Key Takeaways
- Federal Reserve Chair Kevin Warsh pledged to make high inflation a "thing of the past" during his first congressional testimony, as June CPI data showed a cooling to 3.5% annually.
- Boeing (BA) delivered 64 airplanes in June and booked 121 gross orders, bringing its official backlog to 6,202 aircraft.
- Wells Fargo (WFC) topped Q2 earnings expectations with $22.62 billion in revenue, while the CFO signaled that Net Interest Margin (NIM) should stabilize by Q4 after modest Q3 compression.
- Nvidia (NVDA) and Mitsubishi Heavy Industries are exploring a partnership to develop advanced cooling and power systems for next-generation AI data centers.
- Anthropic launched "Claude for Teachers," providing free premium access to its AI tools for verified K-12 educators in the U.S. to assist with lesson planning and state standards.
Warsh Signals "No Tolerance" for Elevated Inflation
In his debut semiannual Monetary Policy Report to Congress, Federal Reserve Chairman Kevin Warsh emphasized a "resolute commitment" to restoring price stability. Warsh stated that the central bank has the tools necessary to deliver its 2% inflation target and will not "pass the buck" on rising prices. His testimony coincided with a fresh Bureau of Labor Statistics report showing headline CPI fell 0.4% in June, the largest monthly drop since 2020, though annual inflation remains at 3.5%.
Despite the cooling data, Warsh provided no specific guidance on future interest rate moves, maintaining his stance against "forward guidance" to preserve policy flexibility. Market sentiment currently reflects an 86% probability that the Fed will hold rates steady at its next meeting. Warsh also highlighted the resilience of the labor market and noted that keeping inflation low is essential for achieving lower long-term Treasury yields and more affordable mortgages.
Boeing Deliveries Surge as Backlog Expands
Boeing (BA) reported a significant uptick in activity for June, delivering 64 aircraft to customers. The month’s performance was bolstered by 121 gross orders, offset by only eight cancellations, resulting in a net gain that pushed the company's total backlog to 6,202 units as of June 30. This represents a steady climb from the 6,178 units reported at the end of May.
The aerospace giant's delivery figures included 42 of its 737 MAX models and 13 of the 787 Dreamliners. Through the first half of 2026, Boeing has booked a total of 408 orders after cancellations. Analysts view the increased delivery pace as a critical step for Boeing to improve cash flow and meet surging global demand for narrow-body aircraft.
Wells Fargo Beats Q2 Estimates, Eyes NIM Stability
Wells Fargo (WFC) delivered a strong second-quarter performance, reporting GAAP profit of $2.00 per share, which significantly beat the analyst consensus of $1.72. Revenue rose 8.2% year-over-year to $22.62 billion, driven by a 5% increase in net interest income (NII) and robust investment banking fees. The bank maintained its full-year NII guidance of approximately $50 billion.
During the earnings call, the Wells Fargo CFO noted that while the bank expects "modest NIM compression" in the third quarter, Net Interest Margin (NIM) is projected to stabilize by the fourth quarter of 2026. The bank continues to benefit from the removal of previous regulatory asset caps, allowing for more aggressive balance sheet growth and a recently announced 11% dividend increase.
AI Infrastructure: Nvidia and Anthropic Make Strategic Moves
In the technology sector, Nvidia (NVDA) is reportedly eyeing a collaboration with Mitsubishi Heavy Industries to address the massive power and cooling requirements of "AI factories." As next-generation GPUs generate unprecedented levels of heat, the partnership aims to integrate industrial-scale liquid cooling and energy management technologies into data center designs.
Simultaneously, AI startup Anthropic is expanding its footprint in the education sector with the launch of Claude for Teachers. The new initiative offers verified K-12 educators in the U.S. free access to premium features, including the ability to align lesson plans with academic standards across all 50 states. This move places Anthropic in direct competition with OpenAI and Google for dominance in the classroom AI market.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.