This week's set of news was familiar enough: retail sales were stronger than expected and even the preliminary reading on consumer sentiment improved. The industrial sector faltered. The producer price index surged in October as special factors caused a temporary spike. Most economists dismissed the spurt as a one-time event.

Fed Chairman Greenspan told the Joint Economic Committee this past week that the economy is experiencing a soft patch. He firmly believes that the Fed's action of reducing the federal funds rate target will help alleviate negative sentiment in the market and the economy.