Even as investors get more and more bullish about the outlook for the U.S. economy, the economy’s underlying foundation continues to erode.

Now that the results of the U.S. bank stress tests are finally in the books, the extent of the capital shortfalls are known and – in many cases – are actually being addressed.

Corporate earnings will take center stage again this week as certain financials hope to follow last week’s upbeat announcement by banking giant Wells Fargo & Co. (WFC) with some decent earnings reports of their own.

Early indicators suggest that there is still some life left in the American consumer. The hordes were back out for the Thanksgiving weekend, though mega discounts means retailers will still struggle to break even. Martin Denholm says investors should stick with bargain-oriented retailers like Wal-Mart (NYSE:WMT) and TJX Companies (NYSE:TJX).

OPEC to Meet in November; Iceland Melts Down; Unemployment Improves; Micron Makes Cuts; National City Next to Fall?; No Christmas Cheer for Retailers