Although consumers care about headline inflation, it's not the Fed's priority. The Fed has its eye on the core.

The employment index, however, declined. This could bode ill for October's payrolls.

The Iranian situation appears to be getting worse.

The Iran situation will stay in the background until early March when both the IAEA and OPEC meet.

The manufacturing sector seems to be on a very solid footing.

You could still see some downward price moves if the Iranian situation just fades from view. If it fades from the headlines you could see oil prices move down several dollars.

I don't think the energy prices that have only gone up since this report are some transitory aberration,

If energy price increases do not prove to be a transitory blip, inflationary fears are likely to increase and Fed hikes are likely to continue,

Geopolitical power is moving from energy consuming countries to the producers. We may see more of these supply shocks in the years ahead.

If there were a lot of homes in inventory, we could anticipate a bubble bursting, but there isn't,