Daily Market Update 7/17/12

Mortgage rates held steady Tuesday in quiet trading.  The June Consumer Price Index (CPI) was unchanged from May, matching forecast, and was 1.7% higher than one year ago.  Core CPI, which excludes volatile food and energy components, rose 0.2% and was 2.2% higher than last June.  Industrial Production increased 0.4%, beating expectations.  Federal Reserve Chairman Ben Bernanke told the Senate Banking Committee that "economic activity appears to have decelerated somewhat during the first half of this year" and the Fed is "prepared to take further action as appropriate to promote a stronger economic recovery".  He further indicated that progress in reducing unemployment is likely to be "frustratingly slow".  Stocks declined following his comments.  No other key economic data will be released today.