Wednesday, May 9, 2007

Cisco drags Nasdaq, S&P lower: Fed on tap

(Reuters) - U.S. stocks declined on Wednesday, with investors disappointed by tech bellwether Cisco Systems Inc.'s earnings outlook and reluctant to buy before a Federal Reserve interest-rate decision.

Cisco, the world's largest maker of equipment that directs Internet traffic, issued an outlook in line with forecasts, but analysts said investors had hoped for a positive surprise. Its shares fell 5 percent and were the top drag on the S&P 500 and Nasdaq 100 indexes.


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