The Pi Node version 0.6.2 has been released! This introduces improvements to SoloHost, Node connectivity, and the Pi Desktop user experience. In parallel, Pi has successfully completed a distributed computing test through a SoloHost app, further advancing the utility of Pi Nodes beyond supporting the Pi blockchain. Together, these updates make it easier to run and manage applications on Pi Nodes and SoloHost, while advancing their distributed computing utility. Go to the Pi app to learn more!

Along with the new Node 0.6.2 release, Pi has completed an initial distributed computing functionality test through SoloHost with five volunteer Node runners. The devices operated by all five participants successfully completed the computing tasks sent to them automatically through a SoloHost app. The test validated the end-to-end flow of tasks across real devices, including connecting to a Pi coordinator, receiving and processing computing jobs, and reporting results back. Learn more

US stocks rose (SPX +0.5%, NDX +0.6%) as oil eased (brent crude -2.6% to $105) ahead of today’s August CPI, seen as the key signal for a possible Fed hike next week (odds now 70%). Core CPI is expected +0.2% vs headline +0.4% on higher gasoline prices. 10 year treasury yields slipped to 4.94%. Oracle jumped 6.6% on a beat and raised guidance; most chip stocks were higher. Despite higher inflation risks, I am skeptical of a Fed rate hike next week, unless today’s Aug CPI comes in above expectations. Strong 2026 S&P earnings growth of +32% y/y is fueling the current bull market but an inverted equity risk premium and a more restrictive Fed could lead to short-term equity weakness.​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​ Going forward my daily pre-market summary will only be available to Subscribers. Thanks for your continued interest and support.

UK Industrial Production (M/M) Jul: 0.2% (est -0.2%; prev -0.2%) - Industrial Production (Y/Y): 0.6% (est 0.2%; prev -0.2%) - Manufacturing Production (M/M): 0.9% (est 0.2%; prev -0.5%) - Manufacturing Production (Y/Y): 2.6% (est 2.1%; prev 0.5%)

Pi Network keeps shipping while PI drifts below a $1 billion market cap @PiCoreTeam released Node version 0.6.2 with SoloHost and connectivity upgrades, a day after its operational mainnet app count reached 82 on the way to the 100 milestone. The team also reports completing a distributed computing test. The token hasn't followed the development pace, trading near $0.088, down 3.4% on the week, with daily volume around $6.3 million.

🇺🇸US DATA RUNS HOT: INFLATION STICKY, DEMAND FIRM INFLATION • Headline PCE MoM: +0.2% vs +0.1% est.; prior -0.1% • Headline PCE YoY: +3.7% vs +3.6% est.; prior +3.7% • Core PCE MoM: +0.2% vs +0.2% est.; prior +0.1% • Core PCE YoY: +3.3% vs +3.3% est.; prior +3.3% GDP • Q2 GDP annualized: +1.5% vs +1.5% est.; prior +1.5% • Personal consumption: +3.4% vs +3.2% est.; prior +3.2% • GDP Price Index: +6.4% vs +6.2% est.; prior +6.2% • Core PCE QoQ: +3.6% vs +3.4% est.; prior +3.4% INCOME & SPENDING • Personal income MoM: +0.4% vs +0.2% est.; prior +0.2% • Personal spending MoM: +0.2% vs +0.1% est.; prior +0.3% • Real personal spending MoM: 0.0% vs 0.0% est.; prior +0.4% DURABLE GOODS • Durable goods orders MoM: +1.1% vs +0.5% est.; prior +0.5% • Durables ex-transportation: +0.4% vs +0.6% est.; prior +0.7% • Core capital goods orders: +0.2% vs +0.7% est.; prior revised to +1.7% • Core capital goods shipments: +1.4% vs +1.0% est.; prior revised to +2.4% BOTTOM LINE: Inflation remains sticky while consumer demand and headline durable goods beat expectations. GDP growth was in line, but stronger price pressures could keep the Fed cautious on rates.

BREAKING: US stock market futures fall as diesel prices hit a record high and Middle East tensions mount: 1. S&P 500: -0.6% 2. Nasdaq 100: -1.1% 3. Dow Jones: -0.4% 4. WTI Crude: +3.0% 5. Brent: +3.0% 6. Natural Gas: +2.0% Today marks day number 197 of the Iran War.

