📈 Inflation cools

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The Fast Five → Inflation broadly cools paving way for rate cuts, see inflation breakdown in one chart, Biden confuses Kamala for Trump, Zelenskiy for Putin, Tesla shares drop after robotaxi unveiling delay, and Apple lets rivals use tap-and-go payments as EU's Vestager warns on tech charges'…

Calendar: (all times ET)

• Today: Producer price index (PPI), 8:30 AM

  • Consumer sentiment, 10:00 AM

Your 5-minute briefing for Friday, July 12:

A Message From Percent

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BEFORE THE OPEN

PRE-MARKET

MARKETS

• US stock indexes swayed dramatically as investors swapped growth for value after inflation data all but guaranteed a path for Fed rate cuts

  • Russell 2000 beat Nasdaq by the biggest one-day margin ever

  • Russell 2000 hit its highest since March 2022 in its best day since November

  • 'Mag 7' stocks tumbled 4.5% in their sharpest drop since October 2022

  • S&P and Nasdaq broke seven-day win streaks in their worst day since April

• Traders priced in a September rate cut and 40% chance of three by December

• Europe's Stoxx 600 hit a one-month high, just inches away from its ATH

• US 2Y to 10Y yields dropped to their lowest since mid-March

• Pound surged to a one-year high versus the dollar

• Yen surged 2.5% in its biggest jump since late-2022 on apparent BOJ intervention

• Emerging market currencies jumped to their highest since May

EARNINGS

• Delta missed Q2 revenue estimates and projected below-estimate Q3 sales as flight guts weigh on otherwise booming summer demand (link)

• PepsiCo beat Q2 EPS estimates but missed on revenue and gave a cautious FY outlook on weakened US consumer demand (link)

• What we're watching this week:

  • Today: JPMorgan, Wells Fargo, Citigroup

• Full calendar here

NEWS BRIEFING

Biden Confuses Kamala Harris for Trump, Zelenskiy for Putin

Inflation Broadly Cools, Likely Sealing Deal for Fed Cut

• Here’s the inflation breakdown for June 2024 - in one chart (link)

• Nasdaq sharply lower as investors rotate out of Big Tech (link)

• Stock rotation hits megacaps on bets Fed will cut (link)

• Emerging-market currencies highest since May on CPI data (link)

• US June budget deficit shrinks to $66B after calendar shifts (link)

• Oil rises for third day on improving demand and weaker dollar (link)

• Tesla shares down 8% after report of robotaxi unveiling delay (link)

• Apple lets rivals use tap-and-go payments as EU's Vestager warns on tech charges (link)

• Boeing nearing deal to sell 777X jets to Korean Air (link)

• Bain Capital to buy financial software vendor Envestnet in $4.5 bln deal (link)

• Pfizer stock rises as company advances studies of once-a-day weight-loss pill (link)

• Louisville-based GE Appliances to layoff 4% of global salaried workforce (link)

CRYPTO

• 40% of Ethereum's supply is locked up as the market braces for potential spot ETH ETF approvals (link)

• The SEC quietly dropped its investigation into Paxos and the BUSD stablecoin (link)

• Goldman Sachs plans to launch three tokenization projects by year-end amid renewed client interest in crypto (link)

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DAILY SHARES

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