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

Good afternoon. Today is Wednesday, July 12th, and I'm your host, Kim Kahn.

Our top story so far in today's session.

Sometimes the market gets what the market wants,

and what it expects.

Fed doves and equity bulls are cheering a June- CPI that showed inflation coming down more than anticipated, putting a

second rate hike this year in serious doubt. By the numbers, headline

CPI rose 0.2%, with the annual rate coming down to 3 percent. More closely watched by the

market's core C. P. I, which excludes food and energy, also rose 0.2 percent. That was the smallest

monthly rise since August 2021. The annual rate dropped below 5% to 4.8%.

Pantheon Macro simply says core inflation is falling fast with more to come. The market reaction was swift,

stocking the futures rallied and bond yields sank. Fed swaps immediately priced in a lower

chance that the Fed would hike again after it raises rates in the July meeting.

Right now the NASDAQ is up about 1 and a third percent, leading the SMP 500 in Dow, which are also

rallying.

The two-year Treasury yield, most closely tied to the Fed's fund rate, is near 4.7%.

The 10-year yield is around 3.9%.

Last week, the two-year had topped 5% with the 10-year above 4%. Shelter accounted for 70% of June's rise, but

strategist Charlie Bolello noted that after 25 consecutive increases, year-on-year

shelter's CPI has moved down for three straight months, from 8.2% in March, the highest

level since 1982, to 7.8% in June.

S.A. Investing Group leader leader Lawrence Fuller says

...