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

Posted by Charles Riley on

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 aproximatelly 0.5 %, even though the Dow finished simply 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 country.

Shares of Dow component Disney (DIS) reversed earlier benefits to fall more than one % and guide back from a record extremely high, after the company posted a surprise quarterly benefit and grew Disney+ streaming subscribers more than expected. Newly public company Bumble (BMBL), which started trading on the Nasdaq on Thursday, rose another seven % after jumping sixty three % in its public debut.

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

“Prompt and good government action mitigated the [virus-related] damage, 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 first took hold.”

Stocks have continued to establish fresh record highs against this backdrop, and as monetary and fiscal policy support remain strong. But as investors come to be accustomed to firming business functionality, companies could possibly need to top greater expectations in order to be rewarded. This may in turn put some pressure on the broader market in the near term, and warrant much more astute assessments of individual stocks, according to some strategists.

“It is actually no secret that S&P 500 performance has long been quite powerful over the past several calendar years, driven mostly through valuation development. Nonetheless, with the index P/E [price-to-earnings ratio] recently eclipsing its previous dot-com extremely high, we think that valuation multiples will start to compress in the coming months,” BMO Capital Markets strategist Brian Belski wrote in a note Thursday. “According to our job, strong EPS growth is going to be required for the following leg higher. Fortunately, that’s precisely what present expectations are forecasting. However, we also discovered that these kinds of’ EPS-driven’ periods tend to be more challenging from an investment strategy standpoint.”

“We think that the’ easy money days’ are actually more than for the time being and investors will have to tighten up their aim by evaluating the merits of specific stocks, as opposed to chasing the momentum-laden methods that 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 exactly 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’ is 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 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 company earnings calls so 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 (28), tax policy (twenty COVID-19 and) policy (19) have been cited or perhaps reviewed by the highest number of businesses through this point on time in 2021,” Butters wrote. “Of these 28 firms, 17 expressed support (or perhaps a willingness to work with) the Biden administration on policies to reduce carbon and greenhouse gas emissions. These seventeen corporations both discussed initiatives to reduce their own carbon and greenhouse gas emissions or services or items they supply to help clients & customers lower their carbon and greenhouse gas emissions.”

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

The list of twenty eight firms 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 mixed, S&P 500 and Nasdaq turn positive
Here is in which 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 unexpectedly plunges to a six-month low in February: U. Michigan
U.S. consumer sentiment slid to the lowest level after August in February, based on the Faculty of Michigan’s preliminary month to month survey, as Americans’ assessments of the road forward for the virus-stricken economy unexpectedly grew more grim.

The title consumer sentiment index dipped to 76.2 from 79.0 in January, sharply missing expectations for an increase to 80.9, as reported by Bloomberg consensus data.

The whole loss of February was “concentrated in the Expectation Index and involving households with incomes under $75,000. Households with incomes of the bottom third reported major setbacks in their current 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 reduce financial hardships with those with the lowest incomes. More surprising 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 pace toward posting weekly gains
Here is in which 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 actually as investors pile into tech stocks: Bank of America
Stock cash simply discovered the largest-ever week of theirs of inflows for the period ended February ten, 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 profit during 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. smaller cap inflows saw the third-largest week of theirs at $5.6 billion.

Bank of America warned that frothiness is actually rising in markets, nonetheless, as investors keep on piling into stocks amid low interest rates, as well as hopes of a solid recovery for the economy and corporate profits. The firm’s proprietary “Bull as well as 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 principle moves 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 54 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 yield 1.163%

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

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

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

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