Cisco Systemsfell 3.5% Wednesday after its second supplier in a week warned of weakness in the networking sector.
Jabilreported strong results after the close on Tuesday, but the company warned of softness in its networking sales as customers reduce inventory. Jabil’s comments echoed similar remarks last week by Celestica.
Deutsche Bank downgraded Cisco to Neutral on the news. Juniper Networkslost 3.8% in sympathy.
The broader market tumbled as traders digested the Federal Reserve’s latest interest rate hike and surging oil prices. Disappointing results from Morgan Stanleyalso hurt stocks.
The Nasdaq plunged 35 to 1885, the S&P 500 lost 15 to 1113, and the Dow fell 135 to 10,109. Volume rose to 1.38 billion shares on the NYSE, and 1.61 billion on the Nasdaq. Decliners led 23-9 on the NYSE, and 22-7 on the Nasdaq. Downside volume was 84% on the NYSE, and 78% on the Nasdaq. New highs-new lows were 103-27 on the NYSE, and 50-37 on the Nasdaq.
After the close, Cognosbeat estimates.
During the day, Pricelinejumped 8% after the company reaffirmed guidance and announced the acquisition of Britain’s Active Hotels.
Jabil, Tibcoand Comtechsurged on their results.
Intrawarefell 8% on its results.
CAslipped after its former CEO was indicted on securities fraud charges.