Skip to main content

Stocks Drop for Fifth Straight Day

Tech investors weigh the good and the bad in Cisco's guidance.

Updated from 4:03 p.m. EST

The major averages extended their losing streak to five straight sessions Thursday, as blue-chips and tech stocks weakened late in the afternoon and ended lower.

Strong retail sales and strength in banking issues provided support for blue-chips earlier in the day, but tech investors were a little reluctant to buy following


(CSCO) - Get Cisco Systems Inc. Report

conservative outlook.


Dow Jones Industrial Average ended with a loss of 27.95 points, or 0.3%, to 9625.44. The

Nasdaq was down 30.60 points, or 1.7%, to 1782.11, and the

S&P 500 slipped 3.34 points, or 0.3%, to 1080.17.

Cisco easily beat Wall Street's expectations for the fiscal second quarter, posting earnings of 9 cents a share, excluding certain costs. Revenue for the quarter came in at $4.8 billion. Analysts were expecting the company to earn 5 cents a share on $4.5 billion in revenue.

The network equipment giant said gross margins improved and market share rose in a challenging market. On its conference call, CEO John Chambers said he expects flat to slightly higher revenue growth in the current quarter, but said he lacked the visibility to provide a long-term prediction. The shares finished down $1.55, or 8.3%, to $17.06.

On the economic front, the Labor Department said initial jobless claims fell to 376,000 in the week ended Feb. 2, from 391,000 the previous week. Economists were expecting the number of first-time claims to come in at 388,000.



made strides after Chairman Dennis Kozlowski told

Scroll to Continue

TheStreet Recommends


that he wouldn't have purchased CIT Group based on what he knows now. The conglomerate's chairman also said the company has changed its bylaws to prohibit the type of $20 million kickback that was given to a Tyco director for closing the CIT deal.


C.R. Bard


ended its proposed $3.1 billion merger with Tyco, citing the uncertainties surrounding Tyco's plan to break into four separate entities. Tyco's shares gained $2.18, or 8.4%, to $28.10.



reported fourth-quarter earnings of 13 cents a share, a penny shy of the consensus estimate. Revenue for the quarter rose 7.1% to $5.30 billion, compared with the $5.47 billion consensus. The long-distance firm, mired in a three-day slump, lowered its guidance for 2002 as it copes with a cutback in technology spending and fierce competition. The company's shares climbed 83 cents, or 12.4%, to $7.52.



bounced back as well. On Wednesday, the company confirmed that the

Securities and Exchange Commission

has made an informal inquiry concerning Calpine's disclosure policy with analysts who cover the stock. The company said that its disclosures practices have been appropriate. Shares of Calpine were up $1.34, or 19.7%, to $8.14.

A host of retailers reported their January numbers.


(WMT) - Get Walmart Inc. Report

said that same-store sales increased 8.3% in January, and

J.C. Penney

(JCP) - Get J. C. Penney Company, Inc. Report

said comparable sales rose 5.9%. Both stocks ended lower.

Financial services firm

Household International

(HI) - Get Hillenbrand Inc Report

reclaimed ground after falling in the prior session, advancing $3.30, or 7.4%, to $48.01.

Overture Services


, which also had a rough day Wednesday, was added 26.4% to $22.65.

Treasuries were mostly lower. Around 4 p.m. EST, the 10-year note was down 3/32 to 99 22/32, yielding 4.91%.

Overseas, stocks were mainly higher. London's FTSE 100 gained 1.1% to 5127, and Germany's Xetra Dax added 1.2% to 4863. Japan's Nikkei 225 climbed 1.7% to 9583, and the Hang Seng lost 1.1% to close at 10,410.