Stocks edge mostly higher, Cisco drags tech lower
NEW YORK (AP) — Major market indexes are edging mostly higher on Wall Street in early trading today, but a sales slump at network equipment maker Cisco Systems dragged other technology stocks lower.
The Dow Jones industrial average inched up two points to 15,824 in the first hour of trading.
Cisco reported quarterly sales after the closing bell Wednesday that were well below what analysts were expecting. Cisco is considered a technology industry bellwether because the company manufacturers the equipment that makes up the backbone of the Internet: routers, servers, fiber optics, etc. Its results are also seen as a proxy for business spending on technology.
Cisco also said revenue for the current quarter could fall as much as 10 percent from a year ago. The company's chief executive, John Chambers, blamed the 16-day partial government shutdown last month as well as the near-breach of the nation's borrowing limit as reasons why business was down.