The strength across all labor-market indicators does suggest the Fed will likely raise rates in March.

Labor market weakness isn't spreading from the hurricane- affected areas to other areas of the country. We are starting to see hurricane-related claims drop off, and more important for the economic outlook, jobless claims excluding the hurricane effects remain low.

It's definitely a labor market that's generating enough jobs to bring down the unemployment rate over time. That process was interrupted by the hurricanes and appears to be resuming.

Any way you slice it, the report suggests homebuilding is holding up quite well, and it will continue to be strong until we see a significant rise in mortgage rates. There's no evidence that a peak has been reached in the housing market.

Inventories will be rebuilt for some months to come and that will bolster economic growth.

The jobless claims drop shows good strength in the labor market at the end of the year. It shows that the economy has recovered after the hurricanes and is heading into the new year with good momentum and good job prospects.