After a robust Monday that swept in fresh all-time high close trading levels on the Dow, S&P 500 and Nasdaq, markets gave it all back on this first day of actualized Q2 reports as earnings season hits an increased level. The Dow fell 0.37%, or 107 points, while the S&P gave back just about all its Monday advances, -0.35% or -15.3 points. The Nasdaq dipped -0.38% while the Russell 2000 notched its worst day this month, -1.88%.

Analysts will reflexively point to the higher-than-anticipated Consumer Price Index (CPI) headline number this morning, which showed 5.4% growth year over year for consumer prices overall. The June figure nearly doubled expectations to +0.9% this morning, which affirmed analysts’ outlooks who were bullish on inflation ramping up, even as recent economic metrics had begun to reflect headwinds in that department.

Boeing (BA Quick QuoteBA - Free Report) was notably lower today, weighing on the Dow by more than 4% as the company announced a newly discovered flaw on its 787 Dreamliner that will bring down delivery targets. The world’s biggest aircraft maker is still $100 per share off its March 2019 highs, which directly preceded the issues the company had with two deadly crashes on its 737 MAX plane. Boeing reports earnings two weeks from tomorrow.

As earnings season continues Wednesday morning, with new results from Bank of America (BAC Quick QuoteBAC - Free Report) , Citigroup (C Quick QuoteC - Free Report) and Delta Air Lines (DAL Quick QuoteDAL - Free Report) hitting the tape, Producer Price Index (PPI) reads for June is the figurative “other shoe dropping” from today’s CPI numbers. Fed Chair Jay Powell also takes to Capitol Hill once again to give his account of the U.S. economy as the Great Reopening continues to unfold. We also get an updated Beige Book.

Now off our hand-wringing regarding whether a flaccid 10-year is really a sign of economic growth slowing, market participants can go back to enduring the “pig in a python” business of witnessing real-time inflation grasping opportunities within this Great Reopening. It’s not always pretty, but it is a natural process of a growing economy. And sometimes, enduring a less-than-pleasant spectacle is still better than an unexpected surprise.

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