The Business Week Ahead...

Housing is the week's theme and the outlook is good. Home builders have been upbeat and a gain for Monday's housing market index is expected. A dip is the call for housing starts on Tuesday but not housing permits where a solid gain is expected. Solid gains are also expected for FHFA house price data on Thursday, gains that would underscore the importance of price appreciation in a low inflation economy. Initial jobless claims will also be posted on Thursday and the weekly data will match the sample week for the monthly employment report. Though a rise in claims is expected, it would be a rise from a very low level. The Philly Fed follows on Thursday and is expected to confirm the convincing strength seen in Empire State, a report where readings may have gotten a lift from the dollar's decline and oil's gain.