Stocks are turning in a lackluster performance in early trading on Thursday, as traders weigh upbeat earnings news from Cisco (CSCO) against a batch of disappointing economic data. The major averages have turned mixed on the day, showing only modest moves.
After the close of trading on Wednesday, Cisco reported better than expected third quarter results, with further buying interest generated by Chairman and CEO John Chambers' remarks indicating that the company is starting to see some encouraging signs in the U.S. and other parts of the world.
Shares of Cisco have surged up by 13.4 percent on the news, contributing to considerable strength in the networking sector. The NYSE Arca Networking Index has surged up by 3.2 percent to its best intraday level in almost three months.
However, the positive sentiment was partly offset by a batch of disappointing U.S. economic data, including a report from the Labor Department showing a bigger than expected increase in initial jobless claims in the week ended May 11th.
Disappointing quarterly results from Wal-Mart (WMT) are also weighing on the markets, with the retail giant down by 1.6 percent in early trading.
Biotechnology stocks have come under considerable selling pressure, dragging the NYSE Arca Biotechnology Index down by 1.8 percent. The index is pulling back further off the record closing high that it set on Tuesday.
Steel and gold stocks have also shown notable moves to the downside on the day, while most of the major sectors are showing only modest moves.
The major averages currently remain mixed, with the tech-heavy Nasdaq clinging to a modest gain. While the Nasdaq is up 4.75 points or 0.1 percent at 3,476.37, the Dow is down 16.09 points or 0.1 percent at 15,259.60 and the S&P 500 is down 1.15 points or 0.1 percent at 1,657.63.
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Market Analysis
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.