[Morning Report] Interest rate cut expectations are justified due to CPI deceleration, and the dollar and yen plummeted in rotation to high-tech stock sales & delayed stocks

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The July FOMC, which gives confidence to the US CPI and FRB, needs attention for interest rate cuts
Today, the US Consumer Price Index (CPI) for June was announced, but it fell below expectations, and the content showed that inflation continued to slow in April and May. The deceleration in housing costs was also conspicuous, and the content gave the FRB confidence that interest rates would be cut.

Looking to lower US interest rates, no timing specified = SF Fed President
On the 11th, President Mary Daly of the US San Francisco Area Federal Reserve suggested that there is almost no intention to support it at the Federal Open Market Committee (FOMC) at the end of this month while showing the view that interest rate cuts will be justified in a period not too far away.
Related articles:San Francisco Federal Reserve Governor Says Interest Rate Adjustments Are Likely To Be Justified

Rotation in the US stock market: justifying expectations of interest rate cuts due to CPI deceleration, buying high-tech stock sales & overdue stocks
Since the US consumer price index (CPI) in June decelerated more than expected, interest rate cut observations for September intensified in the market. A large-scale rotation occurred in the US stock market on the 11th. While investors sell major high-tech stocks, they are buying large amounts of overdue stocks, from capital goods stocks to small-cap stocks. US bond yields declined from the view that interest rate cuts were imminent. It was completely reversed from before, and purchases flooded into stocks enjoying the benefits of lower interest rates. As for the index, the Nasdaq index fell 1.95%, and while the Philadelphia Semiconductor Stock Index (SOX Index) fell 3.47%, the small-cap index Russell 2000 rose 3.57%.

Among individual brands, Tesla (TSLA) fell 8.4% due to the postponement of the robo-taxi event. Apple (AAPL) fell 2.3%. It was reported that a settlement was reached with the European Union (EU) by opening up settlement technology to competitors. Semiconductor stocks were all weak, with NVIDIA falling 5.6% and Qualcomm (QCOM) falling 4.3%. The airline company Delta (DAL) fell 4.0% due to disgust with downward revisions to earnings. Meanwhile, the housing construction company KB Home (KBH) rose 10% due to lower mortgage interest rates. Pharmaceutical company Pfizer (PFE) rose 1.1% due to advances in obesity treatment drug development. Luxury EV manufacturer Lucid (LCID) rose 7.9% in anticipation of long-term partnerships with Saudi government funds. Microstrategies (MSTR) related to virtual currency rose 4.1% due to the announcement of stock splits. The general weakness in Japanese ADR stocks was conspicuous.

The dollar and yen received the US CPI plummeted, and there are also reports that the Ministry of Finance is implementing intervention
The dollar and yen plummeted in the NY exchange market on the 11th. The CPI for June fell below expectations, and since the content justified the FRB's expectations of interest rate cuts, the dollar yen also plummeted along with a sharp decline in US bond yields. There was a scene where it plummeted all at once from around 161.50 yen before the announcement to around 157.45 yen at one point. Some reports reported that the Ministry of Finance had intervened as government officials. Treasurer Kanda's statement was conveyed regarding that, and it was stated that “the presence or absence of intervention is not in a position to comment.”
Related articles:Expectations for a stronger dollar are deep-seated US exceptionalism still surrounds the dollar
The dollar yen in the morning was around 158 yen 90 yen, up to 157 yen 40 yen in overseas markets

US Democratic Party expands voice for “drop Biden”
US President Joe Biden and camp officials were pressured to respond on the 11th so that voices of backlash within the Democratic Party did not expand into a big force. Voters and fellow members of parliament are concerned that Mr. Biden will continue the election and that he will serve a second term.

It is reported to Tesla that the announcement of robo-taxis for sale will be postponed to October
Tesla plummeted. I'm disgusted that it was reported that the announcement of the robot taxi, which was scheduled for August, is scheduled to be postponed to October. Bloomberg told it as a story of the people involved. It is said that the purpose is to secure time for the team working on this project to manufacture further prototypes (prototypes).

Apple and EU settle over payment services and end antitrust investigation
The European Union (EU) expressed the view that Apple of the United States decided to use its own mobile payment service “Apple Pay” technology for other companies' mobile wallets and payment services, so it sufficiently responded to concerns about competition law (antitrust law). Along with this, a long-term investigation into Apple Pay was completed.

MicroStrategy has risen and announced a stock split of 10 installments
Microstrategies (MSTR) related to virtual currency have risen. A stock split of 1 share into 10 shares was announced before the start of trading. Class A and Class B common shares are split into 10 parts. It will be implemented for shareholders as of the end of business on August 1.

The day before, “Shares bought!” Total rough — what are the expected stocks leading up to today? ―
<4523><6981>Takakyu, Eisai, Murata, <8166>etc.