Stocks rose in volatile trading Monday as Wall Street cheered news on Boeing and traders shrugged off the latest surge in coronavirus cases.
Three experts break down the reasons behind Monday's market action and what to watch now.
Jim Cramer, host of CNBC's "Mad Money," is optimistic on Boeing and its 737 Max tests.
"I feel that the 737 [Max] is going to be the most tested plane in history. And yet ... Phil [LeBeau] was saying it could be a long time before we're actually in it. Before the pandemic and before the change in CEO at Boeing, I said I was willing to take a film crew and be the first people on. And, you know, my wife really quite candidly said I'm the biggest moron in history, but I think it's safe by now."
Yana Barton, portfolio manager at Eaton Vance Management, says expectations may be too elevated.
"So much of it is still dependent on a vaccine, and therefore it's driving a lot of the sentiment and the outlook for the market. That being said, I think it's fair to say that the market has recovered quite a bit from the February/March trough levels and we're sitting at a level now where you have to make some assumptions into 2021, which is becoming a little murky and most would suspect that the earnings are still a little too high."
Bruce Bittles, chief investment strategist at Baird, says markets still have a rough road ahead.
"I think the investor has to expect we're going to have a rocky go of it here. I mean, we've never experienced a total shutdown of the economy before, so we open the economy, it can be much more difficult, but nevertheless ... I think the markets just simply got too far ahead of themselves in early June ... and expectations for the market and the economy just got too elevated."
