MENU MARKETS BUSINESS NEWS INVESTING TECH POLITICS CNBC TV 

VIDEOS TRADER BIOS COMMENTARY

New chart suggests stocks

won't stage a year-end rally 
 Stephanie Landsman | @stephlandsman
Published 6:52 PM ET Sat, 1 Dec 2018



TRADING NATION
 Stocks get a new reason to rally, Wall
Street bull Art Hogan says
WE’RE NOT ABLE TO PLAY THIS VIDEO IF AN AD BLOCKER B. Riley FBR's Art Hogan says investors can stop
IS ENABLED. worrying about a major obstacle blocking a
year-end rally. 
Please disable your ad blocker on CNBC and reload the
page investor
to start the video.
Negative sentiment to As casino stocks surge, one analyst bets

 overwhelm strong seasonal trends,

Nick Colas warns  
3:56 PM ET Fri, 30 Nov 2018 | 02:01
that the rally is just getting started 
Casino stocks start the week on a roll. One
analyst wagers this is the beginning of a bigger
move for two of those gambling stocks.   

Caterpillar is not the way to play US-

DataTrek Research is out with a chart suggesting stocks will struggle
China trade truce: Oppenheimer
this month — pouring cold water on the likelihood of a "Santa Claus" Caterpillar just got a big bump from easing trade
rally that traditionally boosts stocks in December. tensions between the U.S. and China, but one
technical analyst says this is not the stock to
play any relief.  
According to the firm's co-founder Nicholas Colas, it comes down to
a breakdown in earnings trends and investor sentiment. He said the These two online retailers are blowing
earnings picture is dramatically souring due to risks stemming from Amazon out of the water
China tariff costs to accelerating wage growth. Web 2.0 stocks are blasting higher on Monday.
One analyst says there are two factors that are
giving rise to these second-generation tech
"They filter through to fundamentals," he said Friday on CNBC's names.

"Trading Nation." "The minute the global economy started to roll

over, earnings revisions began to roll over, and that's the period were
in now." MORE FROM TRADING NATION

Colas mapped out his thesis in a chart showing earnings revisions' Under Armour is on a hot streak, and charts point to
more upside
impact on stocks.
A chart suggests that a 'Santa Claus rally' is not coming
to Wall Street this year
One corner of the market is quietly making new highs
Twitter has lost a third of value since June high, but one
technician is buying the dip  
Dow snaps 3-day winning streak on trade worries
Is Wall Street still too bullish on FAANG? Some say so
This 'elephant in the room' could slam stocks, Wall
Street bear David Rosenberg warns
An under-the-radar market move could be pointing to a
broader rally
Lessons from the 'Nifty Fifty' in the 1970s could be
applied to the FANG trade today
Four tariff-proof stocks to weather rising China-U.S.
tensions

VIDEOS ›
In the beginning of the year, estimates pointed to a strong fourth
Wall Street can stop worrying about
quarter, and the S&P 500 Index rallied 9.4 percent from January 1 trade as headwind to gains: Art
to October 1.  Hogan  
"We've got a path to finding an exit on the trade
war highway,” B. Riley FBR’s Art Hogan says
However, just as the correction was getting underway in October, a
change happened. Earnings revisions dipped into negative territory,
Wall Street bull Art Hogan sees
and the S&P fell 5.7 percent.
trade truce as catalyst for year-end
 rally  
During the first three quarters of 2018, "we had 20-25 percent B. Riley FBR’s Art Hogan gives his bullish case
earnings growth," he said. The current quarter "is going to be more for stocks.

like 13 to 14 percent, and next year is going to be more like 5 to 6

percent even though analysts still expect 8 to 9 percent," Colas said. Trading Nation: Time to gamble on
casino stocks?  
"The worry that we have is you're going to see continued earnings
 Ari Wald, Oppenheimer, and Boris Schlossberg,
BK Asset Management, discuss casino stocks.
revisions to the downside not just for Q4, but for 2019 as a whole,"
the analyst added.

It's an ominous sign during a season known to be strong for stocks, TRADER BIOS ›
according to Colas. Yet, he suggests, it's not just any year. Stacey Gilbert
Stacey Gilbert is the head of derivative strategy
at Susquehanna.
"That gives the market some pause about valuation and future
earnings growth, and creates the volatility that we've seen and
should continue to see," Colas said. "We do have deteriorating Lawrence McDonald
Managing Director, ACG Analytics
fundamentals."

Rich Ross
Managing Director, Head of Technical Analysis,
Evercore ISI

TRENDING NOW

1. Dow plunges nearly

800 points on rising
This chart suggests stocks won’t

fears of an economic
stage a year-end rally   slowdown
3:53 PM ET Fri, 30 Nov 2018 | 04:02

2. Bank stocks fall the

most in more than a
Disclaimer year, enter bear
market

Stephanie Landsman 3. The same bond

market move
Producer, CNBC’s "Fast Money"
happening now
occurred before the
last three recessions

RELATED SECURITIES
4. Burger King sells
Whoppers for a
Symbol Price   Change %Change
penny at McDonald's
S&P 500 2700.07 -90.30 -3.24% locations to promote
  its app 

5. Utility stocks soar to

highest levels in a
year as investors rush
to safe havens 

      

Independent Programming Subscribe to CNBC PRO Licensing & Reprints News Tips  CNBC Newsletters
Join the CNBC Panel Advertise With Us Closed Captioning Got a confidential news tip? We want to hear Sign up for free newsletters and get more CNBC
from you. delivered to your inbox
Digital Products Terms of Service Privacy Policy

GET IN TOUCH SIGN UP NOW

News Releases Internships Corrections

About CNBC AdChoices Site Map Get this delivered to your inbox, and more info about our
products and services. Privacy Policy.

Contact Careers Help

© 2018 CNBC LLC. All Rights Reserved. A Division of NBCUniversal

Data is a real-time snapshot *Data is delayed at least 15 minutes. Global Business and Financial News, Stock Quotes, and Market Data and Analysis.

Data also provided by