EDITOR'S NOTE
Stocks are recovering ahead of the economy as investors pin their hopes on science.
CNBC's Tom Franck and Gina Francolla on Monday released a new CNBC Covid-19 Testing and Treatments Index comprised of companies working on some of the most promising treatments. The index tracks the gains of the S&P 500 in lockstep, they report.
“The debate has shifted from how deep the recession will be to how quickly the economy recovers,” Dennis DeBusschere, head of Evercore ISI’s portfolio strategy, wrote in a note on Sunday. “The outlook for economic growth … is increasingly dependent on a cure/treatment for Covid that reduces the risk of rolling lockdowns,” he added.
Stocks rose on Monday as investors parsed the incremental reopening of some state economies amid the ongoing pandemic. New York Gov. Andrew Cuomo said Sunday that the state plans to reopen its economy in phases beginning with the construction and manufacturing sectors around May 15.
Hopes are high, but the S&P's rally from its March lows has not discouraged bearish investors altogether.
“I think a retest of the low is very plausible,” Jeffrey Gundlach, CEO of DoubleLine, said on CNBC’s “Halftime Report.” “People don’t understand the magnitude of ... the social unease at least that’s going to happen when ... 26 million-plus people have lost their job."
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