* Senate for banking committee hearing on Yellen underway
* Cisco shares tumble after revenue warning
* Walmart falls, Kohl's shares slide after results
* Dow, S&P 500 up 0.1 pct, Nasdaq off 0.2 pct
By Rodrigo Campos
NEW YORK, Nov 14 U.S. stocks were up modestly
Thursday, holding gains from late in the previous session which
came ahead of the release of remarks from Federal Reserve chair
nominee Janet Yellen, while a slide in Cisco shares weighed on
the technology sector.
Cisco Systems shares were on track to post their
worst day since Feb. 10, 2011, slumping 12 percent to $21.11
after it warned its revenue would dive as much as 10 percent
this quarter and keep contracting until after the middle of
The S&P tech sector dropped 0.9 percent and the
tech-heavy Nasdaq Composite underperformed other major indexes.
Wal-Mart shares fell 0.6 percent to $78.40 after the
world's largest retailer reported lower-than-expected quarterly
sales, and Kohl's slid 8.5 percent to $56.30 after the
department store chain reported weaker-than-expected results.
Following Wednesday's close at record highs on the S&P and
Dow, market sentiment was hurt by "the reality of Cisco and
Walmart," said Rick Meckler, president of investment firm
LibertyView Capital Management in Jersey City, New Jersey.
The Senate Banking Committee is holding a hearing on the
nomination of the Fed's current vice chair, Janet Yellen, to
head the U.S. central bank.
Yellen's remarks, released Wednesday, were perceived by the
market as dovish and supportive of the policies that have helped
the S&P 500 rally 24.9 percent so far this year.
"I don't expect in the Q&A (Thursday morning) to hear
anything particularly surprising," said Meckler.
"This market for a while has been about a lack of
alternatives for investors, that's what super low interest rates
represent. We've gone a long way but it's hard to keep it
The Dow Jones industrial average rose 9.54 points or
0.06 percent, to 15,831.17, the S&P 500 gained 1.68
points or 0.09 percent, to 1,783.68 and the Nasdaq Composite
dropped 8.046 points or 0.2 percent, to 3,957.529.
Futures barely reacted to data showing the number of
Americans filing new claims for unemployment benefits fell 2,000
to a seasonally adjusted 339,000. Claims for the prior week were
revised to show 5,000 more applications than previously
Overseas, data showed the euro zone economy grew at a slower
than expected 0.1 percent rate in the third quarter, which could
hurt appetite for equities.
Fairholme Capital Management proposed to buy the insurance
businesses of Fannie Mae and Freddie Mac, a
move that seeks to resolve the uncertain future of the mortgage