Q4 GDP took a surprising dip, and though employment numbers were good, the unemployment rate went up! What's going on? A vast array of additional indicators were positive, propelling the Dow Industrial Average to a new high.

Much of this week's housing news reflected sizeable swings over the last two months-as is common during the off season. But downgrades to earnings expectations appear to have been premature as profits and revenues generally are topping lowered forecasts. There are key exceptions, however, on the downside.

There has been much talk about a stalling recovery and sluggishness in earnings. This past week showed notable gains in several sectors of the economy-the consumer, housing, and industrial production.

Economic news was limited this week. And apparently exhaustion has set in temporarily on addressing fiscal cliff issues (yes, the spending cut issues remain). Focus has largely been on corporate earnings with expectations generally lowered but making it easier to beat.

Markets have been fixated with how and when the U.S. fiscal cliff would be resolved. This past week included passage of an income tax package that retained income tax cuts for most individuals.

Fiscal cliff optimism for a resolution rose and fell during the week. Despite disappointment Thursday night on a House vote that did not occur, optimism about a temporary resolution appears to be outweighing pessimism..

No, the fiscal cliff problem has not gone away. However, the Fed's FOMC met and it was one of the four meetings that occur in the third month of the quarter.