FAITHFULLY
08-14

July CPI: no surprises, but the market still found something to chew on

Headline landed at 0.1% m/m, 3.4% y/y. Core came in at 0.2% m/m, 2.5% y/y — the slowest annual core print since February. Shelter and food each added 0.1%; energy was the drag, down on the month even as gasoline is still running +24.6% y/y.

The "in-line" read is actually the story: it's the second straight month of cooling core inflation, which is why traders leaned harder into a September hold rather than a hike. Future now price meaningfully lower hike odds than a week ago — the fourth straight downward revision.

Equities shrugged it off calmly (S&P +0.26%, Nasdaq +0.54%), but gold's +2% move to $4,471 says someone's still hedging. That's the tension: a "boring" CPI print that both confirms disinflation *and* keeps a safe-haven bid alive.

So — is gold pricing in a hold that never comes, or is it front-running something the equity market hasn't priced yet?

Cash Is the New AI Scorecard — Which Megacap Can Defend It?
QQQ fell 1.42% and the S&P 500 0.30% Thursday as investors focused on Big Tech’s AI spending and cash returns. Amazon missed estimates with $201.9B revenue and $1.89 adjusted EPS. AWS grew 39% to $48.1B, but shares fell another 7.30% after hours as trailing 12-month free cash flow dropped 35% to $42.2B. Microsoft slipped 0.16%, while Meta gained 1.96%. Which of Amazon, Microsoft, or Meta will first prove AI investment can generate cash returns?
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Comments

  • CharlesBaker
    08-14
    CharlesBaker
    Real yields still matter more here. Gold looks like insurance, not a bad hold call — equities maybe just too chill?
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