Wall Street Holds Steady

"You actually need income growth to support consumer spending," especially in an environment of high energy prices and tight credit, he says.

Thomas thinks that even if there were a stumble in the first quarter or two of next year, the economy will be in a better position when the second half arrives. "We expect we'll avert a recession," he says.

Elsewhere, the University of Michigan's preliminary consumer sentiment survey for December came in at 74.5, its lowest reading in two years, and was a bit below what was expected.

The U.S. Treasury market was anything but quiet, and prices were off sharply on the long end. At 4 p.m. EST, the two-year note was down 4/32 in price, yielding 3.10%. The 10-year note was losing 25/32, yielding 4.10%, and the 30-year bond was sinking 1-16/32, yielding 4.56%. The dollar was mixed.

For the week, the Dow gained 1.8%, the S&P 1.6% and the Nasdaq 1.7%.

On the corporate side, a merger was in the news, as Macrovision (MVSN Quote) set plans to acquire Gemstar-TV Guide (GMST Quote) for $2.8 billion.

But shareholders on both sides weren't happy with the deal, with Macrovision plunging 21% to $20.44, a 52-week low, and Gemstar dropping 17% to $4.99.

Even though the financials bear watching every day, three names in particular were under pressure after being the subject of negative analyst calls.