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US STOCKS-Wall Street drops as Cisco's dour outlook weighs

Published 14/11/2019, 18:17
© Reuters.  US STOCKS-Wall Street drops as Cisco's dour outlook weighs
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(For a live blog on the U.S. stock market, click LIVE/ or

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* Cisco falls on disappointing forecast

* Walmart posts strong third-quarter earnings, raises

outlook

* Weak data from China, Germany spark growth concerns

* Indexes down: Dow 0.16%, S&P 0.14%, Nasdaq 0.24%

(Changes comment, updates market action)

By Arjun Panchadar

Nov 14 (Reuters) - U.S. stocks slipped on Thursday, weighed

down by technology shares after Cisco's dour forecast raised

worries of a global economic slowdown and overshadowed strong

results from big box retailer Walmart.

The pullback in the benchmark S&P 500 .SPX and blue-chip

Dow Jones Industrial Average .DJI came a day after they closed

at record highs.

Cisco Systems Inc CSCO.O fell 7.5% 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. Walmart Inc WMT.N posted robust same-store sales growth

and profit, while also raising its full-year earnings forecast.

However its shares reversed course to edge 0.4% lower after

hitting a record high in the session. Strong results from the world's largest retailer come ahead

of a crucial retail sales report by the U.S. Census Bureau on

Friday.

"Despite all the negative headlines, we are near all-time

highs and that is because the fundamentals of the underlying

economy are still strong," said Josh Markman, managing director

at Bel Air Investment Advisors.

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

utilities .SPLRCU and real estate .SPLRCR gaining the most.

The tech index .SPLRCT was 0.41% lower, as Cisco weighed.

The stock indexes had an uneventful open as weak data from

China and Germany rekindled worries of growth concerns due to a

prolonged U.S.-China trade war. Hopes of a resolution to the trade dispute as well as a

largely 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.

Federal Reserve Chair Jerome Powell is speaking before the

House Budget Committee on Thursday. On Wednesday, he spoke about

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

supported stock markets in the previous session.

At 11:39 a.m. ET the Dow Jones Industrial Average .DJI was

down 43.22 points, or 0.16%, at 27,740.37, the S&P 500 .SPX

was down 4.23 points, or 0.14%, at 3,089.81 and the Nasdaq

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