Stock market live updates: S&P 500 rises to a fresh history closing high

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 %, even though the Dow ended simply 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 record 9.9 % in 2020 as a virus-induced recession swept the country.

Shares of Dow component Disney (DIS) reversed earlier benefits to fall more than one % and take back out of a record high, after the company posted a surprise quarterly profit and cultivated Disney+ streaming prospects much more than expected. Newly public organization Bumble (BMBL), which started trading on the Nasdaq on Thursday, rose another 7 % after jumping sixty three % in the public debut of its.

Over the past couple weeks, investors have absorbed a bevy of much stronger than expected earnings benefits, with company profits rebounding much faster than expected inspite of the continuous pandemic. With at least 80 % of companies now having claimed 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 activity and “Prompt mitigated the [virus related] injury, leading to outsized economic and earnings surprises,” Golub said. “The earnings recovery has been substantially more powerful than we could have thought possible when the pandemic first took hold.”

Stocks have continued to set up fresh record highs against this backdrop, and as monetary and fiscal policy assistance remain strong. But as investors come to be accustomed to 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 also warrant more astute assessments of individual stocks, according to some strategists.

“It is actually no secret that S&P 500 performance has been very strong over the past few calendar years, driven mostly via valuation development. But, with the index P/E [price-to-earnings ratio] recently eclipsing its previous dot-com 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 job, strong EPS growth is going to be required for the next leg higher. Fortunately, that is exactly what present expectations are forecasting. Nevertheless, we also realized that these types of’ EPS-driven’ periods tend to be more tricky from an investment strategy standpoint.”

“We believe that the’ easy money days’ are actually more than for the time being and investors will need to tighten up their aim by evaluating the merits of specific stocks, rather than chasing the momentum-laden practices who have recently dominated the investment landscape,” he added.

4:00 p.m. ET: Stocks end higher, S&P 500 and Nasdaq reach report closing highs
Here’s where the major 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’ would be the most-cited Biden policy on corporate 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 climate change as well as environmental protections have been the most-cited political issues brought up on company earnings calls up to this point, according to an analysis from FactSet’s John Butters.

“In terms of government policies mentioned in conjunction with the Biden administration, climate change as well as energy policy (twenty eight), tax policy (20 COVID-19 and) policy (nineteen) have been cited or perhaps talked about by the highest number of businesses with this point in time in 2021,” Butters wrote. “Of these twenty eight firms, 17 expressed support (or perhaps a willingness to the office with) the Biden administration on policies to reduce carbon as well as greenhouse gas emissions. These 17 companies both discussed initiatives to reduce their very own carbon as well as greenhouse gas emissions or maybe services or products they provide to support customers & customers lower their carbon and greenhouse gas emissions.”

“However, four companies also expressed some concerns about the executive order setting up a moratorium on new oil as well as gas leases on federal lands (plus offshore),” he added.

The list of 28 companies discussing climate change as well as energy policy encompassed businesses from a diverse array of industries, including JPMorgan Chase, United Airlines Holdings and 3M, alongside traditional oil majors as Chevron.

11:36 a.m. ET: Stocks mixed, S&P 500 and Nasdaq turn positive
Here’s in which marketplaces were 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 unexpectedly plunges to a six-month lower in February: U. Michigan
U.S. consumer sentiment slid to probably the lowest level since August in February, according to the Faculty of Michigan’s preliminary month to month survey, as Americans’ assessments of the path ahead 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 missing expectations for an increase to 80.9, according to Bloomberg consensus data.

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

“Presumably a new round of stimulus payments will lessen fiscal hardships with those with probably the lowest incomes. More surprising was the finding that customers, despite the likely passage of a massive stimulus bill, viewed prospects for the national economy less favorably in early February compared to more month,” he added.

9:30 a.m. ET: Stocks open lower, but pace toward posting weekly gains
Here’s where markets 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 deliver 1.19%

9:05 a.m. ET: Equity funds see highest weekly inflows ever as investors pile into tech stocks: Bank of America
Stock cash simply saw the largest ever week of theirs of inflows for the period ended February 10, with inflows totaling a record $58.1 billion, based on 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 during $5.4 billion. U.S. large cap stocks saw their second-largest week of inflows ever at $25.1 billion, and U.S. smaller cap inflows saw their third-largest week at $5.6 billion.

Bank of America warned that frothiness is actually rising in markets, nevertheless, as investors keep piling into stocks amid low interest rates, and hopes of a good recovery for the economy and corporate profits. The firm’s proprietary “Bull and Bear Indicator” monitoring 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
Here were the principle actions in markets, as of 7:16 a.m. ET Friday:

S&P 500 futures (ES=F): 3,904.00, down 8.00 points or even 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 deliver 1.163%

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

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

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

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

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