The Fed will also be watching reports due out this week on durable goods orders and the cost of employment.

And durable goods orders in June fell an unexpected 1.6 percent.

Bonds got a lift from the drop in durable goods orders.

Big moves in durable goods orders are often ignored because the data is so volatile.

Excluding the military area, durable goods orders increased 4.1 percent in November.

January's 7.5 percent drop in durable goods orders was even less encouraging.

Excluding transportation products, new durable goods orders rose only by 1.6 percent.

Market participants said the report on durable goods orders for September, which is due out today, could show a decline of 1 to 2 percent.

This comes a day after the news that durable goods orders fell sharply last month.

Home sales, durable goods orders and consumer confidence are all off.