US stocks up on optimism US economy will start to re-open

Optimism that the US economy soon will begin to re-open and encouraging news about the development of a drug to treat the coronavirus lifted stocks on the opening Friday.

In Chicago, a hospital treating severe coronavirus patients with Remdesivir, an anti-viral medicine developed by Gilead Sciences, reported rapid recovery from fever and respiratory symptoms. Most patients were discharged in less than a week, STAT reported.

If safe and effective, the US Food and Drug Administration would likely approve the drug quickly. It would be the first approved treatment for the coronavirus.

Gilead Sciences' stock gained 10.48 percent Friday morning

In early trading, the Dow Jones Industrial Average rose 527.71 points, or 2.27 percent, to 24,071.39. The S&P 500 rose 1.85 percent. The Nasdaq Composite rose 0.88 percent.

The S&P 500 may be poised for its first back-to-back weekly gains since early February. Through the market close Thursday, the S&P was up 0.35 percent and the Nasdaq Composite up 4.65 percent. But the Dow was down 0.70 percent this week on weak performance of major banks.

US President Trump on Thursday announced a three-step plan to re-start the economy based on the extent of the outbreak and conditions in each state.

"We are not opening all at once, but one careful step at a time," he told reporters at the White House. "We must have a working economy and we want to get it back very, very quickly."

The guidelines don't include preset reopening dates. Instead, states are advised to review the data and base their decision on local conditions.

In New York, for example, Governor Andrew Cuomo extended the stay-at-home order another month.

Most New York City residents heed the directive. Subway ridership is down more than 90 percent from pre-outbreak levels. Times Square is empty.

Despite the market's optimism, rising unemployment due to the coronavirus pandemic and lower company earnings are likely to create volatile trading in the weeks ahead.

About 22 million people have filed unemployment claims since the nationwide lockdown began, a record underscoring the extent of the economic damage.

Alphabet, Google's parent, said it plans to slow hiring, an indication that the strongest companies are cautious in the downturn. Investment bank Morgan Stanley said first-quarter profit fell 30 percent.

But Boeing rose 8.91 percent in early trading. On Thursday, the aircraft manufacturer announced it would restart production of commercial aircraft in Washington state next week.

Brent crude oil futures, the benchmark for world prices and a proxy for future economic activity, edged up 0.54 percent to $27.97 a barrel. But futures for West Texas Intermediate crude declined 10.82 percent to $17.72 a barrel, the lowest price since December 2001. At this price, many hydraulic frackers can't operate profitably.

Yield on the 10-year US Treasury bond edged up.