23 new lows.

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