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

Stocks finished 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 concluded just a tick above the flatline. U.S. stocks shook off earlier declines after monitoring 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 profits to fall greater than one % and guide 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 company Bumble (BMBL), which began trading on the Nasdaq on Thursday, rose another 7 % after jumping sixty three % in the public debut of its.

Over the older couple weeks, investors have absorbed a bevy of stronger than expected earnings results, with corporate earnings rebounding way quicker than expected regardless of the ongoing pandemic. With over 80 % of companies now having claimed fourth quarter outcomes, S&P 500 earnings per share (EPS) have topped estimates by seventeen % in aggregate, and bounced back above pre COVID amounts, in accordance with an analysis by Credit Suisse analyst Jonathan Golub.

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

Stocks have continued to establish fresh record highs against this backdrop, and as fiscal and monetary policy support remain strong. But as investors become used to firming corporate functionality, companies could possibly need to top greater expectations to be rewarded. This can in turn put some pressure on the broader market in the near term, and also warrant much more astute assessments of specific stocks, in accordance with some strategists.

“It is actually no secret that S&P 500 performance continues to be pretty strong over the past few calendar years, driven mostly through valuation expansion. However, with the index P/E [price-to-earnings ratio] recently eclipsing its prior 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 the work of ours, strong EPS growth is going to be necessary for the following leg higher. Fortunately, that’s exactly what current expectations are forecasting. Nonetheless, we additionally realized that these sorts of’ EPS-driven’ periods tend to be more complicated from an investment strategy standpoint.”

“We think that the’ easy cash days’ are actually over for the time being and investors will have to tighten up their focus by evaluating the merits of individual stocks, as opposed to chasing the momentum laden practices which have recently dominated the investment landscape,” he added.

4:00 p.m. ET: Stocks end higher, S&P 500 and Nasdaq reach history closing highs
Here is where the main 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 company earnings calls: FactSet
Fourth-quarter earnings season signifies the 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 company earnings calls up to this point, based on an analysis from FactSet’s John Butters.

“In terms of government policies discussed in conjunction with the Biden administration, climate change as well as energy policy (28), tax policy (twenty ) and COVID-19 policy (nineteen) have been cited or maybe discussed by the highest number of businesses with this point on time in 2021,” Butters wrote. “Of these twenty eight companies, seventeen expressed support (or a willingness to work with) the Biden administration on policies to reduce carbon as well as greenhouse gas emissions. These 17 companies either discussed initiatives to minimize the own carbon of theirs and greenhouse gas emissions or services or goods they supply to help customers and customers lower their carbon and greenhouse gas emissions.”

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

The list of 28 companies discussing climate change and energy policy encompassed organizations from an extensive array of industries, like JPMorgan Chase, United Airlines Holdings and 3M, alongside conventional oil majors like Chevron.

11:36 a.m. ET: Stocks combined, 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 suddenly plunges to a six-month low in February: U. Michigan
U.S. consumer sentiment slid to probably the lowest level since August in February, in accordance with the University of Michigan’s preliminary month to month survey, as Americans’ assessments of the road 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 losing out on expectations for a rise to 80.9, based on Bloomberg consensus data.

The complete loss of February was “concentrated in the Expectation Index and among households with incomes below $75,000. Households with incomes of the bottom third reported major setbacks in their present finances, with fewer of these households mentioning recent income gains than whenever after 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 financial hardships with those with probably the lowest incomes. More surprising was the finding that consumers, despite the likely passage of a grand 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 speed toward posting weekly gains
Here is in which marketplaces were 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 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 cash 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 rising in markets, nevertheless, as investors continue piling into stocks amid low interest rates, and hopes of a solid recovery for the economy and corporate earnings. 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
Below were the primary 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 fifty four points or perhaps 0.17%

Nasdaq futures (NQ=F): 13,711.25, down 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 deliver 1.163%

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

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