What to Expect in the Markets This Week

After a shortened trading week in the U.S. due to Thanksgiving holiday closures, markets will return to a full schedule next week, and investors can count on a robust set of data releases and earnings along with it. Companies will also continue to watch Thanksgiving sales, which extend through Cyber Monday. Those sales from Nov. 25 to Nov. 29 are projected to increase 12% from last year, led by middle-income households, according to a survey by Deloitte.

The nation’s debt limit will also come back into focus when Congress returns from its Thanksgiving recess. Last month, Treasury Secretary Janet Yellen had warned the nation could hit its debt limit by Dec. 3. On Tuesday, she wrote that lawmakers likely have until Dec. 15 to lift the debt limit, but that still only leaves Congress a few weeks to approve new funding. That timeline could collide with the Biden administration’s $1.75 trillion Build Back Better plan, and stall the bill. Senate Majority Leader Chuck Schumer stated in a letter to Democratic lawmakers that the Senate’s schedule for the rest of the year could run longer than predicted.

The housing market will kick off the week’s data releases with pending home sales on Monday, and the Case-Shiller Home Price Index on Tuesday. The Conference Board’s November reading for consumer confidence will follow, and we’ll get an update on how managers are feeling with manufacturing and services PMIs from the U.S. and around the world. We’ll also find out whether seasonal hiring ahead of the holidays boosted nonfarm payrolls for the month of November on Friday.