Industrial Production and Capacity Utilization
Wednesday has a morning and afternoon event that we will be watching. June's Industrial Production data is the first, coming at 9:15 AM ET. This data measures output at U.S. factories, mines and utilities, giving us an indication of manufacturing sector strength. 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.