WALL Street's main indexes slipped from near record levels yesterday, as a dour forecast from tech stalwart Cisco Systems raised fresh questions about the global economy's health and overshadowed a strong report from big box retailer Walmart.
Cisco shares tumbled 7.3 per cent after the network gear maker forecast second-quarter revenue and profit below expectations as increasing global economic uncertainties kept clients away from spending more on its routers and switches.
Cisco's share decline weighed the most on the major indexes and helped drag the technology sector down 0.3 per cent.
In contrast, Walmart raised its annual outlook and the world's largest retailer posted better-thanexpected earnings, comparable sales and e-commerce growth in its largest market during the third quarter.
Walmart shares fell 0.3 per cent after hitting a record high earlier in the session, but the S&P 500 retail and consumer discretionary indexes were higher after company's report.
The Dow Jones Industrial Average fell 36.93 points, or 0.13 per cent, to 27,746.66, the S&P 500 lost 1.41 points, or 0.05 per cent, to 3,092.63 and the Nasdaq Composite dropped 12.35 points, or 0.15 per cent, to 8,469.76.
Stocks have recently run to all-time highs, with the Dow and the S&P 500 posting record closing levels on Wednesday, helped by the Federal Reserve's interest rate cuts, thirdquarter earnings topping low expectations and signs the economy may be bottoming.
Federal Reserve chair Jerome Powell yesterday said the risk of the US economy facing a dramatic bust is remote, and investors will next be looking to US retail sales data today.
Real estate was the top-performing S&P 500 sector, rising 0.5 per cent, while energy and consumer staples lagged along with tech.
Dillard's shares jumped 14.2 per cent after the department store chain's quarterly results.
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