CNBC Daily Open: Prices are low and markets are high

Disinflation successful process
U.S. header ostentation successful June rose conscionable 0.2% compared with May, and 3% from a twelvemonth agone — the lowest level since March 2021. Both user terms scale figures were 0.1 percent points little than the Dow Jones estimate. Excluding nutrient and vigor prices, halfway CPI was 0.2% higher period connected period and 4.8% higher connected an yearly basis.   

Highest adjacent this year
U.S. stocks advanced Wednesday, with the S&P 500 and the Nasdaq Composite closing astatine their highest level since April 2022, aft the cooler-than-expected ostentation report. European markets traded higher too. The benchmark Stoxx 600 added 1.5%, led by the mining assemblage which roseate 3.7%.

X, conscionable xAI
Elon Musk is already the CEO of Tesla and SpaceX arsenic good arsenic the proprietor of Twitter. Now, he'll person a caller rubric to adhd to that list: leader of xAI, an artificial quality institution that aims to "understand the existent quality of the universe." xAI seems to beryllium positioned arsenic a rival to OpenAI, Google and Anthropic. Musk volition stock much accusation connected the institution during a Twitter Spaces chat Friday.

Longer enactment astatine the Magic Kingdom
Bob Iger told CNBC successful February that helium had nary volition of staying successful his relation arsenic Disney CEO for much than 2 years, which would enactment the extremity of his tenure successful 2024. But the institution conscionable renewed Iger's contract by 2 years, keeping him arsenic CEO done 2026. Disney whitethorn beryllium disquieted astir succession plans — Bob Chapek, who was expected to beryllium Iger's successor, was ousted abruptly.

[PRO] C'mon Barbie let's spell banal picking
Barbie, the Greta Gerwig-directed summertime flick of 2023, volition beryllium released successful theatres July 21. In summation to filling up cinemas, the movie could springiness shares of this retailer a boost of up to 13%, according to concern slope Roth MKM.

Yesterday's CPI report, erstwhile viewed with past Friday's jobs report, suggests that it's clip to update a portion of economical orthodoxy.

The Philips Curve is an economical conception that claims ostentation volition autumn lone if unemployment rises. It seems to underpin the Federal Reserve's economical projections. In their quest to tame ostentation done higher involvement rates, the Federal Reserve expects unemployment volition rise to 4.1% by the extremity of this year.

Let's instrumentality a look astatine the existent jobs and ostentation numbers.

June's unemployment complaint was 3.6%, and has hovered betwixt 3.4% — a 53-year debased — to 3.7% since March 2022. Meanwhile, June's header ostentation was 3% annualized — its lowest successful 2 years and a 3rd of its highest successful June 2022.

Those numbers look to bespeak that ostentation tin proceed dropping without causing a spike successful unemployment. Can we, then, beryllium surviving retired the "dream script of monetary argumentation inducing little ostentation ... without a recession"? Steve Sosnick, main strategist astatine Interactive Brokers, thinks so. "At slightest arsenic of now, it's hard to dissuade the marketplace from being enthusiastic."

And enthusiastic markets were. The S&P 500 gained 0.74%, the Dow Jones Industrial Average added 0.25% and the Nasdaq Composite popped 1.15%. Both the S&P and Nasdaq deed a 52-week high, buoyed by traders' optimism that lone 1 complaint hike's left.

Traders are betting that there's an 81.9% accidental the Fed volition support rates dependable aft gathering this month, according to the CME FedWatch Tool. Just Tuesday, that fig was astir 72%.

If the shaper terms index, which comes retired aboriginal today, shows prices falling further, past we could so spot the extremity of the Fed's hiking rhythm soon.