An obscure report next week could prove a boon for stocks

Why upcoming industrial data will be crucial for both the market and investors

Shortly before the opening bell on Tuesday, the Federal Reserve is set to publish its monthly industrial production report, which is expected to bounce back from a sharp decline.

Some are watching the index closely after hurricane devastation impacted the prior report.

"This is a very important gauge for how well the overall economy is doing," Eddy Elfenbein, portfolio manager at AdvisorShares, said Friday on CNBC's "Trading Nation. "

It is expected the index will post a month-over-month increase of 0.3 percent, according to FactSet data. This follows last month's decline of 0.9 percent, which reflected manufacturing, mining and electric activity in August. In the last industrial production report, the Fed attributed about 0.75 percentage point of the decline to hurricane effects.

Should the report turn up positive, stocks in the industrial space would benefit, Elfenbein said.

"This means areas like chemicals, mining, manufacturing, anything that's industrial that involves pulling things out of the earth and putting them together," he said, adding that the results are likely to impact upcoming inflation indicators, too.

"The Federal Reserve seems to think that inflation will become more of a problem into next year; we haven't seen the evidence just yet," he said.

Relatively tepid inflation growth this year has proved somewhat of a puzzle to economists and the Fed alike, and has been seen as a factor that may influence the central bank's decision to hike interest rates.