Cisco Slides on Earnings as July PPI Comes in Cool
Cisco shares dropped following its latest earnings report while July producer price index data came in mostly below expectations.
Cisco shares declined Thursday after the networking giant released its latest earnings results, disappointing investors and adding pressure to an already closely watched trading session. The move dragged attention to how major tech names are holding up as the broader market digests a mixed batch of corporate reports.
On the economic data front, the July producer price index printed mostly cooler than expected, offering a measure of relief to traders anxious about persistent inflation. The PPI reading is seen as an early signal of where consumer prices may be headed, making it a closely tracked gauge for Federal Reserve policy watchers.
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The combination of a high-profile earnings miss from Cisco and softer wholesale inflation data set up a complicated backdrop for equities Thursday, with bulls and bears each finding something to argue about. Cooler producer prices can ease fears of further Fed rate hikes, but weak corporate results raise questions about the health of business spending and demand.
Cisco's report and the PPI data together underscore the tug-of-war dynamic that has defined markets in recent months — macro relief on one side, earnings uncertainty on the other. Investors will be watching closely to see whether the inflation cooldown narrative can outweigh individual stock-level disappointments as the session develops.
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