Friday's markets could be subdued after Wednesday's pre-Thanksgiving rally.
Stocks Wednesday rose, with the Dow gaining 247 points or 2.9 percent to 8726. The S&P 500 jumped 30, or 3.5 percent to 887, and the Nasdaq was up 67 points or 4.6 percent at 1532. The gains give the Dow its best four day performance since 1932.
Traders said the multiple days of stock market gains, the longest winning streak since April, was a sign of encouragement. They expect Friday to be a light volume day ahead of the early 1 p.m. close.
For the month of November, the Dow is down 6.4 percent so far, its third straight monthly decline. Its 24 percent three month decline is the worst since 1987 when it fell 31 percent. The Nasdaq is down nearly 11 percent for the month, as of Wednesday, and the S&P 500 was down 8.4 percent.
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Energy stocks were the best performers Wednesday, rising 5.7 percent. The financial sector rose 4.8 percent, giving it a 28 percent gain for the week so far.
Douglas Cliggott, chief investment officer of Dover Management, is one who is not ready to call a bottom for the financial sector. He said he expects to see the government impose a lot of restrictions on the financial companies it has invested billions of dollars in. He said the perimeters of that oversight have not yet been defined.
Cliggott, in an interview after his appearance on "Squawk Box" Wednesday, also said the financials have yet to take their hits from the economic downturn, and he also expects to see a decline in profitability at the firms.
As far as stocks in general, he said he is investing defensively in consumer staples and health care and is taking smaller positions than he has in the past.
"My best guess is we finish the year around where we are now. I don't think the lows are in," he said. "I think the market is very comfortable with the idea that the data flow is going to get worse." He also expects earnings and economic data to look awful in the first half of 2009. "I think the market will trade lower on that."
He said the big question is what the fiscal stimulus package looks like, as it could be a major factor for the economy and stocks.