Market moving insight and analysis join Jim Kramer, David Faber, and me, Carl Kintenea, on the opening bell hour of CNBC Squawk on the Street. Good Tuesday morning, welcome to Squawk on the street. I'm Carl Kintenea with Mike Santoli here at post 9 of the New York Stock Exchange. David Fabers at H. Kramer has the morning off. Futures holding on to some gains here, even though monthly core CPI does come in. About a 10th hot, more than half driven by shelter and gas, yields bound, settling a little bit.

June rate cut odds largely stable here.

Our roadmap begins with the macro picture.

Future swing as inflation does tick higher.

And Jamie Diamond says the economy is booming, but that a recession may still be on the table.

Plus, quote, enormous amounts of demand, Oracle's cloud revenue surging fueled by growing

AI needs.

And the Boeing Challenge, citing delayed aircraft delivery Southwest cuts capacity and therefore

rethinking its 2024 financial forecast.

Let's begin with this market reaction to CPI.

We mentioned a 10th hot at 4 tenths, sheltering gas, about 60% of that.

Some surprises in here, Mike, apparel up six-tenths is a topic of discussion.

Yes.

I think what the market did, and there was a real quick reflex where it said, okay, this

is a hotter than expected.

You have to run the more the bearish playbook, bonds sold off, yields higher, stocks backed

off.

Then the rethink was, well, the things that matter and that will translate into what the

PCE inflation number is going to say, combined with how high a threshold was set by Powell last week for

changing their premise that they are preparing for likely rate cuts in the summer. So I think all

that fit together. The core services stubbornly, you know, firm inflation readings there, do not

necessarily translate into the PCI is going to go the same direction.

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