Market Wrap: The latest inflation data from the Personal Income and Spending Report for June was UGLY with overall PCE inflation jumping by 0.8% for the month and 4.1% over the past year, the worst jolt in 27 years. The Core PCE inflation rate matched expectations at 0.3% leaving the year-over-year rate at 2.3% and above the Fed's target rate between 1-2%. To make matters a little worse, Personal Income was above forecasts at 0.1% vs. -0.1% while Personal Spending also came in a little high at 0.6% vs. a 0.5% consensus. Bonds sold off hard on the hot inflation news with our benchmark FNMA 6.0% bond plunging 44bp for a close at $100.00. The stock market didn't fare much better as energy, commodities, and materials stocks were sold on a sizeable drop in crude oil futures from a reduced threat to oil infrastructure in the Gulf of Mexico from Tropical Storm Edouard. Even if there is storm damage to refineries and oil platforms the oil market believes there will be less demand for oil and the price will continue to drop. The major indices again ended in negative territory with the Dow losing 42 points to close at 11,284 while the NASDAQ Composite Index lost 25 points to close at 2,285. The broader S&P 500 Index dropped 11 points to close at 1,249.