The US markets were basically flat last week with the Dow finding a resistance level at 14,000.

2012 Q4 earnings season has been mostly positive. With over 300 companies having reported, we can see that about 68% of companies have beat expectations.

In more good news for the housing market and financial sector, TransUnion reported that fewer people are falling behind on their mortgage payments. The delinquency rate is down 14% from this time last year which represents the largest yearly decline since the end of the subprime lending nightmare in early 2009.

The NFIB small business optimism index improved slightly for the month but still remains at near record lows. The index is a compilation of surveys done each month by the National Federation of Independent Business (NFIB) and its members. The index is meant to be an indicator for what small businesses in the United States are thinking and feeling. Unfortunately the index is indicating that most small business owners are still not optimistic about the marketplace and do not plan to expand in 2013.

M&A activity has really been heating up lately as an announcement was made last week that Warren Buffett is leading an investment group to take HJ Heinz private. Additionally, American Air and US Airways agreed on an $11 billion merger that will create the world’s largest airline. (NOTE: this is not meant to be a recommendation to purchase or sell any of the companies referenced). M&A transaction volume is up 27% from a year ago and is another good indicator that the financial sector is continuing to recover.