Cisco Systems beat earnings estimates after the close on Tuesday, but revenues came in lighter than expected and the company lowered forward guidance.
Stocks fell during the day on insurance company losses and jitters ahead of U.S. Secretary of State Colin Powell’s speech to the UN on Wednesday.
The Nasdaq fell 17 to 1306, the S&P 500 declined 12 to 848, and the Dow fell 96 to 8013. Volume rose to 1.4 billion shares on the NYSE, and 1.39 billion on the Nasdaq. Decliners led 19-13 on the NYSE, and 19-12 on the Nasdaq. Downside volume was 75% on the NYSE, and 74% on the Nasdaq. New highs-new lows were 62-87 on the NYSE, and 53-101 on the Nasdaq.
After the close, Cisco slipped after beating earnings estimates by 1-2 cents a share, but revenues of $4.71 billion missed $4.73 billion estimates. Cisco guided April quarter revenues 2-3% lower, and said companies are becoming even more conservative than they were last quarter. Computer Sciences
and WebEx
also missed top line estimates but beat on the bottom line. FindWhat.com
and Pegasus
beat estimates.
During the day, Solectron gained 1.2% on a $1.4 billion deal with HP
.
Level 3 rose 3% after beating estimates, completing the acquisition of Genuity, and winning a contract from Verizon
.
Alcatel lost 3% on a warning. Tellabs
fell 5.6% after its CFO resigned.
Avenue A gained 11% on its earnings.
Overture , off 3.3%, scored a deal with ESPN.com, but the company will be sharing duties with Inktomi.
E*Trade , down 3.2%, became the number two ATM player with an acquisition.
Texas Instruments , off 2.5%, unveiled new wireless chips. AMD
gained fractionally after shipping a new chip.
IBM , down 1.4%, announced new data management software.
Microsoft , down 2.6%, removed its Virtual Machine from Windows XP in the latest wrinkle in the company’s ongoing battle with Sun
.
Affiliated Computer Services , off 1.5%, lost a federal contract.
NextLevel slipped 2.5% after urging shareholders to reject Motorola’s
buyout offer.
Apple , down 0.4%, updated its lineup.
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