Perhaps looking ahead to Tuesday morning's CPI reading for July, they were probably right in doing so, because when the numbers were announced an hour before the opening bell, the data showed that inflation rose by the most in six months.
The latest data from the Bureau of Labor Statistics - the same government agency that routinely fudges employment numbers in their monthly non-far payroll releases - showed that "core" inflation, which excludes food and energy costs, rose 3.1% over the past year in July, ahead of June's 2.9% increase and an indication that tariffs are indeed causing some upwards price pressure.
Monthly core prices increased 0.3%, also ahead of last month's 0.2% gain, at the highest level in six months. Increases in shelter and food costs were offset only by lower fuel costs as gas prices moderated in July.
This data in no way, shape, or form gives the Federal Reserve any rationale to lower interest rates, as President Trump continues to urge. If anything, the FOMC, at their September meeting may consider raising the federal funds rate to slow down inflation, which has apparently now-reignited.
While interest rates are considered the Fed's most effective weapon in its war against inflation (don't be fooled, they love inflation. Just look at the last 112 years), it's more likely to further strangle the economy, which, according to anecdotal evidence, has been slowing for the better part of a year.
As usual, upon the release of the BLS data, stock futures exploded to the upside, because on Wall Street, any news - good or bad - is a reason to rally. The fact that the CPI data for July was close to expectations does not imply that it was necessarily good, but the horde of traders and speculators that populate lower Manhattan would like retail investors to believe the economy is booming and those higher prices at stores and restaurants are but figments of their overactive imaginations.
What a load of hogwash are these so-called "markets." Should stocks open higher, as the futures are presaging, there's a very good possibility or strong probability that they will reverse course and end lower for a second straight session.
With a half hour until the open, Dow futures are higher by 250 points; NASDAQ futures ahead by 153; and, S&P futures galloping upwards by 36 points.
Interestingly, after being slapped down on Monday in a massive short-selling spree on the COMEX, gold is beginning to show signs of life before the opening bell, down only $4.00 at $3,400. Gold advocates and traders in precious metals are still awaiting word from the administration concerning the recent ruling that 39% tariffs would apply to 1 kilogram and 1000-troy-ounce gold bars, those most-often required for trade and futures gamesmanship.
President Trump signaled on Truth Social yesterday that gold would not be tariffed, but the post fell on deaf ears. Gold did not budge at all, probably because the market now understands that Trump's big mouth and social media posts are meaningless, and more than likely designed only to move markets so that insiders can capitalize.
The messaging is clear as day: "Buy more stocks, people. By no means should anybody buy gold, or, dread, silver. Who needs ancient relics or pet rocks, anyhow?"
Additionally, members of Trump's administration are slowly beginning to walk back the importance of the "conference" with Putin, slated for Friday, somewhere in Alaska. It's a big f--ing state, people. Good chance it won't happen at all, and besides, between neocon influence, Europe's steady recalcitrance, and Zelensky's refusal to accept reality, the chances for any kind of breakthrough are practically nil.
Carry on. Nothing to see here. Absolutely nothing.
At the Close, Monday, August 11, 2025:
Dow: 43,975.09, -200.52 (-0.45%)
NASDAQ: 21,385.40, -64.62 (-0.30%)
S&P 500: 6,373.45, -16.00 (-0.25%)
NYSE Composite: 20,483.16, -41.09 (-0.20%)
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