Stock market updates: S&P 500 rises to a fresh record closing huge

Stocks ended higher on Friday, with the S&P 500 and Nasdaq closing out the session at record levels.

The S&P 500 and Nasdaq each rose aproximatelly 0.5 %, while the Dow finished just a tick above the flatline. U.S. stocks shook off earlier declines after tracking a drop in overseas equities, after new data showed that UK gross domestic product (GDP) slumped by a report 9.9 % in 2020 as a virus induced recession swept the nation.

Shares of Dow component Disney (DIS) reversed earlier gains to fall greater than 1 % and take back from a record high, after the company posted a surprise quarterly profit and grew Disney+ streaming prospects much more than expected. Newly public business Bumble (BMBL), which began trading on the Nasdaq on Thursday, rose another seven % after jumping sixty three % in the public debut of its.

Over the past couple weeks, investors have absorbed a bevy of stronger than expected earnings benefits, with company earnings rebounding way quicker than expected despite the ongoing pandemic. With at least eighty % of businesses now having reported fourth-quarter results, S&P 500 earnings per share (EPS) have topped estimates by seventeen % in aggregate, and bounced back above pre-COVID amounts, according to an analysis by Credit Suisse analyst Jonathan Golub.

generous government action and “Prompt mitigated the [virus-related] damage, leading to outsized economic and earnings surprises,” Golub said. “The earnings recovery has been considerably more robust than we might have dreamed when the pandemic first took hold.”

Stocks have continued to set new record highs against this backdrop, and as fiscal and monetary policy assistance stay strong. But as investors become comfortable with firming corporate performance, companies might have to top even greater expectations to be rewarded. This may in turn put some pressure on the broader market in the near-term, and warrant more astute assessments of specific stocks, based on some strategists.

“It is no secret that S&P 500 performance continues to be quite powerful over the past few calendar years, driven largely via valuation development. But, with the index P/E [price-to-earnings ratio] recently eclipsing its prior dot-com extremely high, we believe that valuation multiples will start to compress in the coming months,” BMO Capital Markets strategist Brian Belski wrote in a note Thursday. “According to our work, strong EPS growth is going to be important for the following leg greater. Fortunately, that’s precisely what existing expectations are forecasting. However, we additionally found that these sorts of’ EPS-driven’ periods tend to be challenging from an investment strategy standpoint.”

“We assume that the’ easy money days’ are actually more than for the time being and investors will have to tighten up their focus by evaluating the merits of specific stocks, instead of chasing the momentum-laden strategies who have recently dominated the expense landscape,” he added.

4:00 p.m. ET: Stocks end higher, S&P 500 and Nasdaq reach report closing highs
Here is where the key stock indexes finished the session:

S&P 500 (GSPC): +18.55 points (+0.47 %) to 3,934.93

Dow (DJI): +27.44 points (+0.09 %) to 31,458.14

Nasdaq (IXIC): +69.70 points (+0.5 %) to 14,095.47

2:58 p.m. ET:’ Climate change’ is the most-cited Biden policy on company earnings calls: FactSet
Fourth-quarter earnings season marks the first with President Joe Biden in the White House, bringing a new political backdrop for corporations to contemplate.

Biden’s policies around environmental protections and climate change have been the most-cited political issues brought up on company earnings calls up to this point, based on an analysis from FactSet’s John Butters.

“In terms of government policies talked about in conjunction with the Biden administration, climate change as well as energy policy (28), tax policy (twenty COVID-19 and) policy (nineteen) have been cited or maybe reviewed by probably the highest number of companies with this point in time in 2021,” Butters wrote. “Of these 28 firms, seventeen expressed support (or even a willingness to your workplace with) the Biden administration on policies to greatly reduce carbon and greenhouse gas emissions. These 17 companies either discussed initiatives to minimize their very own carbon as well as greenhouse gas emissions or products or services they supply to assist clientele and customers reduce the carbon of theirs and greenhouse gas emissions.”

“However, four businesses also expressed a number of concerns about the executive order establishing a moratorium on new engine oil as well as gas leases on federal lands (plus offshore),” he added.

The list of twenty eight companies discussing climate change as well as energy policy encompassed organizations from a broad array of industries, including JPMorgan Chase, United Airlines Holdings and 3M, alongside traditional oil majors like Chevron.

