The advance report shows wholesale inventories rebounding 0.2 percent in June from May, topping expectations for no change in June. Wholesale inventories are unrevised from the preliminary report showing a 0.3 percent decrease in May from April. Year-over-year, wholesale inventories are up 1.5 percent compared to June last year.

Durable goods inventories rise 0.1 percent in June from May while nondurables gain 0.3 percent.

The stronger than expected inventories readings in tandem with lower than expected goods trade gap should add a few tenths to the second quarter GDP reading.

The consensus sees inventories flat in June.

Wholesale inventories measure the monthly dollar value of inventories held by merchant wholesalers and are tracked to gauge inventory change in quarterly GDP. The advance report is released late in the month for the following month and is part of the Monthly Advance Economic Indicators report (which also includes data on retail inventories and international trade in goods). Final monthly data for wholesale inventories are released about two weeks later with the Wholesale Trade report which also includes initial monthly data on wholesale sales.

Investors need to monitor the economy closely because it usually dictates how various types of investments will perform. The stock market likes to see healthy economic growth because that translates to higher corporate profits. The bond market prefers a slower rate of growth that won't lead to inflationary pressures. Wholesale inventory data give investors a chance to look below the surface of the visible economy, especially for unwanted build. If inventories are growing too fast relative to economic growth, then both production and employment will probably have to slow while those inventories are worked down.