This is what you call a rally mode as the Street continues to shake off fears of recession and weak labor market, which caused a choppy action since the beginning of August.

The S&P 500 is ready to take off after breaking above its 50-day moving averages. The S&P 500 has to close above 5,600.

Real Estate (XLRE) and Utilities (XLU) are the only sectors in the red today as all other sectors head higher. The two sectors leading the pack are Consumer Discretionary (XLY), up 2.74% and Technology (XLK), up 2.56%.

Industrial production in July fell by 0.6% m/m and below estimates of a decline of 0.3%. Manufacturing production in July fell 0.3% m/m and below estimates of a 0.2% decline. Notably, Utilities also fell by 3.7% m/m. Hurricane Beryl is responsible for the difference between the reported number and estimates. 

August NAHB Housing Market Index dropped to 39 from 41 in July, and missing consensus of 43. The good news is that with mortgages rates dropping, future sales expectations are improving.

Business Inventories increased to 0.3%, in-line with consensus but down from the previous month. The increase was driven by a surge in retail stocks, while gains at wholesalers were modest.