U.S. stocks were lower on Friday after Cisco’s disappointing forecast and as weaker-than-expected October retail sales data and forecast cuts by department store chains fueled fears of a slowdown in demand ahead of the key holiday shopping season.
Dow component Cisco (CSCO.O) fell 5.6 percent to $26.27 after it gave a weak forecast, citing a slowdown in order growth and weak spending outside the United States. The stock was the second-biggest drag on the S&P and the Nasdaq.
Data showed U.S. retail sales rose less than expected in October, suggesting a slowdown in consumer spending that could temper expectations of a strong pickup in fourth-quarter economic growth.
The weak data follows disappointing reports from department store chains in the past two days. Macy’s (M.N) and Nordstrom (JWN.N) in particular have both reported disappointing results and lowered their full-year forecasts.