Then the weather clouded over. That was on Wednesday the eve of the Party. Anxiety was intense. Then Thursday, September the 22n
d, actually dawned. The sun got up, the clouds vanished, flags were unfurled and the fun began. Bilbo Baggins called it a party, but it was really a variety of entertainments rolled into one. Practically everybody living near was invited. A very few were overlooked by accident, but as they turned up all the same, that did not matter.
What do readers learn about the setting in this excerpt?
The key point in this excerpt is that all the members of the community had been anxiously waiting for the party to take place, and that is why there was such concern in regards to the weather. But once the sky cleared up and the sun got up, everybody started to have fun at the party.
The fundamental characteristic of a literary analysis essay is that it is interpretative - if it's an analysis, then you need to interpret that work of literature.