Separate report showed that the number of applications for U.S. unemployment benefits last week held at the lowest level since mid-April, further evidence of a strong labor market. Jobless claims were unchanged at 254,000 in the week ended July 9, according to a Labor Department report released Thursday. The median estimate in a Bloomberg survey called for filings to increase to 265,000. In April, applications dropped to a four-decade low of 248,000.

Friday's US session brought CPI, Retail Sales, Consumer Sentiment and Industrial Production figures. The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.2% in June on a seasonally adjusted basis, the U.S. Bureau of Labor Statistics reported. Over the last 12 months, the all items index rose 1.0% before seasonal adjustment. For the second consecutive month, increases in the indexes for energy and all items less food and energy more than offset a decline in the food index to result in the seasonally adjusted all items increase. The food index fell 0.1%, with the food at home index declining 0.3%. The energy index rose 1.3%, due mainly to a 3.3% increase in the gasoline index; the indexes for natural gas and electricity declined.

Sales at U.S. retailers rose more than forecast last month in a broad advance that shows consumers delivered for the economy in the second quarter. The 0.6% increase in June retail receipts exceeded the highest estimate in a Bloomberg survey and followed a 0.2% gain the previous month that was smaller than previously estimated, Commerce Department figures showed Friday. So-called core sales, used to calculate gross domestic product, rose a larger-than-projected 0.5% for a second month.

U.S. consumer sentiment unexpectedly fell in July to a three-month low, while expectations gauge showed that consumers were more pessimistic than forecast, according to a report published on Friday. The preliminary publication of the data for June from the University of Michigan's Consumer Survey Center showed that consumer sentiment fell to 89.5, from May’s reading of 93.5. That was its lowest reading since last April. Analysts had forecast no change.

Separate report on industrial production showed that in June grew at the fastest monthly rate in eleven months, on the back of strong auto and utility output, but analysts said the sector was still likely to face headwinds in coming months. The Federal Reserve said Friday that industrial production grew 0.6% in June, topping the MarketWatch-compiled economist consensus for 0.5% growth. This is the fastest growth since last July.

This week markets will be looking at:

Building Permits/Housing Starts (Tuesday 14:30)

Unemployment Claims (Thursday 14:30)

Philly Fed Manufacturing Index (Thursday 14:30)

Existing Home Sales (Thursday 16:00)