Bond markets are under slight pressure this morning as a result of higher than expected July inflation results at the producer level and better than expected July Industrial Production figures.  Stocks are up, with the Dow up just over 100 points. The July Producer Price Index (PPI) came in up .2% which matched expectations, but the Core PPI (excluding food and energy) came in up .3% vs expectations for a .1% increase.  Industrial Production for July came in up 1% vs expectations for a .6% increase (and a decrease of .1% in June - revised from a previously reported increase of .1%).  Industrial Capacity Utilization was 74.8% vs expectations for 74.5% (and 74.1% for June).  On the housing front, July Housing Starts came in at an annualized pace of 546,000 vs expectations for a 555,000 pace.  Building Permits came in at an annualized pace of 565,000 vs an expected 573,000 pace.