Nasdaq Tanks Ahead of Cisco Earnings

Mirroring a broader stock selloff due to growing economic worries, tech stocks are drastically down.
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NEW YORK (TheStreet) -- Investors will be looking to Cisco's (CSCO) - Get Report earnings report after the close to help reverse tech stocks' huge selloff Wednesday.

>>Cisco's On Deck

Tech stocks transformed into a sea of red as skittish investors reacted to a growing climate of economic uncertainty. With the odds of a double-dip recession increasing, stocks were dropping drastically thanks to news that the U.S. trade deficit unexpectedly grew in June and that the

Federal Open Market Committee

downgraded its economic outlook.

Tech's biggest hitters have been powerless to reverse this trend. Companies like Cisco,

Hewlett-Packard

(HPQ) - Get Report

,

Apple

(AAPL) - Get Report

, and

Intel

(INTC) - Get Report

were all heading southward.

The Nasdaq was down 65 points to 2213, although the slump has stopped short of May's flash-crash plunge that saw the Nasdaq plummet more than 82 points.

Cisco, which analysts say should report upbeat numbers

-- it's expecting 42 cents a share on revenue of $10.9 billion, according to Yahoo! Finance -- was down about 3% to $23.61. Cisco, whose performance and CEO musings are often used as a barometer for the rest of tech, should see strength in its high-end networking business.

A solid quarter, however, is no guarantee of a Cisco selloff. The company posted strong third-quarter results earlier this year, although investors

responded negatively to European financial concern.

The company's stock dipped 2.31% the day after Cisco released its numbers, and there is every possibility that investors could be equally skittish this time around.

Then there's

H-P, whose mess with former CEO Mark Hurd

has had investors spooked for nearly a week. Its shares were down 3.33% to $40.92; its stock is down more than 10% since last Friday when the company announced Hurd's resignation.

Even

beloved Apple

, whose strong product sales and promising fall product launches have helped deflect Wall Street scorn, wasn't immune to the market flux. Its shares were down more than 3% to $250.84.

Cree

(CREE) - Get Report

,

the LED manufacturer

whose products are featured in video screens and video screens among other things, was one of the Nasdaq's biggest decliners, down more than 14% to $59.30.

-- Reported by James Rogers in New York