Squawk on the Street The Cisco Skid, McDonald's "Value" Beat, Trump Tariff Setback in the House 2/12/26
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Feb 12, 2026 Traders dissect sector rotation and how AI fears are reshaping markets. A deep look at Cisco’s guidance shock tied to rising memory costs. Discussion of McDonald’s push on value meals and traffic gains. Coverage of the House vote on tariffs and its market ripple effects. Talk of software sell-offs, a major Schroders-Nuveen deal, and FedEx’s outlook ahead of investor day.
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Rotation Masks Flat Index Performance
- The market is rotating violently from tech into small sectors like energy, materials, and staples.
- This dispersion has kept indices flat while individual stocks swing dramatically.
AI Fears Spread To Real Estate
- AI fears are expanding beyond software into commercial real estate and services.
- Investors respond quickly to narratives, sometimes causing knee-jerk sell-offs on comments about office obsolescence.
Cisco: AI Demand vs Memory Cost Pain
- Cisco beat earnings but warned margins will shrink due to rising memory chip costs.
- Strong AI demand exists but memory price headwinds complicate valuation and margin outlooks.