Episode 1369: Tuesday - July 14, 2026
Markets Rise on Softer Core CPI, Bank Earnings, and the Inflation vs. Deflation Debate
Markets Rise on Softer Core CPI, Bank Earnings, and the Inflation vs. Deflation Debate
Brian Szytel recaps a mixed but positive market day with the Dow up about 45 points, the S&P 500 up 0.4%, and the Nasdaq up just under 1%, helped by a broad financial-sector rally despite somewhat mixed large-bank earnings. Oil rose with increased Middle East tensions and volatility around the Strait of Hormuz. The main story was a better-than-expected CPI report: headline CPI fell 0.4% versus expectations for -0.1%, and core CPI was essentially flat (-0.02%) versus a forecast of +0.2%, bringing year-over-year core to 2.6% and pushing the 10-year yield down about 3 bps to 4.58%, with Fed futures repricing to lower odds of hikes. He notes one print isn’t a trend, highlights a stronger NFIB Small Business Optimism Index, and explains why deflation is worse than modest inflation, citing Japan’s long period of minimal growth.
00:00 Market Wrap and Earnings
00:45 Oil Jitters Middle East
01:01 CPI Surprise and Rates
02:39 Fed Talk and Futures
04:12 Small Business Optimism
04:26 Inflation Versus Deflation
05:35 Japanification Case Study
06:34 Wrap Up and Sign Off
Links mentioned in this episode: DividendCafe.com
Brian Szytel is the Co-CIO and Senior Managing Director of The Bahnsen Group.
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