Moe’s Market Memo

By Hightower St. Louis on July 18, 2025

Weekly data-driven insights on the markets and economy

Third Week of July 2025

Magnetic alliance

Apple and MP Materials announced a $500 million partnership on Tuesday to supply rare earth magnets and build a recycling facility, reinforcing Apple’s U.S. supply chain. The magnets will be produced in Fort Worth, Texas, with shipments beginning in 2027, while a new recycling line will be developed in Mountain Pass, California. Apple says the deal will create dozens of new jobs and help secure critical materials for advanced technology.[i]

Inflation inches up

Consumer prices rose 0.3% in June, pushing the annual inflation rate to 2.7%—the highest since February and above the Federal Reserve’s 2% target. While core inflation remained steady, signs of tariff-related price increases emerged in categories like apparel and household furnishings. Despite mixed signals, markets remained steady as the Fed is expected to hold rates in July and consider a cut in September.[ii]

Google’s power play

On Tuesday, Alphabet’s Google announced a $25 billion investment to expand AI and data center infrastructure across the U.S.’s largest electric grid. It will also spend $3 billion to modernize two Pennsylvania hydropower plants through a deal with Brookfield Asset Management. The move comes as the PJM Interconnection region faces surging electricity demand from AI and data centers.[iii]

McGraw Hill eyes IPO

On Monday, McGraw Hill announced plans to return to public markets with an IPO targeting a $4.2 billion valuation and up to $537 million in proceeds. Backed by Platinum Equity, the textbook publisher reported more than $2 billion in annual revenue and serves nearly all U.S. public school districts and many higher education institutions.[iv]

Home sales hit headwinds

The U.S. housing market is cooling as high mortgage rates, rising inventory, and waning demand slow price growth to its lowest pace in two years. June saw just 1.3% annual home price growth, with nearly one-third of the top 100 markets now experiencing price declines of at least one percentage point. While the Northeast and Midwest remain strong, markets in the South and West are seeing the sharpest drops.[v]

Superman soars again

“Superman” soared to a record-breaking $122 million domestic debut over the weekend, marking the strongest opening for a solo Superman film and a bold start to James Gunn and Peter Safran’s new DC era. The duo’s 10-year plan to reinvigorate the studio’s franchises across TV and film is off to a promising start, with the film also pulling in $95 million internationally.[vi]

Mohammad Abouchleih, MBA, CIMA®

Investment Analyst

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[i] Subin, Samantha. “MP Materials stock rips 20% higher after $500 million Apple deal for rare earth magnets.” CNBC, 15 July 2025, https://www.cnbc.com/2025/07/15/apple-mp-materials-magnets-rare-earths.html. Accessed July 16, 2025.

[ii] Cox, Jeff. “Inflation picks up again in June, rising at 2.7% annual rate.” CNBC, 15 July 2025. https://www.cnbc.com/2025/07/15/cpi-inflation-report-june-2025.html. Accessed July 15, 2025.

[iii] Kimball, Spencer. “Google to invest $25 billion in data centers and AI infrastructure across largest U.S. electric grid.” CNBC, 15 July 2025, https://www.cnbc.com/2025/07/15/google-to-invest-25-billion-in-data-centers-ai-infrastructure-in-pjm.html. Accessed July 15, 2025.

[iv] Bhandari, Ateev and Biswas, Pritam. “Publisher McGraw Hill targets $4.2 billion valuation in US IPO.” Reuters, 14 July 2025, https://www.reuters.com/business/media-telecom/textbook-publisher-mcgraw-hill-targets-42-billion-valuation-us-ipo-2025-07-14/. Accessed July 14, 2025.

[v] Olick, Diana. “Nearly one-third of major U.S. housing markets now see falling home prices.” CNBC, 14 July 2025, https://www.cnbc.com/2025/07/14/us-housing-markets-falling-prices.html. Accessed July 14, 2025.

[vi] Whitten, Sarah. “‘Superman’ launches James Gunn’s DC cinematic universe with $122 million domestic opening.” CNBC, 13 July 2025, https://www.cnbc.com/2025/07/13/warner-bros-superman-opening-weekend-box-office.html. Accessed July 14, 2025.