Tuesday, June 7, 2011

Wall Street Drops After Bernanke Comments, Cisco (NASDAQ: CSCO) Slumps

US stocks finished lower on Tuesday after bearish comments from Federal Reserve Chairman Ben Bernanke spooked investors.

The Dow Jones Industrial Average fell 19.15 points, or 0.16%, to finish at 12,402.76. The S&P 500 slipped 1.23 points, or 0.10%, to close at 1,284.94. The Nasdaq Composite retreated 1 point, or 0.04%, to 2,701.56.

In a speech on Tuesday, Federal Reserve chairman Ben Bernanke acknowledged that economic growth this year has been slower than expected. But he said growth should pick up in the second half of the year if gas prices "moderate" and the supply disruptions stemming from the disaster in Japan fade. Bernanke twice called the job market "far from normal" and conceded, "the economy is still producing at levels well below its potential."

Shares of Intel Corp. (NASDAQ: INTC) climbed 23 cents, or 1.06%, to $22.06 after Citigroup said in a research note that the  world’s largest chipmaker may be forming a “foundry relationship” with Apple Inc. (NASDAQ: AAPL). 

Shares of Cisco Systems, Inc. (NASDAQ: CSCO) dropped 48 cents, or 3%, to close at $15.51.

European stocks closed up. The UK FTSE rose 1.49 points, or 0.03% to 5,864.65. The German DAX and French CAC increased 0.14% and 0.22% respectively.

Asian stocks finished mixed. The Nikkei 225 rose 62.60 points, or 0.67%, to 9,442.95. The Hang Seng index of Hong Kong droped 80.89 points, or 0.35%, to 22,868.67.

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