Welcome to the DC Today, your daily market synopsis of the Dividing Cafe, brought to you every Monday through Thursday to bring you up-to-date information and perspective on financial markets.

Hello, and welcome to D.C. today. It is Wednesday, 12th of July, coming off of a nice little market rally today, although quite a bit

off. We were up something around 300 points or so this morning and still closed up about 86 points

in the day, but drifted a little lower, at least in stocks. Bonds caught a bid today pretty much

across the board. Yield curve flattened a little bit with two two year yields up a

little more than than 10 year and all of that was related to inflation data that we got on the day

from a headline in core cpI so core CPI was expected to go up something in the neighborhood of

0.3% for the month and it went up 0.2, so

less than expected. Year over year was annualized at 3% versus 3.1, which was expected.

So again, cooler than expected. With Core, so X, Food and Energy, So we've got a 4.8% year over year core reading

on CPI. So positive, in my opinion for the day. Markets are always a little bit, you know,

in anticipation of a number that could be bad, a little bit of a discount price dent. So you saw

that kind of come out. Markets rallied a bit, both in stocks and bonds. All in all, not a negative, a lot of negative to say on the day. If you take those numbers,

or inside of that number, inside of CPI, some of the notable movers, energy actually was up on the

month. It had been down in the last read, like 3.5. So it was up 0.6 percent inside of this

number. So you hit a little rise in energy prices, which in my opinion is a good thing,

indicative of growing economy and things. You had airline services come down quite a bit.

I think it was 8 percent, 8.1 percent for the month, which is 14 percent year over year.

So a big decline in airline costs as sort of that most likely

travel is kind of coming back in line with more normalcy. But all that to say, if we look back a

year ago, inflation, and actually like literally a year ago, meaning as of today, inflation peaked at

around 9.1% CPI. So we've come a long way. and I wrote this in the blog there, you know, if we would have gone

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