* Cisco shares tumble after results, outlook
* Mubarak lifts stocks late, to delegate powers to VP
* US jobless claims fall more than expected in latest week
* Dow down 0.1 pct, S&P and Nasdaq both up 0.1 pct
* For up-to-the-minute market news see []
(Adds analyst comment on Mubarak speech)
By Ryan Vlastelica
NEW YORK, Feb 10 (Reuters) - The S&P and Nasdaq eked out
gains in the final minutes of trading on Thursday as Egyptian
President Hosni Mubarak said he would delegate powers to the
vice president, though he stopped short of resigning.
The Dow ended slightly lower, breaking an eight-day rally
after network equipment maker Cisco Systems Inc <CSCO.O> gave a
weak outlook.
The S&P and Nasdaq wavered in volatile late-day action as
Mubarak began a speech in response to the weeks of civilian
protests. Earlier in the day, as media reports spread that
Mubarak might resign, equities rebounded off early lows sparked
by the disappointment over Cisco. []
"The moment Mubarak said he would be giving up duties to
his vice president, the market said it was a good thing and
rose," said Michael Holland, who oversees more than $4 billion
as chairman of Holland & Co in New York.
"There was an initial reaction that things would be better,
but that doesn't seem to be the case," Holland added. Mubarak's
speech enraged protesters, who reacted with chants of "Down,
down Hosni Mubarak."
More than two weeks of civilian unrest in Egypt have
created some uneasiness among global investors on fears that
political instability could spread through the region and
impact commodities. []
The Van Eck Market Vectors exchange-traded fund <EGPT.P>
ended up 0.45 percent, cutting gains late when it appeared that
Mubarak was not stepping down. Previously, the fund had risen
as much as 5.8 percent.
Volume on Wall Street was stronger than in recent days,
which had seen some of the thinnest trade of the year. But with
a total of about 8.15 billion shares traded on the New York
Stock Exchange, the American Stock Exchange and Nasdaq, volume
was still below last year's daily average of 8.47 billion.
"Egypt stopped us from dropping lower, but the low volume
means that people are skeptical of the climb we've had," said
Michael Nasto, senior trader at U.S. Global Investors Inc in
San Antonio, Texas. The Dow and S&P are both up more than 5
percent since the start of 2011.
Cisco shares tumbled 14 percent to $18.92 on heavy volume a
day after the outlook, but chief competitors surged as
investors see Cisco losing market share. Juniper Networks
<JNPR.N> rose 7.6 percent to $43.40 and the Networking Index
<.NWX> surged 3.5 percent. []
The Dow Jones industrial average <> was down 10.60
points, or 0.09 percent, at 12,229.29. The Standard & Poor's
500 Index <.SPX> was up 0.99 points, or 0.07 percent, at
1,321.87. The Nasdaq Composite Index <> was up 1.38
points, or 0.05 percent, at 2,790.45.
Also weighing on the Dow was Wal-Mart Stores Inc <WMT.N>,
which fell 2 percent to $55.59 after UBS downgraded the stock
to "neutral" from "buy." UBS said a sales recovery at the
retail giant could take longer than expected. []
New U.S. claims for unemployment benefits dropped to their
lowest level in 2-1/2 years, the government said on Thursday,
in a sign the labor market was improving. []
Kraft Foods Inc <KFT.N> fell in extended trading after it
reported fourth-quarter results. The stock, a Dow component,
was off 1.3 percent to $30.72. []
Disappointing earnings overseas hurt sentiment as Credit
Suisse <CSGN.VX><CS.N> missed profit expectations. The bank's
U.S.-traded shares dropped 7.2 percent to $43.27 while peer
Deutsche Bank <DB.N> fell 2.6 percent to $62.61 on the New York
Stock Exchange.
Soft drink and snacks maker PepsiCo Inc <PEP.N> cut its
full-year earnings growth target, sending shares down 1.6
percent to $63.36.
The number of advancing stocks slightly outnumbered the
number of declining issues on both the New York Stock Exchange
and Nasdaq.
(Editing by Leslie Adler)
