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The market’s summer breezy vibes may soon be put to the test.
The July Consumer Price Index is out, and it showed a slight acceleration in core inflation versus June as tariffs began to take greater hold. The CPI Index excluding food and energy rose 0.3% in July, which follows a 0.2% increase in June. Components that increased over the month include medical care, airline fees, recreation, household furnishings, and used cars and trucks.
On the upside, the core inflation rate came in line with estimates.
“I think that the market’s going to have to come to grips with the Fed is going to cut rates, and is it going to be the right move for the Fed to make now? Last year they cut rates, and the market decided it wasn’t the right move. And it shot yields on the 10 [year Treasury] and the 30-year up over 100 basis points,” Jim Bianco of Bianco Research said on Opening Bid.
“I think that’s the risk we face right now if the market decides this is not the right move.”
Here are some deeper stock dives beyond what we discussed on Opening Bid.
Momo AI trade CoreWeave (CRWV) will report earnings after market close today. The stock is now more than triple its March IPO price!
Here is what I think the Street is looking for from Coreweave. If it could hit these marks, the stock could renew its upward momentum that has been on delay since early June:
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Revenue beats estimates by a double-digit percentage. Key CoreWeave customer Microsoft had a huge quarter on the AI use front, benefitting the company.
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Backlog increases compared to the first quarter.
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Earnings thump estimates — in spite of robust investments in capex.
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Management tamps down concerns on insider selling after its IPO lock-up expires on Thursday. That frees up 83% of Class A shares beginning the morning of Aug. 15, points out Citi.
CoreWeave’s valuation leaves no margin for error. The stock trades at big-time premiums to the market on a price-to-sales and price-to-book ratio basis.
Intel (INTC) shares are in the green today as President Trump walked back his apparent dislike for the company’s new CEO Lip-Bu Tan after meeting on Monday.
Don’t be fooled by the upside price action, however. I would say this should apply for the rest of 2025!
This isn’t a case like Apple (AAPL), where CEO Tim Cook kisses Trump’s butt and the company is exempt from various tariffs. Intel is a fundamental disaster. People in the industry I talk to are unsure if the company will ever turn around, given 1) how fast AI chip development is occurring; 2) how far it’s behind Nvidia (NVDA) and Advanced Micro Devices (AMD).
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