We should be seeing better job reports in the next few months, and that could start on Friday,

A rebound to solid levels would indicate today's report was not the start of a trend, ... Another month near these levels would create some concern about the strength of the housing sector.

It's important [to come back after Friday] because it's part of my job. This is what it's all about. I'm proud of what I do -- it's important that [Bonds] is starting to hit the ball out of the field and important for everybody. It's great.

The manufacturing sector ended the year with some decent momentum that should carry it through the first part of the year.

The pull back in housing remains orderly, at least in the existing market. But the red flags are up. Inventories continue to rise and that is a warning that prices cuts could be coming, and soon.

So far, the cracks in the housing market are not that great, but with inventories skyrocketing, that may not last long.