Stocks rang in 2020 on a good note and the gains may bode well for the rest of the year.
 | THU, JAN 02, 2020 | | | | DOW | | NAME | LAST | CHG | %CHG | | AAPL | 300.35 | +6.70 | +2.28% | | MSFT | 160.62 | +2.92 | +1.85% | | INTC | 60.84 | +0.99 | +1.65% | |
| | S&P 500 | | NAME | LAST | CHG | %CHG | | GE | 11.93 | +0.77 | +6.90% | | AMD | 49.10 | +3.24 | +7.07% | | F | 9.42 | +0.12 | +1.29% | |
| | NASDAQ | | NAME | LAST | CHG | %CHG | | AMD | 49.10 | +3.24 | +7.07% | | AAPL | 300.35 | +6.70 | +2.28% | | JD | 37.73 | +2.50 | +7.10% | |
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Stocks were up on the first trading day of the year and those gains may soon compound into a good omen for the rest of the year.
When the S&P 500 is higher during the first five trading days of the year, stocks post gains for the whole year about 82% of the time, according to the Stock Trader's Almanac.
It certainly proved prescient last year, writes CNBC's Yun Li, when the S&P 500 rose 2.7% in the first five days and then went on to score its best year since 2013.  To be sure, history works until it doesn't. The market may be trading around record highs now, but it "feels toppy," says Bank of America Merrill Lynch strategist Savita Subramanian. She warns that the outlook for corporate earnings simply hasn't improved. "Our near-term indicators suggest that markets could have a weak start to the year," Subramanian noted. A weak start can be as bad an omen as a strong start is a good one. The Stock Trader's Almanac also tracks the January barometer, which is accurate about 75% of the time. As the saying goes: "So goes January, so goes the year." Subscribe to CNBC PRO for exclusive insights and analysis, and live business day programming from around the world. |
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