Higher energy costs across the nation led wholesale prices higher in June, which could lead to inflationary pressures down the road. The Labor Department reported that the Producer Price Index (PPI) rose by 0.8% in June, above the 0.3% expected and was the largest gain since September. The Core PPI, which strips out volatile food and energy, was up 0.2% and above the 0.1% forecasted. The PPI measures the average change over time in the selling prices received by domestic producers for their output. The prices included in the PPI are from the first commercial transaction for many products and some services.

The Consumer Sentiment report revealed that optimism waned a bit in early July as consumers felt better about the current environment, but less optimistic on the recovery's prospects. Sentiment improved among lower income households while the $75,000 and over club worried about the notion of higher interest rates. The index came in at 83.9 for the first reading in July, down from the final read of 84.1 in June.

Over in the corporate earnings arena, JPMorgan Chase and Wells Fargo reported that quarterly earnings rose in the latest quarter. JPMorgan reported that earnings per share rose by 32% to $1.60 a share or $6.5 billion, easily beating the forecast of $1.44 on lower loan losses and lower expenses.

The nation's largest home loan lender, Wells Fargo, saw a 19% jump in earnings as home loan rates were near record low levels during the period. The bank recorded its 14th consecutive gain in quarterly profits and the ninth straight record report. Wells recored 98 cents a share versus the consensus of 93 cents.