CPI flat, Empire Manufacturing improves, production falls
Meanwhile, the Empire Manufacturing index was still in negative territory in May. But the -4.55 reading was an improvement from the -14.65 number for April. The new orders sub-index fell to -9.01 from -3.88, while the employment sub-index improved to -23.86 from -28.09. The index that tracks expectations about the economy six months down the road climbed to 43.8 from 33.1.
Market reaction? Not a heck of a lot in currencies and stocks. The dollar index is still up a bit, while stock futures are still down a bit. But bonds have given up almost all of their pre-data gains. The long bond futures were recently up 2/32 to 123 6/32 after touching 123 24/32 earlier. Gold is also popping to its morning high.
UPDATE: Industrial production dropped 0.5% in April. The prior month's decline was revised to -1.7% from the -1.5% originally reported. Capacity utilization fell to 69.1% from 69.4% in March.