Producer prices rose a bit more than expected in August, as the cost of services increased solidly. Underlying wholesale inflation also continued to rise, but only slightly.

Lawmakers still struggle to agree on a new stimulus package. Republicans have proposed a 'skinny' stimulus bill, and Democrats have said they will not support it.

Jobless claims missed estimates last week as employment gains tapered. Continuing claims rose to 13.385 million, an indication that labor market improvement may be tailing off.

Mortgage applications to purchase a home rose 3% last week from the previous week and were 40% higher than a year ago. Refinances were up 60% year over year.

The number of homes for sale nationwide is in record low territory, and some of the nation's most affordable areas are seeing the largest drops in housing inventories.

Bidding wars continue to send home prices higher. More than two-thirds of homes sold in July were on the market for less than a month, according to NAR.