Analysts at TD Securities note that the markets are expecting the Philly Fed manufacturing report for July to show a modest rebound to 5.0 following the sharp 16 point decline to 0.3 in June.

• “The improvement is likely to reflect some easing on trade worries that affected manufacturing sentiment in June (US-Mexico standoff and fallout in US-China talks pre-G20) and would also be in line with the NY Empire report published earlier in the week.
• NY Fed President Williams will give a keynote address on monetary policy at 2:15 pm ET. We look for his remarks to further solidify the case for a 25bp cut at the July FOMC meeting — in line with our view. Recall that Williams recently acknowledged that arguments for monetary policy easing have strengthened.”