Last Sunday, I previewed caution on capex spenders & more optimism on their customers. This past wk, Mag7 (spenders) -5.8%, while Semi Index (customers) +1.2% with S&P -0.6%. This wk, we get earnings from four of the Mag7 for a more complete picture. Last week, WTI +8% and yields across the 2-30 yr curve increased by 9-15 bps, which was also a major issue for equity markets. De-escalation in Iran over the weekend should help both oil prices and yields during the start of this upcoming week. I continue to believe November 3rd mid-terms put a powerful impetus on the US administration to get oil prices down well before then. This is my current framework for AI investing: Positives: 1) The advent of Agentic AI on January 30th with the formalization of OpenClaw will drive 10-100x more token production. 2) Microprocessor vendors benefit in the move from 8 to 1 GPUs per CPU to ~unity in the move to Agentic AI. 3) The current philosophy of the hyperscalers that they cannot afford to lose the AI race keeps me more bullish on the recipients of that capex spend than the spenders. Negatives: 1) AI native revenues will be determined in the near-term by the trade-off between the top 1% of companies focusing on controlling their AI spend vs the ramp of the other 99% given the move from token maximization in March to token minimization by June. 2) Part of that control of AI spend will come at the expense of non-security software companies, IT services and headcount. 3) The cost of money is also more expensive which is a headwind to equity multiples. 11 of the major central banks have gone from cutting rates from roughly 2.7% in July of 2025 to 2.4% by early February to raising them to 2.6% today. At the same time, 10 year treasury yields across the 11 associated countries stayed flattish at roughly 3.2% from July of 2025 through February and has now risen to 3.8%. For megacap earnings this week, my belief is much like last week, ROIC (the interplay between capex and future EPS estimates) is likely to have an outsized impact on the near-term direction in stock prices. $META should have benefitted from increased engagement during the World Cup. But Meta revs grew 27% in Q3:25 vs 22% in Q2:25 creating tough comparisons for the Q3:26 guide. In addition, a potential launch of a public cloud and LLM API may embolden Meta to increase capex spend. Fortunately, valuation in the teens is low vs 22x CY26 PE for the S&P. $MSFT Azure has a high bar given Google GCP revs accelerated from +63% y/y in CQ1 to 82% in CQ2. But I wonder if the focus on AI cost control is an increasing tailwind for Co-Pilot. It operates natively within the Microsoft 365 ecosystem where enterprise work already happens. But Microsoft owns 27% of OpenAI which I remain negative on given they are caught between Google in consumer AI and Anthropic in enterprise. $AMZN AWS rev growth also has a high bar to clear due to GCP. In addition, higher oil prices are likely to be pressuring the logistics cost of their e-commerce business as well as consumer purchasing power. The shift of their 4 day Prime event to late June from early July should benefit Q2 but at the expense of Q3 guide. $AAPL is benefitting from the AI capex spend of others, especially their partner, Google. But I believe CQ3/CQ4 estimates are too high for both revenues and margins (due to rising semiconductor prices) and valuation at a 37x PE is expensive. From a longer-term perspective, I remain bullish on the potential upgrade cycle from a foldable phone with AI enabled Siri. Best of luck in the week ahead.

🦔Walmart beat on revenue and earnings but the stock dropped 9% today. Same-store sales grew 2.6% versus the 3.7% Wall Street expected, the slowest pace in over six years and the first miss in at least five years. Shoppers visited more often but spent less each trip. The company expects $2 billion in extra fuel costs this year and cut prices on thousands of items to keep people coming in. Q3 guidance came in below estimates. My Take Walmart is one of my favorite real-time looks of the American consumer, and the consumer looks worn down. People are visiting more often but buying less because they're stretching their dollars further than they were even a quarter ago. Higher-income families who used to shop at Target and Whole Foods are showing up at Walmart now, and while that helps Walmart's numbers it means the stores above them are losing customers they won't get back easily. The CFO pointed to $4 gas as the line where spending habits change, and I think he's right. Gas at $4, diesel at record levels, grocery prices still elevated after two years of increases, and credit card debt above a trillion dollars. Families are making choices they weren't making six months ago. Retail sales already fell 0.6% in July, and now the biggest retailer in the country is guiding lower for next quarter. I think we're watching the consumer run out of room in real time, and Walmart's numbers today are the most clear picture of it we've gotten. Hedgie🤗