The November unemployment report was bad on Friday, but declining oil prices and mortgage rates could be the stimulus that the economy needs.

The good news this week is that preliminary figures are showing stronger-than-expected Black Friday retail sales.  The bad news is the upcoming November employment report is expected to show a loss of another 350,000 jobs, which would be the worst drop since 1980.

Futures are telling us there will be more gains when the stock market opens Monday morning. This upside bias comes from the weekend’s government rescue plan of Citibank (C), which injected $20 billion in cash and guaranteed billions in assets.

Wall Street is bracing for some really bad news from this week’s economic reports. Housing starts are expected to hit half-century lows.  The Consumer Price Index is expected to fall 0.9% in October, the biggest one-month decline since the government began tracking the CPI in 1947.

Wall Street will be focusing on retail sales this week.  The nation’s largest retailer, Wal-Mart (WMT) releases earnings on Thursday and the Commerce Department releases its October retail sales index on Friday.

There still isn't any confidence that we've already hit a market bottom.  Even with a possible market shake-out still ahead and a horrible jobs number on Friday, Wall Street is leaning towards a positive week.

The stock market is expecting more weak data and earnings this week, but the big event this week will be an expected interested rate cut by the Fed on Wednesday.

Economic data to be released this week should be decidedly negative.  Corporate earnings reports should miss targets, causing more volatility in the stock market.  Wall Street’s only hope is that this weekend’s meeting of G7 leaders will help restore confidence to the markets.

One obstacle has been hurdled now that President Bush has signed the bailout legislation, but there are still problems ahead.  A deteriorating economy, seized-up credit markets, and poor corporate earnings must still be dealt with.

Market direction is still uncertain for Monday. Congress has just finalized the bailout agreement, but investors will need to analyze the final plan before giving the stock market a lift.  Plus, there’s still worry that another major bank will go under, with Wachovia (WB) the odds-on favorite.