December Stock Market Trends

Good morning. We're set for a relatively slow start this morning following mixed overseas markets and a snowstorm in the Northeast. Premarket futures have been volatile throughout the morning and currently point toward a mixed open.

There's a lot of noise out there this morning in the credit markets concerning SIVs, CDOs, and E Trade Financial Corp (ETFC). In addition with lower oil prices, we also have some M&A activity in Activision (ATVI) and more Fedspeak from Rosengren who sees growth "well below potential" for the next two quarters. Along with Yellen later today, Henry Paulson will speak about the housing and subprime at 10:30AM. We also have the ISM Manufacturing Index at 10:AM and motor vehicle sales at 4:PM.

Premarket gainers: ATVI, BE, STEM, UAPH, SNTS, ONT, AMPL, ERTS, STEM, IBM, CNTF, SNCR, SXE, TTWO, SLT, VDSI, MTL, SNDA, DBTK, NFLX, NINE, DLB, XMSR, and FRPT.

Premarket losers: ETFC, PRKR, RIMM, PAY, UFS, GNW, IVZ, EBAY, ACGY, and AMGN.

According to Stock Trader's Almanac December is the #2 best month of the year for the market. Since 1950, the Dow's average gain is +1.7% and there have been only two down Decembers in the last 14 pre-election years. CXO provides this calendar to show how the month tends to perform - i.e. a strong start, some weakness, and then strength around the holidays:

With the Fed meeting on Tuesday, December 11th, this week will very much be spent on debating what the Fed will do next week as well as how the economy is holding up now (i.e. credit crunch) and what affect the Fed will have on the economy in the 4th quarter. Oil prices will also remain in focus with an OPEC meeting this week. Have a great day!