Stock market live: 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 %, even though the Dow concluded just 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 extremely high, after the company posted a surprise quarterly benefit and grew Disney+ streaming prospects more than expected. Newly public business Bumble (BMBL), which began trading on the Nasdaq on Thursday, rose another seven % after jumping 63 % in the public debut of its.

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

“Prompt and generous government activity mitigated the [virus related] injury, leading to outsized economic and earnings surprises,” Golub said. “The earnings recovery has been substantially more robust than we might have thought possible 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 remain strong. But as investors come to be comfortable with firming corporate functionality, companies could possibly have to top even greater expectations in order 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, based on some strategists.

“It is no secret that S&P 500 performance has been very powerful over the past few calendar years, driven largely via valuation expansion. However, with the index P/E [price-to-earnings ratio] recently eclipsing its previous dot com extremely high, we think that valuation multiples will begin 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 required for the next leg greater. Thankfully, that’s exactly what present expectations are forecasting. Nonetheless, we additionally discovered that these types of’ EPS-driven’ periods tend to be tricky from an investment strategy standpoint.”

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

4:00 p.m. ET: Stocks end higher, S&P 500 and Nasdaq reach record closing highs
Here’s where the major stock indexes ended 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 marks the pioneer with President Joe Biden in the White House, bringing the latest political backdrop for corporations to contemplate.

Biden’s policies around environmental protections and climate change have been the most cited political issues brought up on company earnings calls thus far, in accordance with 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 discussed by probably the highest number of companies through this point on time in 2021,” Butters wrote. “Of these 28 firms, 17 expressed support (or a willingness to work with) the Biden administration on policies to greatly reduce carbon as well as greenhouse gas emissions. These seventeen companies both discussed initiatives to reduce the own carbon of theirs as well as greenhouse gas emissions or maybe services or merchandise they provide to assist 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 oil and gas leases on federal lands (and also offshore),” he added.

The list of twenty eight companies discussing climate change as well as energy policy encompassed organizations from an extensive array of industries, including JPMorgan Chase, United Airlines Holdings and 3M, alongside traditional oil majors like Chevron.

11:36 a.m. ET: Stocks mixed, 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 since August in February, based on the University of Michigan’s preliminary month to month survey, as Americans’ assessments of the road ahead for the virus stricken economy unexpectedly grew much more grim.

The title consumer sentiment index dipped to 76.2 from 79.0 in January, sharply lacking expectations for a surge to 80.9, as reported by 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 in the bottom third reported significant setbacks in the present finances of theirs, with fewer of the 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 new round of stimulus payments will bring down fiscal hardships among those with probably the lowest incomes. Much more surprising was the finding that customers, 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 in which marketplaces 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 actually as investors pile into tech stocks: Bank of America
Stock funds 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 cash 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 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 rising in markets, however, as investors keep on piling into stocks amid low interest rates, and hopes of a good 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 were the primary actions in markets, as of 7:16 a.m. ET Friday:

S&P 500 futures (ES=F): 3,904.00, printed 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, 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 yield 1.163%

6:03 p.m. ET Thursday: Stock futures tick higher
Here is in which markets 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 thirty two points or perhaps 0.1%

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

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