* Cisco shares slide 15 pct after dismal outlook
* Indexes off: S&P 0.8 pct, Dow 0.8 pct, Nasdaq 1.3 pct
* For up-to-the-minute market news see [STXNEWS/US] (Updates to midmorning)
By Edward Krudy
NEW YORK, Nov 11 (Reuters) - U.S. stocks slid on Thursday after a gloomy outlook from Cisco Systems Inc underscored the risks that a still-weak economy posed to corporate profits and sparked a technology-led selloff in an overbought market.
Cisco's
"More than anything else, it was the guidance," said Peter Kenny, managing director at Knight Equity Markets in Jersey City, New Jersey. "Very often, Chambers comes out with very forward-looking and oftentimes prophetic guidance for the group."
The Dow Jones industrial average <.DJI> dropped 93.05 points, or 0.82 percent, to 11,263.99. The Standard & Poor's 500 Index <.SPX> lost 9.43 points, or 0.77 percent, to 1,209.28. The Nasdaq Composite Index <.IXIC> fell 34.39 points, or 1.33 percent, to 2,544.39.
Technology shares were lower after the outlook from Cisco,
the world's top manufacturer of network routers and switches.
Chipmaker Altera Corp
Cisco has lost $21 billion in market value so far this session, according to Howard Silverblatt, an analyst at Standard & Poor's. Silverblatt said the drop is set to be the biggest dollar loss ever for the stock.
If Cisco ends the day with this percentage loss, it would be the worst one-day percentage fall since July 14, 1994, when Cisco fell 17.71 percent, according to Thomson Reuters Datastream.
"This is the second quarter in a row where its outlook disappointed," said Mark Bronzo, a money manager at Security Global Investors in Irvington, New York, which manages $22 billion. "The market doesn't have a lot of patience for names like this."
"It will be interesting to see if the market perceives this as a Cisco-only event, or something for tech in general," he added.
Volume in Cisco's shares jumped massively in early trading. In the first half hour, nearly 200 million shares changed hands, almost four times the 50-day moving average for a whole day's volume, which stands at around 50 million.
The gap down took Cisco shares well below its 200-day moving average as the stock fell to its lowest level in over two months on an intraday basis. The decline erased much of the stock's run-up as part of wider market rally that started in September.
The market has stalled this week after the rally that has pushed up the S&P 500 more than 16 percent in the last two months. Equities have been volatile in the absence of catalysts to drive prices, often taking their cue from the currency market.
The market was extended going into Thursday's session, with the S&P 500's relative strength index pointing to a heavily overbought condition. Cisco was the catalyst needed to prompt investors to book recent gains. (Reporting by Edward Krudy; additional reporting by Caroline Valetkevitch and Ryan Vlastelica; editing by Jeffrey Benkoe)