CNBC’s Jim Cramer said Monday he doesn’t think the stock market will drop in December as it did last year.
“Nothing worries me in the sense of looking for a big sell-off in December,” Cramer said on “Squawk on the Street.”
“I’m seeing ‘green shoots’ in Europe from auto sales,” the “Mad Money” host said, referring to signs of economic recovery in a downturn. European car sales rose 8.6% in October to their highest level since 2009. However, global car sales are expected to see their steepest year-over-year decline since the 2008 financial crisis.
December has historically been the strongest trading month of the year. But 2018 saw the S&P 500 drop more than 9% in the final month. The market, after months of selling, bottomed on Christmas Eve before staging a 2019 rally that could give stocks their best yearly gains in a generation. The S&P 500 closed at a record high on Wednesday.
The S&P 500, as of Friday’s slightly lower close, was up more than 25% this year. Early Monday, the index was on a modest two-session losing streak due to some disappointing economic data and trade concerns.
Manufacturing activity declined in November in the ISM Manufacturing index released Monday. Also Monday, President Donald Trump said he’s restoring tariffs on metal imports from Brazil and Argentina, and Chinese state media reported that Beijing wants Washington to cancel tariffs in order to reach a “phase one” trade deal.
However, Cramer expects this year to end on a stronger note. “I’m looking for more reasons for it to go higher.”