Evening PS II
Futures are down 3 handles to FV, but it is still early. I would expect a them to uptick starting at 0400 EST. BofA/ML out with a negative CAPEX call into earnings. Hard to be long anything levered to US CAPEX. I would be seller if I owned anything networking stocks levered to US CAPEX. I think growth companies like APKT, FFIV and BSFT are okay for now. Would be a seller of CSCO, ERIC, TLAB and ARRS. All for different reasons. CSCO is in a management turmoil. Wikis and councils get an F-. It will take time to sort. TLAB has a negative product cycle and too much leverage to T to be a long. Not enough spending by cable companies to drive ARRS higher.