Midday movers: Cisco, Lockheed, Baidu

Stocks slide as US companies continue to indicate caution with their guidance and Moody's signals worries about more debt fallout in Europe.

By MSN Money Partner Jul 24, 2012 1:07PM
Information provided by Theflyonthewall.com

Dow components Du Pont (DD) and AT&T (T) both slid after reporting earnings that beat expectations but revenues that were below consensus. However, the biggest drag on the Dow was Cisco (CSCO), down 5.5%, after RBC Capital said it believes that VMware's (VMW) purchase of Nicira may impact Cisco's long-term data center growth prospects. Also, Cisco announced yesterday afternoon that it plans to cut about 2% of its workforce.

UPS (UPS) reported results that missed consensus on the top and bottom line and cut its full-year earnings view, citing lowered economic growth expectations. Specifically, UPS said it thinks U.S. GDP forecasts are too high and that the company sees U.S. GDP growth coming in closer to 1% in the second half of this year. 

Among others reporting, Under Armour (UA), Six Flags (SIX), Western Union (WU) and Lockheed Martin (LMT) advanced, while Texas Instrument (TXN), Illinois Tool Works (ITW), Lennox (LII), Gentex (GNTX) and Rockwell Collins (COL) declined.

Among the notable gainers were Sanmina-SCI (SANM), up 15%, after the company's revenue results and guidance surprised to the upside, and Baidu (BIDU), up 10%, following its stronger than expected Q2 results and encouraging Q3 revenue guidance. Among the noteworthy losers were DeVry (DV), down over 25%, as the stock was downgraded by at least four firms after the company pre-announced weaker than expected Q4 results, and Elan (ELN), down nearly 14%, after Pfizer (PFE) announced a negative top-line result from the first of two U.S. Phase III studies of a potential Alzheimer's drug. 
2Comments
Jul 24, 2012 1:41PM
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This "propped up" market is long overdue for a major correction.  Companies are no longer growing their business by selling more product, service etc. but rather thru job elimination, job outsourcing, plant closures, wage reduction, benefit reduction, accounting loopholes and other means to give the appearance how well they are doing.  Meanwhile you have the fund managers playing monopoly with client's money in what amounts to nothing more than a giant ponzi scheme.  Why doesn't MSN or one of their "partners" write an article identifying companies in the US that are actually hiring for good paying, full-time positions with benefits?  That's because there are very few and they don't want to point out the obvious so they continue the "smoke and mirrors" game of illusion....
Jul 24, 2012 1:49PM
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Once again, another typical MSN headline about midday movers rather than "Stocks Sink On Global Economic Fears".  They always want to sugar coat the negative to give the appearance all is well when in reality it isn't.  Alcoa is down around $8/share which is their 52 week low...so what does that tell you about future manufacturing demands and production?  Of course there is no mention of this by MSN as they are all scrambling to try and report something positive.  Of course Apple will be coming out with their new phone and will save the stock market and the world...right? 
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