PowerShares QQQ, an exchange traded fund comprised of top Nasdaq-listed stocks, was down 0.6% in Thursday’s premarket following a disappointing outlook from bellwether Cisco (NasdaqGS: CSCO).
Cisco after Wednesday’s closing bell reported quarterly results and said it expects its current quarter will continue to show weakness. The stock was down more than 3% in premarket trading.
“Cisco reported decent results in the fiscal third quarter with revenue that met expectations and earnings per share that beat forecasts,” BMO Capital Markets analysts wrote in a note on the earnings. “Guidance was considerably worse than expected and, a management works to refocus and realign the business, we expect there to be further lumpiness.”
Cisco on Wednesday announced job cuts in the wake of a recent restructuring as the company tries to reduce costs and boost profit margins.