The Week Ahead: November 14-20, 2016

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Congress returns and President-elect Donald Trump is expected to announce his other choices for some top administration spots, following Sunday’s announcement of Reince Priebus as his chief of staff.

Lawmakers come back to Washington but will only be in town for a week before leaving for a Thanksgiving break. But there will be some activity. House Republicans plan to select leaders for the coming Congress, with the watch on House Speaker Paul Ryan (R-Wis.) and other leadership posts. Democrats will also select their leaders for the new Congress next year.

There are also a handful of hearings on tap, including a House Agriculture Committee session on the Supplemental Nutrition Assistance Program (SNAP) and a session on the Securities and Exchange Commission (SEC) and the Rules Committee will hold a session on the Midnight Rules Relief Act.

The Senate also returns to Washington. Attention will also be on work to get things hammered out on details to keep the government operating, with Senate Majority Leader Mitch McConnell (R-Ky.) signaling they are looking at ways to fund things for the remainder of Fiscal 2017.

Lots of economic updates ahead including consumer activity and inflation, with the reports all in the final four days of the week. Tuesday’s economic calendar includes Retail Sales, Empire State Manufacturing, Import & Export Prices and Business Inventories. The schedule Wednesday has PPI-FD, Industrial Production, Atlanta Fed Business Inflation Expectations and the Housing Market Index while Thursday reports on tap are CPI, Housing Starts, Weekly Jobless Claims and the Philadelphia Fed Business Outlook Index. The week wraps up with Leading Indicators and the Kansas City Fed Manufacturing readings.

Overseas markets will still potentially be reacting to the US elections and how markets greet each piece of economic updates here. China’s economic situation could also move back into focus after being overshadowed this week by the US elections.

There is no shortage of Fed voices for markets to mull in the week ahead. Key will be Fed Chairwoman Janet Yellen’s testimony Thursday to a joint committee.

Other Fed speakers. Monday will see remarks from Dallas Fed’s Kaplan (2017 voter), Richmond Fed’s Lacker (2018 voter) and San Francisco Fed’s Williams (2018 voter). Tuesday remarks on are tap from Boston Fed’s Rosengren (2016 voter) and Fed Vice Chair Fischer with Wednesday appearances from 2017 voters Minneapolis Fed’s Kashkari and Philadelphia Fed’s Harker. On Thursday, New York Fed’s Dudley (always a voter) and Chicago Fed’s Evans (2017 voter) with remarks from St Louis Fed’s Bullard (2016 voter) and Dallas Fed’s Kaplan. Key will be if those speakers echo what Evans and Williams said following the elections – that the prospects are still in place for a rate hike ahead and whether they view the elections as potentially signaling an end to gridlock in Washington, something other Fed officials – including Fed Chairwoman Yellen – have commented on before relative to US fiscal policy. Markets will pay close attention to how these various officials sum up the potential for US Fed policy ahead.

Agricultural market attention will shift back to exports as traders have mostly digested the USDA data showing bigger corn and soybean crops. The Monday Grain Inspections data and Thursday Weekly Export Sales updates will be the main focal points there along with any daily sales announcements. Traders will also want to see if the winter wheat condition ratings have shifted any over the past week and how close corn and soybean harvests are to being wrapped up for the season.

Other reports ahead. The week includes updates from USDA’s Economic Research Service on Livestock, Dairy & Poultry and Sugar and Sweeteners. The week will close out with the monthly Cattle on Feed report where placements probably will be the main attention point. Beyond that, any updates on crop prospects in South America could get market attention as well.

NOTE: This column is copyrighted material; therefore reproduction or retransmission is prohibited under U.S. copyright laws.