Core CPI Cools, Lifting Stocks and Bonds

Stocks are ready to rally on a weaker-than-expected core Consumer Price Index.

The headline CPI gained 0.3% overall, matching the consensus estimate in the Reuters poll. The core rate, which excludes food and soaring energy prices, gained 0.1%, a tenth of a point shy of the expected 0.2% increase.

Focusing on the cool core, stock futures and bonds were trending higher. At 8:31 a.m. EDT, the S&P 500 futures were up 12, about 12 points above fair value and indicating a strong open. The 30-year Treasury was up 18/32 to 100 20/32, dropping the yield to 6.027%. ...