The week's economic reports didn't change anyone's view of the economy. Housing starts were a bit surprising on the upside, but the sector has remained strong throughout this period. Personal income and outlays were in line with expectations and reflect the flip side of the auto sales boom in October. Consumer sentiment appears to be improving, albeit at a snail's pace.

Congress convened for the holidays without producing an economic stimulus package. Most economists are viewing this favorably, believing a stimulus package would have come at the wrong time (after the recovery is already underway). Moreover, economists believe that the Fed is more likely to continue to cut rates without a fiscal stimulus bill.