Stocks Extend Losses as Technology Spending Withers

Technology bellwether Cisco Systems offered a bleak outlook as investors mulled over the latest batch of economic data.  The Dow lost 50 points to 9089 while Nasdaq dropped 18 points to 1662.

On the upside

Wal-Mart (NYSE: WMT) reported a gain of 2.4% in same-store sales reflect a consumer shift to discounted goods.

Department store operator Macy's (NYSE: M) posted lower October same-store sales and projected another decline for November.   However, investors were relieved that sales met lowered expectations.

Shares of ANSYS (Nasdaq: ANSS) rose after the engineering software service provider reported higher revenues and earnings.

On the downside

McDermott International (NYSE: MDR) posted lower 3rd quarter profits due to higher costs for offshore pipeline projects.  Analysts promptly downgraded the stock.

Wells Fargo (NYSE: WFC) announced plans to raise $10 billion to finance its acquisition of Wachovia (NYSE: WB).

Shares of Cicsco Systems (Nasdaq: CSCO) opened lower after the world's largest maker of computer-networking gear reported flat earnings and higher quarterly revenues that ended with a steep drop in October sales.

In the broad market, declining issues outpaced advancers by a margin of nearly 2 to 1 on the NYSE and by more than 5 to 4 on Nasdaq.  The Russell 2000 which tracks small cap stocks slipped a point to 512.