Industrial Production and Capacity Utilization
Tomorrow has two reports that we will be watching. The first is June's Industrial Production data at 9:15 AM ET that will give us an indication of manufacturing sector strength. This data tracks output at U.S. factories, mines and utilities. It is expected to show a 4.5% rise in production, indicating that the manufacturing sector strengthened significantly last month. That would basically be bad news for bonds and mortgage rates, but this report is considered to be only moderately important. Therefore, any reaction will be minimal unless there is a wide variance from forecasts.