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

Stocks concluded 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 %, even though the Dow ended only a tick above the flatline. U.S. stocks shook off earlier declines after following 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 nation.

Shares of Dow component Disney (DIS) reversed earlier benefits to fall greater than 1 % and pull back out of a record extremely high, after the company posted a surprise quarterly profit and grew Disney+ streaming prospects much more than expected. Newly public business Bumble (BMBL), which started trading on the Nasdaq on Thursday, rose another 7 % after jumping sixty three % in its public debut.

Over the older couple weeks, investors have absorbed a bevy of stronger than expected earnings results, with company earnings rebounding way quicker than expected despite the continuous pandemic. With at least eighty % of businesses now having reported fourth-quarter results, S&P 500 earnings per share (EPS) have topped estimates by 17 % in aggregate, and bounced back above pre COVID amounts, in accordance with an analysis by Credit Suisse analyst Jonathan Golub.

good government behavior and “Prompt mitigated the [virus-related] injury, leading to outsized economic and earnings surprises,” Golub said. “The earnings recovery has been considerably more effective than we may have imagined when the pandemic for starters took hold.”

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

“It is no secret that S&P 500 performance has been quite powerful over the past several calendar years, driven largely through valuation expansion. However, with the index P/E [price-to-earnings ratio] recently eclipsing its previous 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 work of ours, strong EPS growth will be important for the next leg greater. Fortunately, that is exactly what existing expectations are forecasting. Nonetheless, we in addition found that these kinds of’ EPS-driven’ periods tend to be more challenging from an investment strategy standpoint.”

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

4:00 p.m. ET: Stocks end higher, S&P 500 and Nasdaq reach record closing highs
Here is exactly 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 company earnings calls: FactSet
Fourth-quarter earnings season represents 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 environmental protections as well as climate change have been the most-cited political issues brought up on corporate earnings calls thus 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 (nineteen) have been cited or perhaps reviewed by probably the highest number of businesses through this point in time in 2021,” Butters wrote. “Of these 28 firms, 17 expressed support (or perhaps a willingness to the office with) the Biden administration on policies to greatly reduce carbon and greenhouse gas emissions. These seventeen firms both discussed initiatives to reduce their own carbon and greenhouse gas emissions or maybe merchandise or services they give to help customers & customers reduce the carbon of theirs and greenhouse gas emissions.”

“However, 4 businesses also expressed some concerns about the executive order setting up a moratorium on new engine oil and gas leases on federal lands (and also offshore),” he added.

The list of 28 companies discussing climate change as well as energy policy encompassed companies from an extensive 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 the lowest level after August in February, in accordance with the Faculty of Michigan’s preliminary once a month survey, as Americans’ assessments of the path forward for the virus-stricken economy unexpectedly grew much more grim.

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

The complete loss in February was “concentrated in the Expectation Index and among households with incomes below $75,000. Households with incomes of the bottom third reported significant setbacks in their present finances, with fewer of these households mentioning recent income gains than whenever 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 reduce financial hardships among those with probably the lowest incomes. A lot more surprising was the finding that consumers, despite the likely passage of a large stimulus bill, viewed prospects for the national economy less favorably in early February than more month,” he added.

9:30 a.m. ET: Stocks open lower, but speed toward posting weekly gains
Here is where marketplaces had been trading just 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 ever as investors pile into tech stocks: Bank of America
Stock funds just simply discovered their largest-ever week of inflows for the period ended February ten, 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 during 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 the second largest week of theirs 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, however, as investors keep piling into stocks amid low interest rates, as well as hopes of a strong recovery for corporate profits and the economy. 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 main 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 perhaps 0.2%

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

Nasdaq futures (NQ=F): 13,711.25, printed 17.75 points or 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 is in which marketplaces were trading Thursday as over night 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 perhaps 0.1%

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

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