The Week Ahead...

It's a light schedule for data but one that packs a strong one-two punch on Thursday with retail sales and on Friday with industrial production. Retail sales, no matter how they're diced, are expected to show solid gains in July especially for motor vehicles. Industrial production on Friday is also expected show solid gains though not all forecasters agree with some seeing only marginal strength for the manufacturing component. There are also updates on inflation with import & export prices expected to extend their long run of declines while producer prices are expected to show only the most incremental of gains. Inflation may be dormant but gains for retail sales and industrial production would have the doves on the run for the September FOMC.