The market opened cautiously after a weekend of negative tariff headlines, but once the first buyers stepped up, there was a course correction. Meanwhile, the hottest stocks keep getting hotter.

Seeking Value vs. Making Quick Bucks

The forward price-to-earnings (FP/E) heat map reveals very few “cheap” stocks based on that metric.

And yet, the more expensive, the deeper the green hue.

Going for the Momo

Investors eschewed value and revenue and jumped into momentum.

Market Breadth

The market breadth was overwhelmingly bullish.

• Advancers outraced decliners
• New highs swamped new lows
• Up volume on the NASDAQ Composite was almost 300% higher than the down volume

Investors are not messing around with stuff that’s not moving.

Market Breadth	NYSE	NASDAQ
Advancers	1,745	2,812
Decliners	1,030	1,653
New Highs	79	142
New Lows	11	49
Up Volume	1.89 billion	6.63 billion
Down Volume	1.72 billion	2.26 billion

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It's an energy-hungry world, and the Trump administration is determined to have America lead the pack. Energy Secretary Wright’s social media post put an extra oomph in the market, especially nuclear stocks. Expect more of the same today, as President Trump will be joined by business luminaries in Pennsylvania, promoting the need for energy to power the Artificial Intelligence (AI) Revolution.

• Nuscale Power (SMR): +12%
• Oklo Inc (OKLO): +11%

Economic Calendar Kicks Off

 

The Consumer Price Index (CPI) report has come in below Wall Street’s consensus for the past three months, but everyone is sure this morning’s print will show signs of inflation.

But what if the number comes in below the consensus?  What if, when it comes to the ‘Tariff’ inflation story, that dog doesn’t hunt?  What if that dog doesn’t see, speak, or hear inflation?  According to Adobe (ADBE), several experts have a consensus that it would be a surprise based on their analytics.

Today’s Session

Finally, CPI on a year to year basis comes in above consensus.

This morning’s CPI was mostly a wash, also some headlines made it feel like it was hotter than Hades.  There wasn’t much direct evidence of tariff related inflation, which is why most of the prices out today point to surveys, not hard data.

Price changes over last year (June CPI report):

• Gas Utilities: +14.2%
• Electricity: +5.8%
• Shelter: +3.8%
• Food away from home: +3.8%
• Medical Care: +3.4%
• Transportation: +3.4%
• Used Cars: +2.8%
• Overall CPI: +2.7%
• Food at home: +2.4%
• New Cars: 0.2%
• Fuel Oil: -4.7%
• Gasoline: -8.3%

The big story today is the AI halo broadening out.

Banks are mostly lower, we’ll have more details in the afternoon.

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