Dow Dips in Afternoon
Coming off Tuesday’s disastrous 370 point drop, the Dow trended up in the morning, but couldn’t hold the gains in the afternoon. Just before noon, the index was up almost to 12,400 after opening at 12,257, but afternoon selling dropped the index down to its close at 12,200. Cisco and Macy’s reported bad news which contributed to the decline.
Cisco forecasted 10% growth over the next few months, well below the 15% that analysts were expecting. The company released an earnings report that, while in line with analysts’ lowered expectations, still insinuated that the tech sector is weak. The company’s stock was pounded for an 8% loss in after hours trading.
The retail sector suffered also, led downward by Macy’s. Macy’s announced that they were cutting 2,300 management jobs and combining three regional divisions. According to an article on Yahoo!, there was other bad news also:
Meanwhile, Macy’s reported that sales at stores open at least a year, a key barometer of a retailer’s health, fell 7.1 percent in January. Analysts surveyed by Thomson Financial had expected a 5.9 percent drop.
The retail giant’s stock was down over 4% during the day, and gave up almost 2% more after hours.
