Stock Market Update

The stock market is on track for a modestly higher open as the major averages look to capture nice gains for the week.

The July Retail Sales Report was a good report that was made even better by the upward revisions to the prior month's data. Total retail sales increased 0.5% month-over-month, as expected, following an upwardly revised 0.9% (from 0.6%) in June. Excluding autos, retail sales increased 0.3% month-over-month, as expected, following an upwardly revised 0.8% increase (from 0.5%) in June.

The key takeaway from the report, which isn't adjusted for inflation, is that it reflects a decent pace of consumer spending that isn't owed entirely to price increases; however, it does reveal a few points of spending caution, evidenced by the 0.6% decline in electronics and appliance stores, the 1.0% decline in building material and garden equipment and supplies dealers, and the 0.4% decline in food services and drinking places.

Industrial production decreased 0.1% month-over-month in July (Briefing.com consensus -0.1%) following an upwardly revised reading of 0.4% (from 0.3%) in June.

The capacity utilization rate was 77.5% (Briefing.com consensus 77.5%), versus an upwardly revised 77.7% (from 77.6%) in June.