| Stocks Up As The Economy Begins To Reopen  Image: Bigstock Stocks closed higher yesterday, erasing early morning losses.
Stocks were under pressure early on as profit taking from Friday's session carried over, and concerns over possible new tariffs on China, in an effort to make them pay for their coronavirus failures, weighed on prices.
But with 23 states opening their economies in some shape or form this week (making up roughly 35% of the economy), traders looked to the future as the U.S. begins to reopen for business.
You can be sure that any hot spots and difficulties during the reopening will be magnified. But we all know there will be problems. That's just life. The key is how many problems there are, how those problems are dealt with, and what kind of setback will that cause for the area?
Likewise, the successes will be celebrated. And those will give us an idea as to how quickly states can move from one phase to the next, and the next.
One thing people are already talking about is Friday's upcoming Employment Situation report. It's expected to be ugly. The ugliest ever with -21,250,000 unemployed, and a 16.3% unemployment rate. But that's all rearview mirror stuff. We already know how bad it's going to be by adding up the jobless claims we've gotten over the weeks. So Friday's report should not come as any surprise.
And as I've said before, the market is forward looking. When the market was down -35% in early March, it was likely pricing in that kind of carnage. And probably a lot more.
But the outbreak, as tragic as it's been, has been far less severe than the early dire predictions. And getting on the road to recovery has been much faster.
And since our economy was considered by many to be the strongest economy of our lifetime, there's great hope that we will bounce back in epic fashion as pent-up economic demand is unleashed.
See you tomorrow, 
Kevin Matras Executive Vice President, Zacks Investment Research | Most Popular Articles from Zacks.com | 
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