Welcome to Seeking Alpha's Wall Street Lunch, our afternoon update on today's market action, news, and analysis.

Good afternoon. Today is Tuesday, August 12th, and I'm your host, Kim Khan. Our top story so far. Retail

inflation held few surprises in July, with the overall number steady but core inflation, which the Fed watches,

continuing a re-acceleration that started in March. The July core consumer price index, which

excludes food and energy, ticked up to a 3.1% annual rate, its highest level since February.

That exceeded the 3% consensus and the 2.9% pace in June. Core CPI rose 0.3% on the month in line with forecasts.

Economist Justin Wolfers says, for two years inflation was declining toward the Fed's target. That seems to be over.

Including food and energy, the CPI rose 0.2% month on month as anticipated. On a year-on-year basis,

that comes to a 2.7% increase,

compared with the 2.8% consensus, and even with June. The index for shelter costs increased

0.2% in July and was the primary factor in the All-Items Month. The Food Index was unchanged.

The Energy Index dropped 1.1% in July, with the index for gas falling 2.2% on the month.

Guy Labar, a strategist at Investment Bank, Janney, says there was not really much price pressure

from tariffs, with cost being absorbed into corporate margins now, but companies will raise prices

on tariffed goods into the fall. The stock market seemed relieved that the numbers didn't

come in hot, disrupting

rate-cut expectations after a weak jobs report. Equities rallied while Treasury yields fell.

Skyler Wynan, Chief Investment Officer at Reagan Capital, says consumers are feeling wealthier again

thanks to rising stock and home prices, and that is brought back FOMO, fear of missing out,

and dip buyers who have been rewarded time and again.

The U.S. consumer and corporations are as healthy as they ever have been, and have plenty of

dry powder to prolong this stock market rally. The odds of the Fed cutting three times this year

...