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

Good afternoon. Today is Wednesday, August 14th I'm your host Kim Khan. Our top story so far.

You can't always get what you want, but if you try some time you just might find you get what you need.

The big July-CPI report failed to deliver the anticipated market

excitement coming in almost exactly as expected. Big digging down,

there was something for bulls, bears, doves, and hawks. Both headline and Core CPI, which excludes food and energy,

were a 0.2% for the month, in line with forecasts.

The CPI did 2.9% annually,

a bit lower than the 3% expected, while the core rate fell to 3.2% year on year as

anticipated.

Market reaction was mixed, with stocks slightly higher but choppy, and near-term yields

also slightly higher.

What gave does satisfaction was retail inflation moving further towards the Fed's target of 2%.

Skyler-wine, Chief Investment Officer Reagan Capital, says that's enough for a quarter-point Fed rate cut in September,

as a deeper 50-based-point rate cut would cause more harm than good as the Fed would be signaling that they're worried about the health of the economy.

The Fed wants to show a measured pace in their interest rate movements, which 25 basis point

increments show. A 50 basis point rate cut would signify calamity and may actually shock the stock and bond markets, he added.

Still, the hopes for a half point cut were hardly shattered. The tumbling dice of traders still price in a 45% chance. What was hawkish about the report? It

left many shouting, Gimme Shelter disinflation. Michael Ashton, who writes the

inflation guy blog, notes that shelter is the biggest and stickiest piece and the foreordained The inflation and remain there, which is basically where break-evens are these days.

Bad news this month. Primary rents are 0.49% month on month, and owner-equivalent rent

was 0.36% compared to 0.36% and 0.28% last month. This is where it's

...