The worlds largest economy prepares to welcome the first new week after the President Barack Obama was reelected again to claim the White House for the next four years. The U.S. calendar is quite busy with first-tier economic fundamentals so markets will likely hold the swing for another hectic week.
Mr. Barack Obama, winning another term in the White House, promised "the best is yet to come" to America. Separately, analysts pointed out the likelihood for maintaining the Feds easy-money policy over the upcoming stage to stimulate economy.
With election now over, spotlights focus on the "fiscal cliff" that will be activated at the beginning of 2013 if the Congress remains at loggerheads on taxes law. This automatic legislation will raise taxes and reduce public spending, perhaps pushing the U.S. economy into contraction.
Fitch, the credit rating agency, had warned of slashing the countrys AAA credit rating if the Congress failed to pass a vote in the U.S. budget and the fiscal cliff being activate next year. Fitch already placed the U.S. rating on a "negative" watch.
Moving to economic deck, the start will be Monday with the Treasurys monthly budget statement, expected to show a budget deficit of 125.0 billion in October, compared with a surplus of 75.02 in September.
The U.S. Commerce Department will follow Tuesday with the Producer Price index, which is expected to rise 0.2 percent in October and 2.7 percent on an annual rate from a year ago.
The Less volatile PPI, which excludes food and fuel prices, is expected to rebound 0.20 percent from a flat estimate. From a year earlier, Core PPI probably rose to 2.5 percent from 2.3 percent.
Sales at U.S. retailers probably dropped 0.1 percent last month. Excluding autos, retail sales likely gained 0.30 percent, down from a 1.14 percent rise in September, while excluding autos and gas, sales probably rose 0.30 percent from 0.90 percent.
The Federal Reserve publishes the minutes of its October 23-24 meeting, where policymakers decided to stay on hold and keep interest rate target at a range of zero to 0.25 percent, Operation Twist continuing through the end of this year.
The central bank held no surprises at their last meeting since launching a third round of quantitative easing in mid-September, thus policymakers are expected to keep rates exceptionally for some time.
Nonetheless, one member of the FOMC had voted against the action, Jeffery M. Lacker, who disagreed with the description of the timeframe over which a highly accommodative stance of monetary policy will remain appropriate.
The Commerce Department will be back Wednesday with the consumer price indexes, which will be closely watched for to see up to which extent the Feds latest monetary easing has strongly influenced the U.S. cost of living so far.
CPI, which tracks the monthly change in prices of a basket of goods and services, probably rose a soft 0.10 percent in October, from 0.60 percent in September. From a year ago, annual inflation growth likely inched higher to 2.10 percent from 2.00 percent.
Manufacturing in New York Region probably continued to deteriorate at a faster pace in November, as businesses suffered horrible damages as a result of Hurricane Sandy that shut U.S. stock trading for two days.
The Federal Reserve Bank of New Yorks factory gauge probably slid to -7.2 in November, from -6.16 in October, as business conditions likely continued to deteriorate for a fourth consecutive month.
This could be the first four-month string of negative readings in the Empire State index since the summer of 2011m as manufacturing suffers a slowdown in global demand and uncertainty over so called "fiscal cliff".
Unemployment rate in the U.S. remains elevated although rates fell unexpectedly in September but jumped again In October 7.9 percent from 7.8 percent to. The U.S. Department of Labor will probably show on Thursday that jobless claims rose 370 thousand last week.
The Federal Reserve Bank of Philadelphias manufacturing gauge could also show that business outlook remains vague, slipping to notch reading of 2 in October from 5.7 a month ago.
The U.S. Department of the Treasury reports the TIC flows for September on Friday, where the report tracks the flows of financial instruments into and out of the U.S. these instruments include Treasury securities, agency securities, corporate bonds and corporate equities.
Finally, the Federal Reserves monthly index of industrial production probably rose 0.2 percent in October, following a 0.4 percent gain in September, with capacity utilization index expected to holds grounds at 78.3 percent, signaling expansion could lose more momentum into the fourth quarter.