Stock market 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 about 0.5 %, while the Dow finished 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 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 pull back from a record high, after the company posted a surprise quarterly benefit and grew Disney+ streaming prospects much more than expected. Newly public organization Bumble (BMBL), which set about 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 stronger than expected earnings results, with corporate earnings rebounding faster than expected despite the ongoing pandemic. With over eighty % of companies right now having claimed fourth quarter results, S&P 500 earnings per share (EPS) have topped estimates by 17 % in aggregate, and bounced back above pre-COVID levels, according to an analysis by Credit Suisse analyst Jonathan Golub.

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

Stocks have continued to set fresh record highs against this backdrop, and as fiscal and monetary policy support remain robust. But as investors become used to firming corporate performance, businesses could possibly have to top greater expectations in order to be rewarded. This may in turn put some pressure on the broader market in the near term, as well as warrant more astute assessments of specific stocks, based on some strategists.

“It is actually no secret that S&P 500 performance continues to be quite powerful over the past few calendar years, driven mostly via valuation expansion. Nevertheless, 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 the job of ours, strong EPS growth is going to be necessary for the following leg greater. Fortunately, that is precisely what current expectations are forecasting. Nevertheless, we also realized that these kinds of’ EPS-driven’ periods tend to be more tricky from an investment strategy standpoint.”

“We think that the’ easy cash days’ are over for the time being and investors will need to tighten up their aim by evaluating the merits of individual stocks, as opposed to chasing the momentum laden strategies which 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 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’ will be the most cited Biden policy on corporate earnings calls: FactSet
Fourth-quarter earnings season marks the very first with President Joe Biden in the White House, bringing a brand new political backdrop for corporations to contemplate.

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

“In terms of government policies talked about in conjunction with the Biden administration, climate change and energy policy (28), tax policy (20 ) and COVID-19 policy (19) have been cited or perhaps reviewed by the highest number of businesses with this point on time in 2021,” Butters wrote. “Of these 28 companies, seventeen expressed support (or perhaps a willingness to the office with) the Biden administration on policies to reduce carbon and greenhouse gas emissions. These 17 companies possibly discussed initiatives to reduce their very own carbon and greenhouse gas emissions or goods or services they supply to support customers and customers reduce their carbon and greenhouse gas emissions.”

“However, four companies 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 (and also 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 standard oil majors as Chevron.

11:36 a.m. ET: Stocks combined, S&P 500 and Nasdaq turn positive
Here is where 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 deliver 1.185%

10:15 a.m. ET: Consumer sentiment suddenly plunges to a six-month lower in February: U. Michigan
U.S. consumer sentiment slid to probably the lowest level after August in February, according to the University of Michigan’s preliminary once a month survey, as Americans’ assessments of the road ahead for the virus stricken economy suddenly grew more grim.

The headline consumer sentiment index dipped to 76.2 from 79.0 in January, sharply losing out on expectations for an increase to 80.9, according to Bloomberg consensus data.

The entire loss in February was “concentrated in the Expectation Index and involving households with incomes under $75,000. Households with incomes in the bottom third reported major setbacks in their present finances, with fewer of the 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 brand new round of stimulus payments will bring down fiscal hardships among those with probably the lowest incomes. More shocking was the finding that customers, despite the expected passage of a large stimulus bill, viewed prospects for the national economy less favorably in early February than last month,” he added.

9:30 a.m. ET: Stocks open lower, but speed toward posting weekly gains
Here is in which marketplaces were trading simply 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 actually as investors pile into tech stocks: Bank of America
Stock funds just simply saw the largest ever week of theirs of inflows for the period ended February 10, with inflows totaling a record $58.1 billion, as reported by 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 their own record week of inflows during $5.4 billion. U.S. large cap stocks saw the second-largest week of theirs of inflows ever at $25.1 billion, and U.S. tiny cap inflows saw their third largest week at $5.6 billion.

Bank of America warned that frothiness is actually rising in markets, however, as investors keep on piling into stocks amid low interest rates, as well as hopes of a good recovery for corporate earnings and the economy. 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
Below had been the principle moves in markets, as of 7:16 a.m. ET Friday:

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

Dow futures (YM=F): 31,305.00, down fifty four points or even 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, printed 7.5 points or perhaps 0.19%

Dow futures (YM=F): 31,327.00, down 32 points or even 0.1%

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