EDITOR'S NOTE

The reopening trade behind an astonishing market comeback was not working out so well this week.

Coronavirus cases rose in more than 30 states, Texas rolled back reopening plans and Florida closed bars, dampening optimism for  a smooth recovery.  The Dow Jones Industrial Average lost more than 700 points on Friday and finished the week with a loss of  3%.

The first half of the year saw an unprecedented shutdown of the U.S. economy, as well as a stock market recovery shaped quite like a V, until recent sessions proving that a W or a series of many jagged peaks and valleys is more realistic.

In the second half of the year, the market will have to prove its thesis of a sharp return to economic growth, writes CNBC's Patti Domm. The first big test will be the June jobs report, out on Thursday. Economists expect 3 million jobs were created as the economy recovered, following May’s surprise gain of 2.5 million.

"The second half needs to be a ‘show me’ period, proving that our optimism was justified," said Sam Stovall, chief investment strategist at CFRA. "We’ll need to see continued improvement in the economic data, and I think we need to see upward revisions to earnings estimates.

Second half performance also depends on continuing fiscal and monetary responses to the pandemic, particularly if a spike in infections, hospitalizations and deaths significantly slows or shuts down parts of the economy, Domm writes.

Michael Santoli writes about the key questions for the stock market entering the second half.  They include, how much more can be expected of the expensive growth-stock goliaths in pushing the indexes forward as investors wait for the recovery to gain traction? Santoli cites a Citi survey that shows investors are still cautious heading into the final six months of the year, with cash levels twice the normal levels.

Thanks for reading Weekend Brief.  Email your thoughts to EveningBrief@nbcuni.com or follow me on Twitter @tellittoal.

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