The economic calendar in the coming week will make investors work for their Thanksgiving dinner with a glut of data crammed into Wednesday's session.
Minutes from the Federal Reserve's meeting earlier in November will be the most closely analyzed release of the day as investors look for confirmation that an interest rate hike in December is a go. The Federal Open Market Committee opted to leave rates unchanged at its November meeting, but reiterated that the case for a hike had strengthened. Fed members have recently taken a hawkish tone, pointing to upward trends in inflation and a robust labor market as reason the economy is ready for another rate hike.
"With incoming data, financial conditions, and Fed commentary all still supportive of a near-term rate hike, the FOMC minutes are likely to be less informative over December rate hike prospects," TD Securities analysts wrote ahead of the Wednesday afternoon release. "That said, the balance of Committee members in favor raising rates as soon as the next meeting will be closely watched. An overwhelming majority as well as more optimistic views over inflation should help further solidify December rate hike expectations."
A December rate hike has a high probability among Wall Street pundits with any doubt after Donald Trump's recent election as U.S. president quickly evaporating. The chances of a December rate hike currently sit at 90%, according to CME Group fed funds futures.
Also on the economic calendar in the coming week: Existing home sales for October will be released on Tuesday; durable goods orders for October, weekly jobless claims, the final November reading on consumer sentiment from the University of Michigan, and new home sales for October will be issued on Wednesday.
The choppiness that has characterized market activity since the election will likely continue, particularly as more details of Cabinet appointments emerge from the Trump camp. President-elect Trump's proposed plans, including an influx of infrastructure spending, have already moved markets. Increased spending has bolstered the chances of higher inflation and rising interest rates, pushing the U.S. dollar to surge and bond prices to drop.
"Looking forward, we see sector volatility continuing through year-end," David Schiegoleit, managing director of investments at U.S. Bank Wealth Management, told TheStreet. "We are still constructive on equities, but see potential pockets of turbulence, as the formation of the next White House administration unfolds. Heading in to next year, we favor growth-oriented sectors of the stock market, such as consumer discretionary and technology, as well as the pharma and biotech areas of healthcare."
On the earnings calendar, Tyson Foods (TSN - Get Report) , Vipshops (VIPS - Get Report) , Sina Corp (SINA - Get Report) , Palo Alto Network (PANW - Get Report) and Brocade Communications (BRCD) will report on Monday; Seadrill (SDRL - Get Report) , Kirklands (KIRK - Get Report) , Hormel Foods (HRL - Get Report) , Dollar Tree (DLTR - Get Report) , DSW (DSW) , Burlington Stores (BURL - Get Report) , Campbell Soup (CPB - Get Report) , Barnes & Noble (BKS) , Urban Outfitters (URBN - Get Report) , HP Inc. (HP - Get Report) , Hewlett Packard (HPE - Get Report) and Gamestop (GME - Get Report) on Tuesday; and Deere & Co. (DE - Get Report) on Wednesday.
All markets are closed on Thursday for the Thanksgiving holiday and the New York Stock Exchange will close at 1 p.m. EST on Friday.