Cisco's Beat Fails to Lift Dow

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

Despite an impressive earnings report from Cisco Systems (Nasdaq: CSCO  ) after the bell yesterday, the market is nevertheless lower today on fears emanating from Europe and continued uncertainty surrounding the fiscal cliff. At roughly halfway through the trading session, the Dow Jones Industrial Average (INDEX: ^DJI  ) is down by 62 points, or 0.48%.

People took to the streets across Europe today in a coordinated strike against austerity measures. The move comes a day after the Continent's financial ministers met in Brussels to decide whether or not to release the next tranche of financial support to Greece. Union members in Spain, Portugal, and Greece called for their respective governments to pursue programs geared toward economic growth as opposed to spending cuts on things like health care and education.

With respect to corporate news, after the market closed yesterday, Cisco Systems surprised the market with better-than-expected results. The company reported adjusted earnings per share of $0.48 on revenue of $11.9 billion. Analysts had predicted earnings to come in at $0.46 a share on revenue of $11.78 billion.

According to Cisco's CEO John Chambers: "We delivered record results this quarter -- with revenue growth of 6 percent and strong earnings-per-share growth -- demonstrating our vision and strategy are working. Our innovation engine, operational discipline and on-going evolution are enabling us to differentiate in the market."

Shares in the technology giant are up by 6.7% in intraday trading.

Also in the tech space, shares of Facebook (Nasdaq: FB  ) are surprisingly higher this morning by nearly 8%. It's surprising because a lockup on the social media company's shares expires tomorrow, increasing its outstanding float considerably. Two previous lockup expirations both sent shares tumbling. Today's performance is leading some to make comparisons to Yelp (NYSE: YELP  ) , which saw a similar uptick in its share price following a lockup expiration as well.

Finally, shares of Home Depot (NYSE: HD  ) are leading the Dow lower today. The home improvement retailer was the best-performing stock on the index yesterday after reporting earnings for the recently concluded quarter. It benefited from an uptick in the housing market as well as stockpiling of supplies by consumers in the lead-up to Hurricane Sandy.

Cisco, once a high-flying tech darling, is now on the radar of value-oriented dividend lovers. Get the lowdown on the routing juggernaut in our premium report. Our report also has you covered with a full year of free analyst updates to keep you informed as their story changes, so click here now to read more.

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2112539, ~/Articles/ArticleHandler.aspx, 10/27/2016 11:12:03 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,192.23 -7.10 -0.04%
S&P 500 2,134.91 -4.52 -0.21%
NASD 5,234.16 -16.11 -0.31%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/27/2016 10:56 AM
CSCO $30.49 Down -0.06 -0.18%
Cisco Systems CAPS Rating: ****
FB $130.42 Down -0.62 -0.47%
Facebook CAPS Rating: ***
HD $122.82 Up +0.11 +0.09%
Home Depot CAPS Rating: ****
YELP $33.09 Down -0.40 -1.19%
Yelp CAPS Rating: **