Market Moving Insight and Analysis. Join Jim Kramer, David Faber, and me, Carl Kintanilla, on the opening bell hour of CNBC Squawk on the Street. Good Tuesday morning. Welcome to Squawk on the Street. I'm Carl Kintanio with Jim Kramer, David Faber and post nine of the New York Stock Exchange. Big day from macro as May CPI comes in a touch light on headline, down to 4% year-on-year. That's the lowest in two years.

Futures are steady, market now baking in no hike from the Fed tomorrow.

A roadmap begins with inflation's downward path, cut by more than half now since last year's peak.

But still, 4% what are the implications for the Fed?

Plus, cloud revenues giving Oracle a big boost. to shares were up yesterday in anticipation of the earnings.

They're up again ahead of the open this morning.

UBS downgrades Apple saying it sees weaker demand ahead for iPhones.

Let's begin with this market reaction to this morning CPI data.

Jim, I know you love to look at internals.

Yes. Thank you, Energy, down 3, 6. Um, used cars up four, four. Okay, so used cars is not, not up to date. Uh, the last few weeks used cars, uh, the margin from used cars and news, and MSRP, by the way, is down too for the new, uh, has really gaped in that used cars have kind of really plummeted,

maybe 5%, which is not captured by this, but that's okay.

I mean, you know, you're looking forward.

That's a category that is a win for the Fed.

The losses house, and we just don't have it on.

And all I can say is David, I don't know if you see some of the notes on student loans.

But maybe people just won't be able to go anywhere and won't bid up housing.

But right now, told brothers a million dollars.

Yeah.

And by the way, it can go to 1.1.

There is an expectation of that rents are going to start a fairly significant decline. I know, but where is it coming from? What do you mean when you say that? Where is it coming from? Well, I mean, we have whole regions of the country where there are people bidding worse for rents. It's true. It has to do with regions, right? Yeah.

The Cleveland region. Yes, Cleveland. One of the fourths, one of the hottest reasons. It's apparently millennials. Cincinnati, right? Yeah. Yeah. No, I mean, this is... Because it's cheap. It's a little anecdotal. But the fact is, is that that I don't have an answer for. I don't have an answer for for housing in general.

Right.

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