The dollar was mixed against other major currencies, while gold prices fell. Light, sweet crude rose $1.74 to settle at $46.34 a barrel on the New York Mercantile Exchange.

Thorne contends 2009 could be a strong year for Wall Street because most investors are so shaken from the sell-off in 2008, which erased six years of gains in stocks. Market bottoms often emerge because investors are so pessimistic or because stocks seem incapable of making any sustained recovery.

"A bottom isn't formed in one day or even in one month but probably over several months," he said. "Expectations are extremely low for the economy, for corporate earnings and for the stock market itself."

Since hitting multiyear lows on Nov. 20, the Dow has advanced 19.6 percent, while the S&P 500 is up 23.8 percent.

"We're very confident that the $9 trillion that is in cash right now will look to find a home in better-performing assets," he said, referring to the amount of money invested in conservative but low-yielding areas like money market funds. Yields on safe investments like Treasurys have fallen to virtually nil as investors have clamored for safety and surrendered hopes of even earning a return on their money.

Next week brings a flurry of economic readings and potentially early comments from companies on their 2008 results and 2009 forecasts.

Traders will be anxiously awaiting a Labor Department report next Friday on December employment. A month ago, Wall Street showed newfound resiliency in the face of a bad reading on what is typically the most important economic report of the month. Stocks initially sagged but finished with big gains Dec. 5 after the government reported that employers slashed a larger-than-expected 533,000 jobs in November. Investors were hoping the report would prompt Washington to take broader steps to shore up the economy.

... contd.