Why Is the Oil Price Much Higher? And Why Is Cisco’s Stock Down -6%?

The media focus on Cisco's revenues; investors focus on the margins

Key Takeaways

• Deflationary Thumbprints are Emerging: In addition to the tame CPI and core readings yesterday, there was added good news in that the Cleveland Fed’s trimmed mean measure also came in fairly light at +0.2% MoM in July. It will undoubtedly raise some eyebrows — maybe even some ire — to dare suggest that there are some deflationary thumbprints in this report, because the Atlanta Fed’s “flexible” CPI (purely cyclical) fell -0.5% after a -1.7% slide in June.