Skip to main content

IT Sector Slides On Cisco Outlook

The futures stock on Wall Street fell in pre-market trading on Thursday after IT bellwether Cisco posted disappointing second quarter sales forecast.

According to The Globe and Mail, US future indexes were down before the market opened on Thursday indicating at a slow start.

Dow Jones Industrial Average futures was down by 34 points at 11,268 before the market opened. The Standard & Poor's 500 futures also slipped five points to 1209.1, as did Nasdaq 100 futures fell 14.75 points to 2159.75.

The fall came after Cisco reported an 8 per cent rise in profits but predicted a low sales forecast for the second quarter after the markets closed on Wednesday.

Cisco's lower-than-expected sales forecast as made investors worry about the rise in IT spending, a factor crucial to the recovery of the economy and caused a 16 per cent fall in its share price during pre-market trading hours.

The IT ginat's low sales forecast had also affected the share performance of other IT firms like Juniper, which saw a drop of 7 per cent in pre-market trading.