BOSTON (Reuters) – Investors could see a final boost to Wall Street shares in the final session of the year, but they do not expect profits to offset losses in the worst December since the 1930's.
Traders work on the New York Stock Exchange (NYSE) floor in New York, USA, on December 28, 2018. REUTERS / Jeenah Moon
"I think there is the possibility that the market can be concentrated at the end of the year," said Jake Dollarhide, executive director of Longbow Asset Management in Tulsa, Oklahoma.
The potential of positive news about a trade dispute with China and the anticipation of subsequent comments by the Federal Reserve president Jerome Powell could raise the market, Dollarhide said. However, no matter how strong any potential concentration is, it is expected that market discomfort will continue.
"When it begins to pass the month of December and it is the worst December since the Great Depression, it leaves a very strong lasting picture in terms of bad work," Dollarhide said. "It can not be avoided, no matter how much we will meet tomorrow."
Last week began the worst fall of Christmas night on Wall Street, and pushed the S & P 500 into a whiteboard market territory. In general, the world index of MSCI, the S & P 500, the Dow and the Nasdaq are heading to their worst years since the financial crisis of 2008.
While consumer spending data has been strong, homeowner data has not been and the market has been in the midst of the political instability and shutdown of the US government.
"It's a pretty unclear day on Monday … so I do not think the expectations of fireworks are too high," said Rick Meckler, associate, Cherry Lane Investments in New Vernon, New Jersey. "I think that now it is seeing a good balance between the buyers who arrive at the market and provide a more solid base and the potential of a little further on."
US President Donald Trump has suggested that he has advanced in a trade dispute with China, which could increase stocks, said Meckler. In addition, the good consumption data of Christmas spending could support the market.
But after the violent changes this month, it is expected that the last day of the trade is relatively silent. Few companies make great calls the last day of the year, and it is expected that commercial volumes are light.
The disappointing economic data on Friday was tightened with caution, including the retardant industrial production of Japan and retail sales, the decline in German inflation and US November data showing contracts to buy earlier property homes fell unexpectedly
By breaking down the bad news, the Chicago Purchasing Management Index went ahead to the consensus.
Major indices moved and left on positive territory on Friday, with Dow and S & P finishing modestly low, while the Nasdaq earned a slight gain.
"I think Friday closing should be very positive for the bulls," said Oliver Pursche, a member of the Bruderman Asset Management board. But despite the recovery of significant losses in the session, Pursche said that investors should be cautious in January. "Investors should wait for movements to continue rising up and down."