Carl Quintanilla, David Faber and Michael Santoli discussed the markets and sectors that are thriving in wake of the recent pullback in tech. Add commercial real estate stocks to the list of equities hit by AI fears. Shares of Cisco down sharply as guidance on soaring memory chip costs overshadowed a Q2 earnings beat. McDonalds posted better-than-expected quarterly results, citing its emphasis on value meals and affordability. The anchors reacted to the House&#x27;s passage of a resolution to overturn President Trump&#x27;s tariffs on Canada. Also in focus: What the CEO of FedEx told CNBC ahead of the company&#x27;s investor day, AppLovin&#x27;s earnings and the slump in software stocks, a $13.5 billion deal to create a transatlantic asset-management giant.<br><br>Squawk on the Street Disclaimer<br><br>Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

The Cisco Skid, McDonald's "Value" Beat, Trump Tariff Setback in the House 2/12/26

Squawk on the Street

# Full Transcript

**Podcast:** Squawk on the Street

## Participants

- **Carl Quintanilla** (CNBC)
- **David Faber** (CNBC)
- **Mike Santoli** (CNBC)
- **Kate Rogers** (CNBC)
- **Robert Frank** (CNBC)
- **Raj Subramanian** (FedEx)

## Transcript

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Market insight and analysis. You're listening to the opening bell of CNBC's Squawk on the Street. Good Thursday morning. Welcome to Squawk on the Street. I'm Carl Quintanillo with David Faber. Mike Santoli at Post 9 of the New York Stock Exchange. Kramer has the morning off. S&P once again going to flirt with levels just south of 7K. Yields are lower across the curve. Got some good earnings to chew on this morning from Cisco to AppLovin to McDonald's. Jobless claims still a little elevated. Mid-227 is the highest since early December.

Our roadmap begins with the state of stocks. A number of sectors continue to hit new highs, while software and now commercial real estate takes a hit on these AI fears. Plus Dow components, Cisco and McDonald's moving in different directions on the back of their latest earnings. The House voting to override President Trump's tariffs on Canada and reports the U.S. and China may extend their trade truce. This is when President Trump and Xi meet in person.

Let's begin with the markets poised for a higher open after yesterday's slight pullback. Mike, we continue to see the AI fears kind of migrate around different sectors over the past few days. Yeah, and the challenge for the market almost every day is what's going to take up the slack. The market is just absolutely kind of hunting for perceived vulnerabilities. Any kind of middleman business that has some kind of an information lock between customer and product or service, it feels as if they're losing the benefit of the doubt.

What's fascinating, I mean, this is basically the most interesting flat index performance I've probably ever seen. Meaning the dramatic moves inside the index and what it's taken to keep the S&P right in place have been fascinating. So you had a one-month move average on the S&P ...

The Cisco Skid, McDonald's "Value" Beat, Trump Tariff Setback in the House 2/12/26

Transcript

Built for investment professionals

Every day you wait, your competitors are finding
edge in conversations you're not hearing.

The Cisco Skid, McDonald's "Value" Beat, Trump Tariff Setback in the House 2/12/26

Transcript

Built for investment professionals

Every day you wait, your competitors are findingedge in conversations you're not hearing.

Every day you wait, your competitors are finding
edge in conversations you're not hearing.