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Blue bellwether blows Nasdaq out of bed

Cisco's profit warning and swingeing job cuts hit confidence on the Nasdaq, but a traumatised market only mustered a one per cent fall.
Written by Ben King, Contributor

Cisco's profit warning and swingeing job cuts hit confidence on the Nasdaq, but a traumatised market only mustered a one per cent fall.

The company is getting rid of 8,500 staff, and predicted a 30 per cent fall in profits for the next fiscal quarter. Nasdaq opened at 1869, well down on yesterday's 1910 closing figure - but after the initial shock of the Cisco news the market rebounded 25 points. Investors weren't so kind to the router and internet switch maker, but the shares didn't do as badly as they might have done. Cisco shares were changing hands at around $15.90 in the first hour of trading, down around 7.5 per cent. Cisco shares fell nine per cent in March when the company announced the loss of 5,000 jobs.
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