Good morning investors! Inflation is a little higher than expected but we have other reasons to celebrate.
Today we cover:
Consumer prices up
Bank earnings
Nvidia and AMD are back in the game
📊 Economy and News
Consumer Prices Up in June, Trump Pushes for Fed Rate Cuts
Consumer prices rose 0.3% in June, with the annual CPI hitting 2.7%, the highest since February.
Core inflation, excluding food and energy, increased 0.2% monthly, with a 2.9% annual rate.
Tariff-sensitive apparel and household furnishings prices rose 0.4% and 1%, respectively, while vehicle prices fell.
Shelter prices, up 0.2% monthly, were the largest CPI contributor.
President Trump cited the report to urge the Federal Reserve to cut interest rates, claiming low inflation could save $1 trillion annually. However, the Fed, led by Chair Jerome Powell, remains cautious, with markets expecting no rate change in July but a potential quarter-point cut in September.
Inflation-adjusted hourly earnings dipped 0.1% monthly but rose 1% yearly. Markets showed mixed responses, with stock futures varied and Treasury yields mostly down.
Global hits:
UBS sees ’a further slowing in U.S. economic growth’ in second half of 2025.
Morocco’s economic growth to slow to 4% in 2026. Similarly, Singapore’s economy likely to slow in second half.
Saudi Arabia’s inflation rises to 2.3% in June, driven by housing costs. Elsewhere, India’s cooling inflation prompts rate cut calls, raises concerns over weakening domestic demand.
Good to know: Trump announces trade agreement with Indonesia, including 19% tariff.
Apple just spent $500 million to source a material that’s critical for iPhones from the U.S.
Westinghouse plans to build 10 large nuclear reactors in U.S. Lastly, Whoop says FDA is ‘overstepping its authority’ with warning about blood pressure feature.
Something about China: China’s property investment falls 11.2% y/y in January-June but the country’s June factory output beat forecast, retail sales slow. There are signs of worry as the country’s economy set to slow in Q2 as pressure from US tariffs mounts. We already know that China’s Q2 smartphone shipments dropped by 4.0% Y/Y and home prices fell at the fastest pace in 8 months.
Sponsored by Nomad Cloud
Join over 200,000 subscribers who get the best travel tips, remote work hacks, and unbeatable deals. Whether you're picking your next destination or upgrading your gear, we've got you covered. Start traveling smarter today.
📈 Stocks
S&P 500 6,243.76 (-0.40%)
DJIA 44,023.29 (-0.98%)
NASDAQ 20,677.80 (+0.18%)
BRENT CRUDE 68.71 (-0.28%)
* Prices as of Jul 16th, 12:20 AM UTC
Bank earnings are here
Citigroup reported a Q2 2025 net income of $4.02 billion, up 25% from last year, exceeding Wall Street estimates with earnings of $1.96 per share (vs. $1.60 expected) and revenue of $21.67 billion (vs. $20.98 billion). Markets revenue rose 16%, driven by a 6% increase in equities, while banking revenue grew 18%. CEO Jane Fraser noted volatility as a profit driver and projected $84 billion in full-year revenue.
BlackRock Inc., the largest global asset manager, reported Q2 EPS of $12.05 on Tuesday, exceeding estimates of $10.78, but revenue of $5.42 billion fell short of $5.45 billion. Despite managing $12T in assets, its stock declined due to lower-than-expected fees of $94M against $114M forecasts.
Wells Fargo shares fell after Q2 results missed expectations, with the bank cutting net interest income guidance due to weakening consumer credit trends.
JPMorgan Chase & Co. posted Q2 EPS of $5.24 and revenue of $45.68 billion, beating Wall Street’s $4.48 and $43.81 billion estimates. The stock rose, though gains were tempered compared to a large one-off gain in the prior year’s quarter.
Expansions: Rolls-Royce invests $75 million to expand South Carolina plant. On the other hand, Joby Aviation says it is doubling production at its air taxi manufacturing hub.
GM expands production of gas-powered SUVs and trucks in Michigan. And, CoreWeave is investing $6B in U.S. AI infrastructure, including data centers and energy assets, to meet growing enterprise demand.
Exciting: Tesla’s Model Y debuts in India priced at a hefty $70,000, as the EV maker ‘tests the waters’. Elsewhere, China’s Baidu to bring its driverless cars to Uber globally. Lastly, Broadcom's Tomahawk Ultra chip boosts AI data flow in cloud networks with increased bandwidth and energy efficiency.
Chips are back: Nvidia and AMD jumped after the two companies announced plans to resume sales of key AI chips to China. A few months ago, Nvidia reported an $8B+ loss due to a sales halt.
After meetings with President Trump and a China business conference, CEO Huang announced on CCTV that the U.S. Commerce Dept. informally approved resumed sales.
Treasury Secretary Bessent told Bloomberg TV the restriction was a bargaining chip in U.S.-China trade talks. Nvidia, previously banned from selling high-tech chips to China, adapted designs to bypass restrictions, with the H20 chip as the latest block.
Bloomberg Intelligence estimates the reversal could recover $15B in Nvidia’s data center revenue. AMD, up 6.41%, also gained clearance to resume M1308 chip shipments, avoiding an $800M loss.
What are you expecting from this earnings season?
🔐 Crypto
Bitcoin $117 675 (-1.17%)
Ether $3 123 (+3.52%)
Solana $161 (-0.32%)
Total market cap $3.68T (-1.53%)
* Prices as of Jul 16th, 12:20 AM UTC
Trump-Backed Crypto Bills Fail in House, Impacting Industry
Several cryptocurrency regulation bills supported by President Trump failed to pass a key procedural vote in the House on July 15, 2025, with a 196-223 vote, as 13 Republicans joined Democrats to block the measure.
This setback, during "Crypto Week," stalls bills like the GENIUS Act for stablecoin regulation, the CLARITY Act for asset classification, and a proposal to ban central bank digital currency.
Crypto stocks, including Circle (-7%), Coinbase (-4%), and MARA Holdings (-2%), dropped after the vote. House leadership plans a potential revote to advance the legislation.
💵 Personal Finance
Rising Financial Anxiety Grips 7 in 10 Americans
A Northwest Mutual survey reveals 69% of Americans feel anxious about their financial future, an 8% rise from 2023, driven by high credit card debt ($1.18 trillion) and economic uncertainties like tariff policies.
Financial therapist Megan McCoy explains financial anxiety as a vague fear of future instability, unlike stress from specific events.
To cope, experts suggest:
Build a Buffer: Save 3-6 months’ worth of expenses in an emergency fund, prioritizing cash over big purchases.
Focus on Control: Schedule “worry time” to list concerns, dividing them into actionable steps (e.g., daily savings transfers) and uncontrollable factors (e.g., market trends).
Here are a few more tips:
💰 Be a Better Investor
"Never spend your money before you have earned it."
Think you know stocks?
Pro puts your instincts to the test with our Bull vs Bear AI stock advisor. Plus: exclusive deep dives, smarter tools, and zero fluff.
What did you think of today's newsletter?
👩🏽⚖️ Legal Stuff
Nothing in this newsletter is financial advice. Always do your own research and think for yourself.