Despite the Dow hitting a record high of 19,000 on Tuesday and the broader markets advancing foward, Cognizant Technology Solutions (CTSH) , Cisco Systems (CSCO) and Hewlett Packard Enterprise (HPE) did not fare as well.
Cognizant, an outsourcing company that is one of the largest users of H-1B visa workers that it places at U.S. companies in technology positions, may find it facing greater scrutiny under a Trump administration. Earlier this week, Trump, in a YouTube video, said he plans to "direct the Department of Labor to investigate all abuses of visa programs that undercut the American worker."
In 2009, Cognizant reached a settlement with the Labor Department and paid $500,000 in back wages to 67 H-1B visa holders, notes a Computer world report. And more recently, Cognizant was involved in a lawsuit that claimed it was supplying the workers to companies that were displacing American workers as a means to allegedly reduce payroll costs, a New York Times report notes.
Cognizant fell 3.5% to close at $53.18.
Cisco has continued to slump over the past week, after issuing a weaker than expected second quarter forecast. With its rival Hewlett Packard Enterprise reporting its quarterly results today, the networking giant continued to give up ground.
Cisco, a holding the Action Alerts PLUS portfolio, managed to beat Wall Street's first quarter estimates, but spooked investors by noting its second quarter adjusted earnings was expected to come in between 55 cents to 57 cents a share, with a revenue decline of 2% to 4% compared to year ago figures, according to a MarketWatch report.