US futures drift slightly higher on rebound with data ahead

Cisco (CSCO) shares are one of the top trending tickers on Yahoo Finance right now, getting smoked about 4% in premarket trading.

The move down makes all sorts of sense.

The company said everything an investor doesn’t want to hear from a tech giant on its earnings day: inventory corrections, lower demand, an uncertain outlook, worse-than-expected guidance. I can go on, but why?

Wall Street is letting Cisco execs have it this morning in the wake of another guide down. The most vocal of the group: Jefferies analyst George Notter.

“We’re not really buying their comments about a softer macro environment also impacting the business. Also, we have ongoing concerns re: market share,” Notter said in a client note. The headline on that note: Second Trip Through the Inventory Correction Confessional.

Ouch.

The savings grace for Cisco bulls: Execs said on last night’s earnings call the company’s $28 billion deal for Splunk will likely close early, by the end of the second quarter. Once the business is in Cisco’s house, the company’s CFO will probably recast guidance higher to factor in the earnings power of Splunk.