Stocks: More speedbumps ahead

NEW YORK (CNNMoney.com) -- After a wild ride last week, stocks could be in for a more volatility going into Thanksgiving.

Even though trading is likely to be light during the shortened holiday week, traders say they'll be closely watching a number of key economic reports that could be major market movers on Tuesday and Wednesday

New data is expected to shine some light on the housing market, consumer income and spending, jobs and the growth of the overall economy.

Wall Street also has one eye on the Federal Reserve's stimulus plan and another on instability in Europe -- especially as Ireland is in talks with the International Monetary Fund regarding a bailout for its struggling banking sector.

Some traders are guardedly optimistic that the Fed's $600 billion bond-buying spree will stimulate spending and growth. But the plan, referred to as quantitative easing, has also drawn backlash from others who think it could fuel asset bubbles or runaway inflation.

"The market has had a heck of a run, if you look at it from August to November. A lot of this run has been forced by liquidity, and once that injection of cash stops, I think we are suspect here," said Rich Ilczyszyn, a market strategist with Lind-Waldock.

If the data that comes in the next few days shows the glass is still half empty when it comes to the economy, Ilczyszyn said it could mean stocks take a hit.

"Jobs are still missing in this rally, housing prices are still relatively weak, earnings were better because the bar was so low, and ultimately, there's not a real big reason to buy stocks," he said.

Traders will also keep looking for any clues as to whether the Bush tax cuts will live on, said Cameron Short, senior vice president of investments at Stifel Nicolaus.

"There's substantial thought right now that you're going to see the Bush tax cuts extended," he said. "We would love to know before December 31 so we can take that into account."

Monday: No economic reports are on the agenda.

Tuesday: Before the market opens, the government is scheduled to release its second estimate for third-quarter gross domestic product, the broadest measure of the economy. In October, the government said the economy grew at an annual rate of 2% in the third quarter. Economists expect that rate to be revised to 2.3%.

While an increase would mark an improvement in the economy, it's still considered too weak to create jobs.

Later in the morning, traders will look to a report on existing homes sales from the National Association of Realtors. Economists are expecting the data to show existing home sales climbed for their third month in a row to 4.55 million in October, up from 4.53 million in September.

In the afternoon, the Federal Reserve will release its minutes from its early November meeting, revealing the internal debate between Fed officials regarding their recent decision to initiate a controversial stimulus plan.

Wednesday: The Commerce Department will report the latest data on personal income and spending. After the data showed an unexpected dip in consumer income in September, economists are expecting the report to show income rose by 0.4% in October. Personal spending is also expected to have risen 0.4% during the month, up from a 0.2% increase the month before.

The government will also report the latest data on durable goods, weekly jobless claims and new home sales.

Thursday: Financial markets are closed for Thanksgiving.

Friday: Financial markets are only open for a half day, and trading will be light with many Wall Street pros taking a four-day weekend. Meanwhile all eyes will be on retailers to see how their sales fare on Black Friday.

Initial reports suggest that Black Friday bargains will draw 138 million shoppers to stores this year, up 3% from last year. Because Black Friday is the first shopping day of the critical holiday retail period, it is seen as a key barometer of how the next six weeks will play out.