Moe’s Market Memo — July 17, 2026

3 minutes

Weekly data-driven insights on the markets and economy


Mohammad Abouchleih, MBA, CIMA®
Investment Analyst


Middle Seat Monetized

Yesterday, United Airlines announced a new upsell option that guarantees passengers an empty middle seat in select extra-legroom rows on its Airbus A321XLR aircraft, effectively turning personal space into a premium product. The move reflects a broader airline strategy of unbundling fares and monetizing comfort, as carriers increasingly charge for amenities that were once included in the ticket price. As competition intensifies, airlines are reshaping cabin configurations and pricing models to generate higher-margin revenue from travelers willing to pay for added convenience and space.1

Inflation Won’t Quit

This week, government data showed grocery prices rose in June, with food-at-home inflation remaining elevated despite easing from earlier peaks. While lower prices for staples such as eggs, butter, and ice cream provided some relief, increases in produce costs and record-high beef prices highlighted ongoing supply pressures and uneven pricing trends. Persistently high grocery bills continue to strain household budgets, prompting retailers to lower prices and intensifying competition on affordability.2

Pocket-Sized Intelligence

Apple said Tuesday that it is exploring a potential partnership with startup PrismML to compress advanced AI models so they can run directly on iPhones, a move that could reshape how its devices handle artificial intelligence. The approach could make Siri faster and more private while reducing reliance on cloud computing, latency, and infrastructure costs. If successful, it could shift more AI processing to edge devices, though questions remain about performance trade-offs, battery life, and broader implications for chip demand.3

Statewide AI Freeze

This week, New York enacted the nation’s first statewide moratorium on large-scale AI data centers, pausing new projects amid concerns about rising energy demand, higher utility costs and environmental impacts. The move underscores growing public scrutiny of the infrastructure powering the AI boom, as policymakers balance economic competitiveness with grid reliability and resource constraints. With similar proposals emerging across the country, the decision could mark a regulatory turning point in how and where AI infrastructure expands.4

Merger Under Fire

As of this week, Paramount is pressing ahead with its planned acquisition of Warner Bros. Discovery, targeting a late-September closing despite a multistate antitrust lawsuit seeking to block the deal. The company says the merger would strengthen its competitive position in a rapidly changing media landscape, while regulators argue it could reduce consumer choice and increase prices. With legal challenges mounting and key approvals still pending, the outcome could have significant implications for the balance of power across streaming, film, and pay TV.5

Demand Meets Discipline

AI demand remains strong across the technology sector, with executives saying demand for computing power and infrastructure continues to outpace available supply despite volatility in semiconductor stocks. At the same time, businesses are taking a more measured approach to AI spending, placing greater emphasis on costs, efficiency, and return on investment rather than broad-based deployment. The trend points to continued long-term growth in AI, with spending becoming increasingly targeted and driven by specific business uses.6


[1] Josephs, Leslie. “United Airlines Says Paying for an Empty Middle Seat Is Its Latest Upsell.” CNBC, 14 July 2026, https://www.cnbc.com/2026/07/14/united-airlines-for-empty-middle-seat-is-new-upsell.html. Accessed 14 July 2026.
[2] DiPalma, Brooke. “Grocery Inflation Remained Sticky in June, but Eggs and Butter Prices Offered Some Reprieve.” Yahoo Finance, 14 July 2026, https://finance.yahoo.com/economy/article/grocery-inflation-remained-sticky-in-june-but-eggs-and-butter-prices-offered-some-reprieve-170730367.html. Accessed 14 July 2026.
[3] Sigalos, MacKenzie. “Apple PrismML AI Compression for iPhone.” CNBC, 14 July 2026, https://www.cnbc.com/2026/07/14/apple-prismml-ai-compression-iphone.html. Accessed 14 July 2026.
[4] Honerkamp, Paxton. “New York Considers Ban on AI Data Centers Amid Energy and Infrastructure Concerns.” CNBC, 14 July 2026, https://www.cnbc.com/2026/07/14/new-york-ai-data-center-ban.html. Accessed 14 July 2026.
[5] Rizzo, Lillian. “Paramount and Warner Bros. Discovery Merger Faces Lawsuit.” CNBC, 14 July 2026, https://www.cnbc.com/2026/07/14/paramount-wbd-merger-lawsuit.html. Accessed 14 July 2026.
[6] Kharpal, Arjun. “AI Demand for Chips and Data Centers Fuels Stock Volatility.” CNBC, 12 July 2026, https://www.cnbc.com/2026/07/12/ai-demand-chips-data-centers-stock-volatility.html. Accessed 12 July 2026.

This material is for general information and educational purposes only. Information is based on data gathered from what we believe are reliable sources. It is not guaranteed as to accuracy, does not purport to be complete and is not intended to be used as a primary basis for investment decisions.

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