Technology stocks led North American markets lower Wednesday morning after U.S. giant Cisco Systems Inc. failed to meet analysts’ expectations in its quarterly earnings report.

At midday, Toronto’s S&P/TSX index was off 10.61 points or 0.11% at 9,382.07. The TSX Venture Exchange edged 2.19 points or 0.12% higher to 1,814.86. In New York, the Dow industrials were down 38.88 points or 0.36% at 10685.75. The Nasdaq had lost 19.59 points or 0.94% at 2067.09. The S&P 500 index slid 6.37 points or 0.53% to 1195.93.

The Canadian dollar was down 0.19 of a cent at US79.96¢.

After markets closed Tuesday, Cisco reported strong quarterly profits of US$1.48 billion, but the telecom equipment company’s revenue failed to meet expectations. Cisco forecast that sales for the fiscal third quarter would be flat to 2% higher than the second quarter.

Cisco shares were down 37¢ or 2.03% at US$17.87.

That was enough to pull down tech shares on the TSX and offset gains by the heavyweight gold group. The TSX tech group was down about 1% with Nortel Networks Corp. a big loser, slipping 10¢ or 2.49% to $3.95 in heavy volume.

Gold shares were up 1.24% as a whole.

The energy sub-group added 0.18% as crude oil futures surged US$1 Wednesday morning on the NYMEX after weekly government inventory data showed a surprise drop of 1.0 million barrels in domestic commercial crude stocks against forecasts for a modest build. U.S. light crude was up 80¢ at US$46.20 a barrel. Rising oil prices raises concerns that higher energy costs will pinch corporate profits and curb consumer spending.

There were also reports Wednesday that TD Securities Inc. is a potential bidder for restructuring steelmaker Stelco. Sources told the Hamilton Spectator that the wholesale banking division of TD Bank Financial Group is one of six companies that have signed a confidentiality agreement and is conducting due diligence on Stelco. TD stock slipped 24¢ or 0.48% to $49.46.

On Wall Street, Hewlett-Packard Co. helped offset Cisco’s performance somewhat. Hewlett-Packard shares rose $1.23 or 6.1% to US$21.37 after the computer and printer maker ousted Carly Fiorina, its chairman and chief executive. Hewlett-Packard said Fiorina was stepping down after disagreements with the company’s board over strategy and added that a search for a new CEO was underway.

In other earnings, American International Group Inc. climbed 2.2% to $69.25 after the world’s largest insurer by market value reported better-than-expected earnings.

Overseas, Tokyo’s benchmark Nikkei Stock Average of 225 selected issues lost 17.08 points, or 0.15% to close at 11473.35 points.

Markets in Hong Kong, Malaysia and Taiwan were closed for the Lunar New Year holiday and were scheduled to reopen next Monday, Feb. 14. Singapore, Indonesia and South Korea were also closed for the holiday and were to resume trading Friday.

London’s FTSE 100 index lost 4.3 points at 4,991.2.

Frankfurt’s DAX 30 was down 18.38 points at 4,353.01 while the Paris CAC 40 lost 11.89 points at 3,968.88.