Get ready to hear about
. After the market closed yesterday, the networking giant said it missed earnings expectations for the first time in three years. Worse, the company said revenue growth would grind to a halt in coming periods.
The industry's slowdown has now hit one of the market's darlings.
took a close look at what
Cisco's news means.
The news dragged down stock futures this morning. At 6:45 a.m. EST, futures for the large-cap
were down 54 to 2436, almost 51 points below
fair value. This indicates weakness in tech stocks today. Futures for the
S&P 500, which track the broad stock market, were off 5.70 to 1350.60, about 7 points below fair value.
Fair value is a good gauge of how stocks will trade in early action. This morning, signs point south.
Cisco is off 11.2% to $31.75 in preopen trading on
, the electronic brokerage where investors can get in their trades before the opening bell. The company's 52-week low is $31.94. Competitor
lately was off 5.1% in early trading.
On the battered chip front,
was lower by 6.9%. And chipmaking giant
was off 2.9%.
Cisco's impact was being felt far and wide. Stocks in Europe were lower, in part, on the news. Also,
said it is cutting the valuation of its initial public offering for its mobile phone group. The
in London was lately off 70.10, or 1.11%, to 6223.30. Through the Chunnel, the French
was losing 75.86, or 1.3%, to 5776.49 and the German
was falling 80.55, or 1.2%, to 6612.48.
Asian markets, however, finished higher. The
was up 136.23, or 0.86%, to 16,049.47 and the
gained 96.16, or 0.72%, to 13,366.01.
For more on global markets, see
And for more on our after-hours coverage, check out Diane Hess' insight into Monday's market in
The Night Watch.