5 things to know before the stock market opens Monday

Markets turn into a 'classic Santa Claus rally'
Markets turn into a 'classic Santa Claus rally'

1. S&P 500 takes aim at best year since 1997

U.S. stock futures were pointing to a slightly lower Wall Street open on Monday. The Dow Jones Industrial Average and S&P 500 both closed at record highs Friday. Heading into the final two trading days of 2019 and the decade, the S&P 500 was just 0.35 percentage point away from its best annual gain since 1997. The Nasdaq broke an 11-session winning streak Friday, with modest losses after Thursday's first-ever close over 9,000. Year to date, the Nasdaq is up 35.74%, the S&P 500 is up 29.25% and the Dow is up 22.8%.

2. The stock market is expected to have much smaller gains next year

wall street sign with new york stock exchange blured flags as background
Fischerrx6 | iStock | Getty Images

Analysts see the possibility of a slight pullback early next year, but the market is still expected to go higher, with Wall Street firms targeting an average of 3,320 for the S&P 500 by the end of 2020, according to a CNBC survey. Such an advance, representing a 2.4% gain from Friday's record high close, would be less than a tenth of the index's 2019 return. The S&P 500, on average, gained 6.6% in the fourth year of a presidential term when a Republican is seeking reelection.

3. Manufacturing data expected to show continued contraction

A General Motors assembly worker works on assembling a V6 engine, used in a variety of GM cars, trucks and crossovers, at the GM Romulus Powertrain plant in Romulus, Michigan.
Rebecca Cook | Reuters

Several key economic indicators are scheduled to be released on Monday, including the Chicago purchasing manager index. Economists are looking for a December reading of 47.4 compared with 46.3 in November. A reading below 50 is typically seen as a sign of an economic slowdown and contraction in the sector. However, the monthly indicator has only been above 50 once since May, even as the stock market soared and the unemployment rate was hitting half-century lows.

4. Trump retweets alleged name of anonymous whistleblower

U.S President Donald Trump attends the 2019 National Prayer Breakfast on February 7, 2019 in Washington, DC. In his speech Trump assured that his administration will protect religious liberties.
Chris Kleponis / Pool / Getty Images

President Donald Trump retweeted a post including the alleged name of the anonymous whistleblower whose complaint ultimately led to his impeachment by the House. Trump has repeatedly backed efforts to reveal the identity of the whistleblower. But the president's Friday night retweet marks the first time he has directly sent the alleged name out to his 68 million Twitter followers. Unmasking the whistleblower, who works in the intelligence field, could violate federal protection laws that have historically been supported by both parties.

5. Tesla delivers its first China-made Model 3 sedans

The China-built Tesla Model 3 is unveiled at a Tesla store on November 22, 2019 in Shanghai, China.
Zhang Hengwei | China News Service | Visual China Group | Getty Images

Tesla delivered the first Model 3 electric cars built at its Shanghai factory at a Monday event in China. Fifteen Tesla employees there received their sedans, one of whom proposed to his girlfriend after getting his new set of wheels. The Shanghai plant, up and running in just 357 days, is part of Tesla's plans to bolster its presence in the world's biggest auto market and to minimize the impact of the U.S.-China trade war. Shares of Tesla were hovering near their $435.31 all-time highs reached during the trading day Friday.

— The Associated Press and Reuters contributed to this report.