Cisco forecast, GM restatement setting bearish Thursday tone

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Dis-connectivity

Cisco forecast, GM restatement setting bearish Thursday tone for investors.
November 10, 2005: 6:11 AM EST

NEW YORK (CNN/Money) - The past and the future could haunt investors when markets open Thursday as Cisco issued weaker than hoped for guidance and General Motors announced it was restating results.

U.S. stock futures were down, indicating a lower opening for stocks.

Cisco (Research), the No. 1 maker of Internet equipment, reported strong results for the just completed quarter but issued guidance for the current period that fell short of forecasts. Shares of Cisco also lost nearly 3 percent in early European trading.


No. 1 automaker GM (Research) announced it had to restate results for 2001 and the second quarter of this year. Shares of the Dow component, which had fallen to a 13-year low Wednesday ahead of the announcement, were off nearly 3 percent in heavy European trading early Thursday.

A forecast from the International Energy Agency that lowered consumption outlook had oil prices continuing the sell-off that took prices below $59 in Wednesday trading.

The December light crude futures contract for NYMEX lost 42 cents to $58.51 a barrel in electronic trading, while the December contract for Brent crude fell 45 cents to $56.43.

Major markets in Asia closed higher Thursday and major European markets also gained in early trading.

Treasury prices were slightly higher, lowering the yield on the 10-year note yield to 4.63 percent from 4.64 percent late Wednesday. The dollar lost ground against the euro and the yen.