"Her task before the committee was to balance the need for accommodative policy today while convincing senators that she, in her role as Chair, would take seriously the mandate to achieve price stability and avoid generating excessive financial stability risks in pursuit of lower unemployment. We believed she cleared this hurdle and look for her nomination to be approved by the Senate Banking Committee and the Senate," he added.
(Read more: Critics to Yellen: Show some QE regret)
Cashin said traders are now weighing every bit of data, after some recent economic reports like the ISM manufacturing survey and the October employment report were better than expected. "That got people thinking December was on the table," for the Fed to reduce some bond buying, he said.
Friday's data includes import prices and the Empire state survey, both at 8:30 am. Industrial production and capacity utilization are at 9:15 a.m. and wholesale inventories are at 10 a.m.
(Read more: Is the Fed really driving up stock prices?)
The Dow ended Thursday up 54 points at 15,876, and the S&P was up 8 at 1790, both setting new records.
According to S&P/Capital IQ, there have been 35 closing highs in the S&P 500 this year. S&P analyst Howard Silverblatt points out that the market breadth is near a modern day record, with 445 S&P stocks up for the year, and 54 down, with 221 up at least 30 percent. Another 138 are up at least 50 percent and 79 are up at least 50 percent. Nine are up 100 percent or more.
—By CNBC's Patti Domm. Follow here on Twitter