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

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 aproximatelly 0.5 %, even though the Dow ended only 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 profits to fall greater than one % and pull back out of a record high, after the company posted a surprise quarterly benefit and grew Disney+ streaming prospects more than expected. Newly public organization Bumble (BMBL), which set about trading on the Nasdaq on Thursday, rose another seven % after jumping 63 % in the public debut of its.

Over the older couple weeks, investors have absorbed a bevy of much stronger than expected earnings benefits, with company profits rebounding much faster than expected regardless of the ongoing pandemic. With more than 80 % of companies these days having reported fourth-quarter outcomes, S&P 500 earnings per share (EPS) have topped estimates by seventeen % for aggregate, and bounced back above pre COVID levels, in accordance with an analysis by Credit Suisse analyst Jonathan Golub.

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

Stocks have continued to establish fresh record highs against this backdrop, and as monetary and fiscal policy assistance stay robust. But as investors come to be accustomed to firming business performance, companies could possibly have to top even 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 individual stocks, based on some strategists.

“It is no secret that S&P 500 performance has long been quite powerful over the past several calendar years, driven mainly through valuation development. However, with the index P/E [price-to-earnings ratio] recently eclipsing its prior dot com high, we believe that valuation multiples will begin 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 necessary for the following leg greater. Fortunately, that is precisely what current expectations are forecasting. Nonetheless, we additionally found that these types of’ EPS-driven’ periods tend to be complicated from an investment strategy standpoint.”

“We think that the’ easy cash days’ are actually over for the time being and investors will need to tighten up their focus by evaluating the merits of specific stocks, rather than chasing the momentum-laden practices which have just recently dominated the expense landscape,” he added.

4:00 p.m. ET: Stocks end higher, S&P 500 and Nasdaq reach history 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 signifies the very first with President Joe Biden in the White House, bringing an innovative 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 corporate earnings calls thus far, in accordance with an analysis from FactSet’s John Butters.

“In terms of government policies discussed in conjunction with the Biden administration, climate change and energy policy (twenty eight), tax policy (twenty ) and COVID-19 policy (nineteen) have been cited or perhaps talked about by probably the highest number of businesses with this point on time in 2021,” Butters wrote. “Of these twenty eight companies, seventeen expressed support (or perhaps a willingness to your workplace with) the Biden administration on policies to reduce carbon as well as greenhouse gas emissions. These seventeen firms possibly discussed initiatives to reduce their own carbon and greenhouse gas emissions or services or goods they supply to help customers 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 oil as well as gas leases on federal lands (and also offshore),” he added.

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

11:36 a.m. ET: Stocks mixed, S&P 500 and Nasdaq turn positive
Here is 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 deliver 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 after August in February, according to the Faculty 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 title consumer sentiment index dipped to 76.2 from 79.0 in January, sharply lacking expectations for a rise to 80.9, according to Bloomberg consensus data.

The complete loss of February was “concentrated in the Expectation Index and involving 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 latest income gains than whenever 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 reduce fiscal hardships among those with 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 than more month,” he added.

9:30 a.m. ET: Stocks open lower, but pace toward posting weekly gains
Here is where 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 saw the largest-ever week of theirs 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 profit throughout the week, the firm added.

Tech stocks in turn saw their very own record week 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. tiny 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 on piling into stocks amid low interest rates, along with hopes of a strong recovery for corporate profits and the economy. The firm’s proprietary “Bull as well as 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 had been the primary movements in markets, as of 7:16 a.m. ET Friday:

S&P 500 futures (ES=F): 3,904.00, printed 8.00 points or even 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 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 markets had been trading Thursday as over night 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 32 points or perhaps 0.1%

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