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Friday, November 12, 2010 – Daily News – 7A NEW YORK (AP) — Stocks tumbled Thursday after a disappointing out- look from Cisco Systems Inc. rattled a market already on edge as an economic summit of world leaders got under way in South Korea. Global leaders were sharply divided over cur- rency and trade policies heading in to the Group of 20 summit meeting in Korea, and a sense of pessimism was hanging over the start of the meet- ing of top officials from rich and emerging economies. The Dow Jones indus- trial average fell 73.94, or 0.7 percent, to close at 11,283.10, after trading down as much as 126 earlier in the day. The index fell for three out of the last four sessions. Cisco disappointed investors when it cut its sales forecast for a sec- ond quarter in a row, sending its shares down 16.2 percent to $20.52. That dragged down shares of other technolo- gy stocks and other Dow components. Hewlett- Packard Co. fell 2.4 per- cent, while IBM Corp. fell 0.8 percent. ‘‘Cisco is clearly a tech benchmark,’’ said Philip Dow, director of equity strategy at RBC Wealth Management. ‘‘With a second disap- pointment in a row, peo- Stocks sink as Cisco’s outlook disappoints Wall Street ple are questioning if their business model is broken.’’ The computer network equipment maker said its revenue will rise by less than half of what analysts had predicted for its November-through-Janu- ary quarter. There are worries that smaller com- petitors are cutting into Cisco’s market share. Technology shares have been among the best performing in recent months with more com- panies investing in new technology coming out of the recession. Cisco’s cautious forecast puts a damper on expectations for broader growth in the sector in the coming quarters. The Standard & Poor’s 500 index fell 5.17, or 0.4 percent, to 1,213.54. The Nasdaq composite dropped 23.26, or 0.9 percent, to 2,555.52. Volume was a bit lighter than in recent days because of the Vet- erans’ Day holiday. Bond trading is closed for the holiday. Investors were cau- tious as global leaders began an economic sum- mit in South Korea, where the U.S. has received a cool reaction from other nations over its economic stimulus Dr. Andrew PomazalD.O. Physician & Surgeon General Medicine Saturday Appointments Available • High Blood Pressure • Diabetes • Joint & Muscle Pain • Lung Problems We offer Osteopathic Manipulation 530 528-2066 2050 Main St, Red Bluff Accepting New Patients plan. China and Germany were critical of the U.S. last week after the Feder- al Reserve announced a bond-buying program that effectively cut the value of the dollar. In turn, the U.S. has criti- cized China for holding its currency artificially low. A weak currency helps a country’s exports because they become cheaper to sell overseas. That can lead to big trade imbalances and protec- tionist reactions from government’s trying to keep their own countries’ goods from being priced out of the world market. The dollar gained ground against the euro Thursday, and was little changed against Japan’s yen. The Japanese gov- ernment has flooded cur- rency markets multiple times in recent months with yen to cut the value of the currency as it hov- ers near a 15-year low against the dollar. The euro has struggled in recent days because of fresh concerns about government debt prob- lems, particularly in Ire- land. A steadily declining dollar over the past two months has helped funnel money into stocks and commodities as investors seek better returns. Gold climbed back up over $1,400, rising $4 to settle at $1,403.30. Falling shares out- numbered gaining ones two to one on the New York Stock Exchange, where consolidated vol- ume came to 4 billion shares. 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