11:36 a.m. ET: Stocks mixed, S&P 500 and Nasdaq turn positive
Here is in which marketplaces had been trading Friday intraday:

S&P 500 (GSPC): +7.87 points (+0.2 %) to 3,924.25

Dow (DJI): -8.77 points (0.03 %) to 31,421.93

Nasdaq (IXIC): +28.15 points (+0.21 %) to 14,053.77

Crude (CL=F): +$0.65 (+1.12 %) to $58.89 a barrel

Gold (GC=F): +$0.20 (+0.01 %) to $1,827.00 per ounce

10-year Treasury (TNX): +2.7 bps to yield 1.185%

10:15 a.m. ET: Consumer sentiment suddenly plunges to a six-month low in February: U. Michigan
U.S. consumer sentiment slid to probably the lowest level after August in February, based on the Faculty of Michigan’s preliminary once a month survey, as Americans’ assessments of the path forward for the virus-stricken economy suddenly grew much more grim.

The title consumer sentiment index dipped to 76.2 from 79.0 in January, sharply lacking expectations for an increase to 80.9, according to Bloomberg consensus data.

The whole loss of February was “concentrated in the Expectation Index and among households with incomes under $75,000. Households with incomes in the bottom third reported considerable setbacks in the present finances of theirs, with fewer of these households mentioning recent income gains than anytime since 2014,” Richard Curtin chief economist for the university’s Surveys of Consumers, said in a statement.

“Presumably a new round of stimulus payments will bring down financial hardships among those with probably the lowest incomes. A lot more surprising was the finding that consumers, despite the expected passage of a grand stimulus bill, viewed prospects for the national economy less favorably in early February compared to last month,” he added.

9:30 a.m. ET: Stocks open lower, but pace toward posting weekly gains
Here’s in which marketplaces had been trading only after the opening bell:

S&P 500 (GSPC): 8.31 points (-0.21 %) to 3,908.07

Dow (DJI): -19.64 (-0.06 %) to 31,411.06

Nasdaq (IXIC): 53.51 (+0.41 %) to 13,970.45

Crude (CL=F): 1dolar1 0.23 (0.39 %) to $58.01 a barrel

Gold (GC=F): -1dolar1 10.70 (0.59 %) to $1,816.10 per ounce

10-year Treasury (TNX): +3.2 bps to yield 1.19%

9:05 a.m. ET: Equity funds see highest weekly inflows actually as investors pile into tech stocks: Bank of America
Stock funds just saw the largest-ever week of theirs of inflows for the period ended February 10, with inflows totaling a record $58.1 billion, according to Bank of America. Investors pulled a total of $800 million out of gold and $10.6 billion out of money throughout the week, the firm added.

Tech stocks in turn saw the own record week of theirs of inflows at $5.4 billion. U.S. large cap stocks saw their second-largest week of inflows ever at $25.1 billion, and U.S. small cap inflows saw their third-largest week at $5.6 billion.

Bank of America warned that frothiness is rising in markets, nevertheless, as investors keep on piling into stocks amid low interest rates, along with hopes of a strong recovery for the economy and corporate profits. The firm’s proprietary “Bull and Bear Indicator” tracking market sentiment rose to 7.7 from 7.5, nearing an 8.0 “sell” signal.

7:14 a.m. ET Friday: Stock futures point to a lower open
The following were the principle movements in markets, as of 7:16 a.m. ET Friday:

S&P 500 futures (ES=F): 3,904.00, down 8.00 points or perhaps 0.2%

Dow futures (YM=F): 31,305.00, down 54 points or 0.17%

Nasdaq futures (NQ=F): 13,711.25, printed 17.75 points or even 0.13%

Crude (CL=F): 1dolar1 0.43 (-0.74 %) to $57.81 a barrel

Gold (GC=F): -1dolar1 9.50 (-0.52 %) to $1,817.30 per ounce

10-year Treasury (TNX): +0.5 bps to yield 1.163%

6:03 p.m. ET Thursday: Stock futures tick higher
Here’s where marketplaces had been trading Thursday as overnight trading kicked off:

S&P 500 futures (ES=F): 3,904.50, down 7.5 points or even 0.19%

Dow futures (YM=F): 31,327.00, down thirty two points or perhaps 0.1%

Nasdaq futures (NQ=F): 13,703.5, printed 25.5 points or even 0.19%