Cooler PCE Print Won't Offer Long-Term Relief, MU "Priced for Perfection"

• Hot ISM prices paid index (77.9 actual vs 72.9 estimate) suggests long-lasting inflation that will trickle down to consumers, potentially slowing spending.
• Micron (MU) posted 'A+ results' with significant data center revenue growth and strong guidance, yet the stock fell ~3%, indicating it was 'priced for perfection.'
• The broader market rally is concentrated in a 'very small number of stocks' (mega-caps/Mag 7), with a lack of breadth below the surface raising concerns about overall market support and sustainability.

The discussion highlights concerns about persistent inflation, indicated by a hot ISM prices index, which could impact consumer spending despite a lower PCE print. Micron's strong earnings, while 'A+ results,' saw the stock decline, suggesting a 'priced for perfection' scenario in the tech sector. The market's rally is noted to lack breadth, being driven by a small number of mega-cap stocks, raising questions about its sustainability.