The earnings news offset what was an upbeat series of economic reports, with the jobless claims dropping over the past month to 320,000 — 15,000 below last week — and the Consumer Product Index rising 0.2%, which was right in line with economists’ estimates.
The Nasdaq closed lower by 1.72% at 3506.12, while the Dow Jones Industrial Average lost 1.47% to end the day at 15112.19. The S&P 500 fell 1.43% to 1661.32.
Cisco reported fairly robust earnings and revenues for the quarter, with the bottom line up 11% (beating estimates) year-over-year on a 6% increase on the top line (meeting estimates). However, the company cited a difficult market ahead, telegraphing slower revenue growth of 3%-5%, below analysts’ 7% targets, and announced it will lay off 4,000 employees. Shares tanked more than 7%, weighing on both the Nasdaq and Dow.
Walmart fared no better, as second-quarter earnings came in flat at $1.24 per share, just under analyst estimates of $1.25, while revenues came in at $117 billion, under estimates of $118 billion. Worse yet, sales in stores open more than 1 year declined 0.3%, and the company guided analyst expectations lower for the full year. WMT shares finished 2.5% lower, and sent other discount retailers such as PriceSmart (PSMT, -2.5%), Costco (COST, -1.8%) and Target (TGT, -1.4%) with it.
Kohl’s (KSS) avoided the fall, with both rising over 5% on the day. KSS managed to improve both its top and bottom lines for the quarter.
- Iamgold (IAG): Up 10.8% (63 cents) to $6.46.
- Dillard’s (DDS): Up 7% ($5.53) to $84.49.
- D.R. Horton (DHI): Up 5.7% ($1.03) to $19.12.
- MannKind (MNKD): Down 12.5% (95 cents) to $6.64. (Read more here)
- Himax Technologies (HIMX): Down 8.7% (58 cents) to $6.12.
- Smith & Wesson (SWHC): Down 7.9% (96 cents) to $11.22.
Marc Bastow is an Assistant Editor at InvestorPlace.com. As of this writing, he did not hold a position in any of the aforementioned stocks.