On Thursday, Retail Sales and Unemployment Claims figures were released. Sales at U.S. retailers rose in July on growing demand for everything from cars to clothing, and a decline the previous month was wiped away, signaling consumers are propelling growth in the world’s largest economy. The 0.6% advance matched the median forecast of economists and followed little change in June that was previously reported as a 0.3% drop. Eleven of 13 major categories showed gains.

Separate report showed that in the week ending August 8, the advance figure for seasonally adjusted initial claims was 274,000, an increase of 5,000 from the previous week's revised level. The previous week's level was revised down by 1,000 from 270,000 to 269,000. Analysts were expecting increase to 272,000. The 4-week moving average was 266,250, a decrease of 1,750 from the previous week's revised average. This is the lowest level for this average since April 15, 2000 when it was 266,250.

On Friday, PPI, Industrial Production and Consumer Sentiment figures were released. Producer Price Index for final demand advanced 0.2% in July, seasonally adjusted. Analysts were anticipating 0.1% increase. Final demand prices rose 0.4% in June and 0.5% in May. On an unadjusted basis, the final demand index moved down 0.8% for the 12 months ended in July, the sixth straight 12-month decline.

Industrial production increased 0.6% in July after moving up 0.1% in June, thus beating expectations on 0.4% growth. In July, manufacturing output advanced 0.8% primarily because of an increase in motor vehicle assemblies. The output of motor vehicles and parts jumped 10.6%, and production elsewhere in manufacturing edged up 0.1%. The index for mining rose 0.2%, while the index for utilities fell 1.0%.

Confidence among U.S. consumers eased for a second month in August as households braced for an increase in interest rates that could slow growth.The University of Michigan’s preliminary index of sentiment decreased to 92.9 from 93.1 in July, figures showed Friday. Incline to 93.5 was forecasted. Concern about the economy was counterbalanced by the most optimistic views on wages in 15 years.

Next week markets will be looking at:

Empire State Manufacturing Index (Monday 14:30)

Building Permits/Housing Starts (Tuesday 14:30)

CPI (Wednesday 14:30)

FOMC Meeting Minutes (Wednesday 20:00)

Unemployment Claims (Thursday 14:30)

Philly Fed Manufacturing Index (Thursday 16:00)

Existing Home Sales (Thursday 16:00)