MW: Low trading volume could spell volatility for U.S. stocks
By Kate Gibson, MarketWatch
NEW YORK (MarketWatch) -- Wall Street activity tends to dry up around Thanksgiving and other major holidays, but trading volumes have been especially thin of late, a trend stock market analysts say could translate into year-end volatility.
"What has become quite apparent is that many clients have simply closed up shop for 2009," said Dan Greenhaus, chief economic strategist at Miller Tabak & Co.
Volume during the past four weeks, going back to the start of the month, has been below the 2009 average with volume last week nearly 25% below average, the analyst said.
And, "we have every reason to believe this trend will continue over the remaining five weeks of the year, which should make for some fairly interesting trading days," Greenhaus added.
On Wednesday, a slew of economic data came in mostly better than expected, with materials and consumer discretionary shares up the most.
The Dow Jones Industrial Average (INDU 10,476, +41.87, +0.40%) gained 18.29 points to 10,452.00. The S&P 500 Index (SPX 1,110, +3.96, +0.36%) rose 1.83 points to 1,107.48. The Nasdaq Composite Index (COMP 2,177, +8.16, +0.38%) added 6.01 points to 2,175.19.
