Higher Revenue Reported By Cisco
On Wednesday, Cisco Systems Inc. reported their quarterly earnings which showed an increase in revenue which also beat expectations from Wall Street. Added to this, John Chambers, the network technology company’s longtime Chief Executive, is preparing to give up his post and will hand over the reins on the 26th of July to Chuck Robbins. Chambers will however stay on as the company’s executive chairman. For its 3rd fiscal period, Cisco said that net income rose 12 percent on revenue that also increased by 5.1 percent. Interestingly, in February this year, Cisco projected that their revenue would increase by between 3 to 5 percent. Yesterday, the Californian based company reported net income of 47 cents a share, or $2.44 billion. This was up compared to a year ago when the company reported profit of $2.18 billion, or 42 cents a share. Meanwhile, revenue rose from $11.55 billion to $12.14 billion. Also, according to Cisco, earnings per share which excludes stock-based compensation and other items increased from 51 cents to 54 cents a share. This beat expectations of expected earnings of 53 cents a share on revenue of $12.07 billion. In after-hours trading yesterday, the shares of Cisco declined 0.3% while the company’s shares have advanced 28 percent over the past year.
On Wednesday, after early gains, U.S. stocks ended the trading session virtually unchanged. For the 3rd consecutive day, the Dow industrials and the S&P 500 indices declined and this came in response to disappointing monthly retail sales figures. Initially, investors reacted positively to the data as it prompted them to believe that the Federal Reserve would delay the increase of interest results as a result of the sluggish growth in the economy. By the end of the session, the gains were lost and the main indices closed almost flat. The Nasdaq Composite index (COMP) ended up 0.1%, or 5.5 points, to settle at 4,981. Also, the Dow Jones Industrial Average (DJIA) declined 7.7 points to close at 18,060.49 while the S&P 500 index (SPX) closed at 2,098.48, less than a point lower. The top performer on the Dow was Intel Corporation (NASDAQ:INTC), which traded at 32.67, up 0.42 or 1.29 percent
On Wednesday, in forex trading, the U.S. dollar (USD) dropped to a 3-month low. This decline came after data showed that retail sales in the U.S. rose less than expected in April which prompted concerns regarding the strength of the economy in the country. According to the report by the Commerce Department, in April, retail sales remained unchanged compared to expectations for an increase of 0.2 percent. Meanwhile the figure for March was revised to an increase of 1.1% from 0.9%. Also, core retail sales increased by only 0.1% which missed expectations for a gain of 0.5 percent. The EUR/USD traded at 1.1331, up 1.06% while the GBP/USD traded at 1.5692, up 0.14%. Also, the greenback traded lower against the Swiss franc and the Canadian dollar with USD/CHF trading at 0.9196, down 1.04% while the USD/CAD traded at a 4-month low of 1.1969, down 0.42%. The U.S. dollar index was at 93.81, down 0.94 percent.
In Asia, in early morning trading on Thursday, crude oil prices declined. This came in response to data which showed increased stockpiles while the market showed little signs of increased demand. WTI crude for delivery in June traded at $60.15 a barrel, down 0.58%, on the NYMEX. In their weekly report, the IEA (International Energy Agency) stated that the global oil supply remained unchanged from the previous month and stood at 95.7 million barrels per day. Added to this, the output from OPEC increased by 160,000 bpd for the month. The supply level of OPEC for April exceeded 31.2 million bpd which marked its highest level since September 2012. Meanwhile, on Wednesday, Brent crude oil for delivery in June traded at $67.22 a barrel, down 0.23%, or 0.16, on the Intercontinental Exchange (ICE).