Cisco gains lift techs, but Facebook slips
SAN FRANCISCO (MarketWatch) -- Led by advances from
Cisco (CSCO) shares rose 9.6%, to close at $19.02, as the stock put in its best single-day percentage gain since August 2011. The impetus for Cisco's gains was the company reporting a 56% increase in its fiscal fourth-quarter earnings, and saying it would raise its quarterly dividend payment by 75%, to 14 cents a share.
Cisco's results also helped the company's stock make up all the ground it lost since its disappointing quarterly report in May.
The results gave investors reason to get behind Cisco, but the company still gave a cautious outlook, saying that U.S. corporate customers remain guarded about their spending plans.
"Cisco said what everyone else has said. [That] the budgets as guided imply an up second-half, but they have limited visibility," said Alex Henderson, of Needham & Co., in a research note.
With Cisco in the lead, other big-name tech stocks also advanced. Gains came from IBM Corp. (IBM) , up 1.2%, to close at $200.84,
Video game publisher
Facebook shares fell 6.3% to close at $19.87, the first time the social-networker's stock closed below $20 since its initial public offering, in May.
Facebook took a hit as the lockup period for insiders to sell their IPO stock expired, and about 271 million shares of Facebook's stock went on the market. Facebook's shares have fallen almost 50% since the company went public at $38 a share on May 18, and more than 1.3 billion more Facebook shares are expected to gone on the market by the end of year as other lockup deadlines expire.