S&P futures vs fair value: -8.0. Nasdaq futures vs fair value: -14.5.

Total CPI rose 0.2% (consensus 0.1%) in June, the smallest rise since January. The more closely-watched core rate rose 0.2%, matching economists' forecasts and leaving the year/year rate at 2.2%. That's closer to the Fed's "comfort zone" and will at worst keep policy makers on hold with any tightening efforts for the time being. Housing starts unexpectedly rose 2.3% last month to 1.467 mln (consensus 1.45 mln) but building permits fell 7.5% to 1.41 mln (consensus 1.49 mln). The response in both stocks and bonds has been relatively muted. Futures trade still indicates a dismal open for the cash market while the yield on the 10-year note (+3/32) remains at 5.03%.