Expect a Wild Session as Wall Street Opens: Pro

As Wall Street prepares to re-open for business on Wednesday, investors should prepare for a "wild session" before earnings reports could subdue the markets again, Michael Yoshikami, founder & chief executive of Destination Wealth Management, told CNBC.

Outside the New York Stock Exchange in lower Manhattan.
Oliver Quillia | CNBC
Outside the New York Stock Exchange in lower Manhattan.

After two days of closures for Wall Street as Superstorm Sandy wrought havoc, U.S. stock exchanges are preparing to re-open on Wednesday — the last day of trading in November when traders and fund managers assess stocks and value holdings for investor and regulator reports.

"It should be a wild session," Yoshikami told CNBC Europe's "Squawk Box"."It'll be interesting to see what the volume is like but I expect significant volatility."

"Fortunately we have earnings postponed by a number of companies until Thursday or Friday but it should be a wild session."

Despite extensive flooding in New York affecting transport into the city, Wall Street experts told Reuters on Tuesday that there could be a dangerous back up in customer orders and damage done to confidence in the U.S. markets if they remained shut.

Confidence has already been hit in recent months because of trading glitches, a botched Facebook IPO and inexplicable market swings.

Speaking to CNBC from San Francisco, Yoshikami said that investors should expect "a down day in the market" on Wednesday.

"[However] after Wednesday passes then it's going to revert back to the same-old-story that it was a week ago which is what earnings numbers will look like — and that's anybody's guess on Thursday and Friday."

U.S. earnings have so far failed to meet expectations, with unforeseen misses from seemingly fail-safe giants such as Amazon and Apple.

A number of companies will report on Wednesday, but many have moved earnings releases to Thursday, Arch Capital, Automatic Data nd Avon Products among them. Hess, Dendreon and McGraw Hill are just some of the companies that have delayed earnings reports until Friday.

(Read More: Companies Delay Earnings Reports)

"So far, two-thirds of companies have been short on the revenue side, so earnings will put pressure on the markets as well later this week," Yoshikami added.

The Calm After the Superstorm?

Sandy might have left 6 million people and caused billions of dollars in damage, but it might not be totally negative for the market, according to some.

Simon Derrick, chief currency strategist at BNY Mellon told CNBC that, as with other natural disasters, markets can maintain momentum on the risk-on trade, in spite of the storm's damage.

"You look at events over the last few days and clearly initially there will be a drag on the economy but look back at disasters of the past…and construction spending [afterwards] has been a huge positive over time."

(Read More: Potential Economic Boost From Sandy)

"You start to wonder whether, given the fact that you have a mild recovery already taking place in the U.S. whether actually the net impact of this, as construction spending starts to kick in, is a mild positive."

However, he added that this would not detract from the huge social, economic and infrastructure disaster that Sandy has caused.

Clearly, you've got to put it into the perspective of [the fact that] this has been a huge disaster. You can't forget that."