This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

The Coming Week: Santa Setup

In past years, the week before Christmas has generally been kind to stocks.

But for the historical trend to play out this year, analysts say, oil prices must remain steady and health care stocks need to stabilize after Pfizer's (PFE) recent nose dive.

A smattering of earnings and handful of economic reports are also likely to provide some direction in what is expected to be a quiet week of trade. The markets will be closed Friday for the Christmas holiday.

"Historically, the week before and after Christmas tend to have an upward bias," said Art Hogan, chief market analyst at Jefferies & Co. "In fact, if you go back over the last 45 years, that week is up 80% of the time."

Hogan said he expects the week to be defined by low volume, however, with activity slowing down sharply by Wednesday.

Last week, stocks rose, with the Dow up 1% and the S&P 500 up 0.5%. At the same time, oil prices surged as forecasters called for below-normal temperatures across the country through the end of December. Nymex crude futures jumped more than $2 Friday to $46.28 a barrel.

"If oil goes back up to $50 a barrel, alarm bells will start to go off again," said Hogan.

Investors will also be paying close attention to developments in the drug sector. On Friday, Pfizer plunged 11%, weighing heavily on the Dow, after saying that its arthritis drug Celebrex posed "increased cardiovascular risk" when used in high doses. The Amex Pharmaceutical Index shed 3%.

Peter Cardillo, chief market strategist at S.W. Bach, doesn't expect another sharp selloff in the sector next week. In fact, he said investors could be tempted to do some bargain-hunting, helping to drive stocks higher.

"I think the market can continue to inch up," he said. "But it's obviously going to be a rather slow week."
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
GIS $56.52 0.96%
AAPL $93.83 0.14%
FB $102.12 0.21%
GOOG $683.99 0.13%
TSLA $149.24 -0.82%


Chart of I:DJI
DOW 15,890.05 +229.87 1.47%
S&P 500 1,854.50 +25.42 1.39%
NASDAQ 4,313.3520 +46.5150 1.09%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs