Stocks Lower as Tech Selloff Deepens Ahead of CPI | The Close 2/12/2026
Watch on YouTube ↗  |  February 13, 2026 at 00:14 UTC  |  1:32:42  |  Bloomberg Markets
Speakers
Katie Greifeld — Anchor, Bloomberg TV
Bailey Lipschultz — Anchor, Bloomberg TV
Chris Wright — US Energy Secretary
Dana D'Auria — Co-Chief Investment Officer, Envestnet
Michael Halen — Senior Restaurant Analyst, Bloomberg Intelligence
Thomas Michaud — CEO, KBW
Woo Jin Ho — Senior Analyst (Hardware/Networking), Bloomberg Intelligence
Veronica Willis — Global Investment Strategist, Wells Fargo Investment Institute
Mark Palmer — Senior Equity Research Analyst, The Benchmark Company
Jordan Bender — Director of Gaming, Citizens
John Toomey — CEO, Harbor Partners
Marc Giannini — Chief US Economist, Barclays

Summary

  • Market Sentiment: Risk-off sentiment dominates ahead of CPI data, with a deepening tech selloff (specifically software and hardware) driven by profitability concerns and high component costs.
  • Energy Shift: The US has re-engaged with Venezuela (post-Maduro extraction), explicitly enabling Chevron to massively expand production, which is creating a bullish setup for US oil majors operating there.
  • Hardware Warning: A "domino effect" is predicted for hardware manufacturers (Dell, HP, NetApp) following Cisco's margin miss, driven by surging DRAM memory prices.
  • Sector Rotation: Strategists are advising a rotation out of "stretched" tech trades into Financials, Industrials, and Utilities, citing better valuations and AI-adoption tailwinds for incumbents.
  • M&A Revival: The banking sector is poised for a consolidation wave following the lifting of a regulatory moratorium on mergers above $200 billion.
Trade Ideas
Ticker Direction Speaker Thesis Time
CVX /COP /EOG
LONG Chris Wright
US Energy Secretary
US Energy Secretary Wright states Chevron is being enabled to "massively grow their business" in Venezuela with production rising over the next 18-24 months. Anchors note a breakout in "AMP stocks" like ConocoPhillips and EOG. The geopolitical shift and removal of sanctions/regime change in Venezuela directly benefits US oil majors with legacy assets there. Chevron is the primary beneficiary, but the "spigots opening" lifts the peer group. LONG US oil majors with Venezuela exposure or E&P breakout potential. Political instability in Venezuela; oil price volatility. 2:08
AVOID Woo Jin Ho
Analyst, Bloomberg Intelligence (Hardware)
Cisco shares tumbled due to margin pressure from high DRAM (memory) pricing. The analyst notes, "The margin pressure from the DRAM pricing was a lot greater than I had anticipated." This is not an isolated incident but the "first shoe to drop." Dell is "highly exposed to DRAM exposure," and HP/NetApp face similar input cost headwinds. They are likely to cut estimates below consensus in upcoming earnings. AVOID hardware manufacturers exposed to memory component inflation until earnings reset. Companies manage to pass on costs faster than expected. 0:27
MCD
LONG Michael Halen
Senior Restaurant Analyst, Bloomberg Intelligence
McDonald's is "killing it" on marketing and has re-established itself as the value player in the US, avoiding the headwinds hitting peers like QSR (Burger King/Tim Hortons). In a consumer environment focused on value, MCD's scale allows it to win market share through aggressive pricing ($5 meal deals) and marketing execution (Grinch meal), while competitors struggle with deceleration. LONG MCD as the winner in the fast-food value wars. Broader consumer spending slowdown impacting all dining out. 23:06
LONG Thomas Michaud
CEO, KBW
KBW CEO Michaud notes that fundamentals (loan growth, credit quality) are green lights and the "moratorium on bank mergers" for banks over $200B is effectively over. Wells Fargo's Willis advises rotating into Financials as a way to play AI trends through incumbents. The combination of strong fundamentals, a regulatory environment conducive to M&A (creating takeover premiums), and a rotation out of expensive tech makes financials attractive. LONG Regional Banks and Financials for M&A upside and valuation rotation. Commercial real estate credit deterioration; interest rate volatility. 25:08
LONG Mark Palmer
Senior Equity Research Analyst, The Benchmark Company
Despite a revenue miss, the institutional platform grew 37% and subscription/services revenue now accounts for nearly 43% of the total. The company is successfully diversifying away from volatile retail trading fees into stable recurring revenue (custody, staking, stablecoin interest). The "Genius Act" and US support for stablecoins provide a regulatory tailwind. LONG COIN as it transitions from a pure crypto-exchange proxy to a broader financial infrastructure play. Crypto market crash; regulatory reversals. 25:33
WATCH Jordan Bender
Director of Gaming, Citizens
DraftKings stock plunged on 2026 guidance; handle decelerated 4% in January. The company was "caught flat footed" by prediction markets and must now spend heavily to catch up. While they are expected to be long-term winners (duopoly with FanDuel), the short-term involves heavy investment and decelerating growth metrics. WATCH/AVOID in the short term until the spending impact is clarified at the March investor day. Prediction markets permanently erode market share. 64:17
LONG Veronica Willis
Global Investment Strategist, Wells Fargo Investment Institute
Wells Fargo advocates using volatility to buy into sectors outside of big tech, specifically naming Industrials, Utilities, and Precious Metals (Gold/Silver). The tech trade is "stretched." Diversification into real assets (metals) and defensive/cyclical equity sectors offers protection against volatility and inflation stickiness. LONG Defensives and Real Assets. Tech rally resumes, leaving diversified portfolios underperforming. 1:48