EDITOR'S NOTE

Thanksgiving is just around the corner, and Wall Street’s top strategists are already looking ahead to 2020. As it stands right now, expectations for the stock market aren’t so hot for the new year.

Strategists are forecasting an average gain of 5% in 2020, CNBC’s Tom Franck writes. That pales in comparison with this year’s 24% rally on the S&P 500. Jonathan Golub of Credit Suisse is the most bullish among his peers, forecasting a 10% gain from current levels in 2020. He cites “abundant” stock buybacks in the new year, lesser headwinds to corporate profits and multiple expansion to justify his optimistic view.

Morgan Stanley’s Michael Wilson and Francois Trahan of UBS, however, both expect the S&P 500 to drop by 3%. Both strategists pointed to disappointing corporate earnings as a possible headwind for stocks in 2020. As far as asset allocation is concerned, Wall Street strategists favor value stocks over growth in 2020, particularly financials, writes Franck.

The overall tepid expectations for the market’s 2020 performance come after stocks struggled this week, with the S&P 500 snapping a six-week winning streak on Friday. Still, the major averages remained near the record highs set recently.

To be sure, stocks have barely budged over the past two weeks, oscillating in a 1% range between 3,090 and 3,122, writes CNBC’s Michael Santoli. This tight trading action, Santoli notes, is similar to what happened in September. Back then, the S&P 500 hovered around 3,000 after rallying 6% in one month. The S&P 500 eventually pulled back 3% before jumping to record highs.

Next week could give investors something to cheer about, as Black Friday kicks off the holiday shopping season. CNBC’s Patti Domm writes holiday season sales are expected to grow by about 4%. The U.S. consumer has been in a strong place for most of the year even as the U.S.-China trade war rages on. But if the season points to a weaker consumer, stocks could be in trouble. 

Subscribe to CNBC PRO for exclusive insights and analysis, and live business day programming from around the world.

MICHAEL SANTOLI'S MARKET COLUMN

THE WEEK AHEAD

YOUR WEEKEND BRIEFING