| Stocks Mixed As Market Cheers Reopening, But Braces For Ugly Employment Report  Image: Bigstock Stocks closed mostly lower yesterday with the Dow and the S&P finishing in the red. But the Nasdaq finished in the green, extending their winning streak to 3 days in a row.
Traders continue to focus on the reopening of the country. As of now, 24 states are slated to begin opening their economies in some shape or form this week (making up roughly 35% of the economy).
The main areas of interest will be seeing if there are any hot spots or flare ups after businesses reopen. And also, how many people are visiting these newly reopened establishments. Since social distancing is requiring stores to operate at reduced capacity (fewer people in stores at any one time), how much business are these stores able to do?
Earnings are also a focus for traders. And they haven't been that bad, all things considered.
But the market is bracing for tomorrow's Employment Situation report. Although, I don't think it's that important. We all know it's going to be ugly with an expected -21,250,000 unemployed, and a 16.3% unemployment rate. But that's all rearview mirror stuff.
Nonetheless, it will grab a lot of headlines. And some will likely be spooked by it.
But as I've said before, the market is forward looking.
And since the worst of the outbreak is behind us, and was far less severe than had been predicted, the lockdown has therefore been shorter, and getting on the road to recovery has come faster.
The more interesting reports will come next month and the months after that, as they will reflect the businesses that have reopened, those that have not, and those that have closed for good. That will give a truer sense of the damage the pandemic has wreaked on our economy.
Will the number of unemployed be cut in half next month? Or trimmed by just 25%? What capacity are these stores operating at? Are they expecting that to increase? By how much and how fast? Where are all the states in their phased reopening?
The important data won't come for at least another month or two.
In the meantime, the market has a pretty good idea who some of the winners and losers will be.
Some are obvious. Some less so.
But there will be new businesses and industries that emerge as well.
Because this virus outbreak, and the upheavals it's brought about for businesses and consumers, will change large portions of our economy. Things won't necessarily go back to normal, but instead, a new normal. And the companies that can adapt will thrive and become new market leaders. While those that can't will suffer. To learn how to determine which is which, be sure to read our latest commentary...
3 Questions for Investing in the "New Normal"
Best, 
Kevin Matras Executive Vice President, Zacks Investment Research | | Sponsor 5 Stocks Poised to Soar Past the Pandemic
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