Listen: The stock market, left for dead in December, is racing back to life
"December stock market moves were not for the faint of heart. The Dow Jones industrial average moving upper down nearly a thousand points and some days, but could be some good news coming for investors. As we start the new year and Wall Street Journal markets reporter just commencement is here to explain suggest a in the fourth quarter. The market's really didn't fall in line with respect to history case in point. There was no Santa Claus rally. But typically January it's strong month for stocks and things seem to be lining up for that to ring true this year. So on January fourth we saw quite a big move in the market. The Dow did the day up more than eight hundred points, and that was really driven to the fact that we got a very rope a bust jobs report. And at the same token, Drome Powell the Federal Reserve, chairman came out and said, the fed would be more flexible with its policy, and I think those were comments the market was really looking for. And it was a huge bounce back after the market had over the course of the first. It to trading days was really the markets were start to a year since two thousand also this being the third year. The presidential election cycle has a lot to do with this potentially being an up year as well. January also is typically a very strong month in the markets. And it sort of sets the stage since we are in the what traders and analysts call the pre election year the year before the election typically, the market does perform well, and that's usually because incumbents will implement new policies or push for lower taxes ahead of the election an effort to boost the economy, the only sort of sort of caveat to that is we did see congress cut rates at the end of twenty seventeen in that did filter through into twenty eighteen with a boost to earnings growth when you're looking at companies, especially in the S and P five hundred and you're looking at how well the economy performed versus its peers globally in twenty teen. The questions of is candy. US remain the standout compared to its peers. And by congress cutting rates, you mean the corporate tax rates. Yes. Okay. Now if there's anything that could hold back the market from popping and moving higher. It's this ongoing thing around our necks, which is the trade questions when China there's been so many different narratives that have hung over the markets for the past few months one of which is the ongoing trade tensions as well. As the concerns of slowing global growth, and sort of the Federal Reserve in the uncertainty that there was about whether or not they would be flexible now that the feds come out a few times now with more dovish statements. I think obviously the market has has welcomed that those concerns but over the next ninety days. So officials are meeting this week to discuss trade negotiations with ficials in China, and it's supposed to go on up until the beginning of March. So there could be a situation where there is more clarity. And that could turn some of that uncertainty around the markets, but at the same. Mm sight of that. If there continues to be uncertainty with regard to that situation that could be the driver of what could inhibit the markets for continuing to propel higher. Good news or bad news. The market is not like uncertainty. They just wanna know give it to me straight. Exactly, exactly. But, you know, strategy spoke to for your story. This suggests specific investments for the latter stage of economic expansion which were in right now, something that's interesting. If you're looking at say, some of the most held back stocks, especially in in the last quarter that have been hurt by a lot of these trade tensions. It's industrial stocks. If you're looking at Caterpillar Boeing, those have both lost more than ten percent over the last three months, if you're looking at the later stages of an economic cycle, which people are arguing since we are in the tenth year of the bull market.."