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Stock market news: 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 %, while the Dow concluded simply 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 record 9.9 % in 2020 as a virus-induced recession swept the nation.

Shares of Dow component Disney (DIS) reversed earlier gains to fall more than 1 % and take back out of a record extremely high, after the company posted a surprise quarterly profit and cultivated Disney+ streaming prospects much more than expected. Newly public organization Bumble (BMBL), which began trading on the Nasdaq on Thursday, rose another seven % after jumping 63 % in its public debut.

Over the older couple weeks, investors have absorbed a bevy of stronger than expected earnings results, with corporate profits rebounding faster than expected inspite of the ongoing pandemic. With at least 80 % of companies right now having reported fourth quarter outcomes, S&P 500 earnings per share (EPS) have topped estimates by 17 % for aggregate, and bounced back above pre-COVID levels, in accordance with 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 effective than we may have imagined when the pandemic first took hold.”

Stocks have continued to set new record highs against this backdrop, and as fiscal and monetary policy support stay robust. But as investors become comfortable with firming business functionality, companies may have to top greater expectations to be rewarded. This may 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 has long been pretty powerful over the past several calendar years, driven mostly through valuation expansion. Nonetheless, with the index P/E [price-to-earnings ratio] recently eclipsing its previous 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 our job, strong EPS growth will be required for the following leg higher. Thankfully, that is precisely what current expectations are forecasting. But, we in addition found that these sorts of’ EPS-driven’ periods tend to be challenging from an investment strategy standpoint.”

“We assume that the’ easy money days’ are over for the time being and investors will need to tighten up their focus by evaluating the merits of individual stocks, rather than chasing the momentum laden strategies 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’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 company earnings calls: FactSet
Fourth-quarter earnings season signifies the very first with President Joe Biden in the White House, bringing a 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 thus far, based on 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 (twenty eight), tax policy (20 ) and COVID-19 policy (19) have been cited or perhaps discussed by probably the highest number of companies with this point in time in 2021,” Butters wrote. “Of these twenty eight firms, 17 expressed support (or even a willingness to your workplace with) the Biden administration on policies to reduce carbon as well as greenhouse gas emissions. These seventeen corporations possibly discussed initiatives to minimize their very own carbon as well as greenhouse gas emissions or maybe services or merchandise they provide to support clients & customers reduce their carbon and greenhouse gas emissions.”

“However, 4 companies also expressed a number of 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 twenty eight companies discussing climate change and energy policy encompassed organizations from an extensive array of industries, like 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 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 low in February: U. Michigan
U.S. consumer sentiment slid to probably the lowest level after August in February, based on the University of Michigan’s preliminary monthly survey, as Americans’ assessments of the road forward for the virus-stricken economy suddenly grew more grim.

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

The entire 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 significant setbacks in the present finances of theirs, with fewer of these households mentioning recent income gains than anytime 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 lessen financial hardships among those with the lowest incomes. More surprising was the finding that consumers, despite the expected 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 pace 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 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 funds simply saw the largest-ever week of theirs of inflows for the period ended February ten, 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 profit during the week, the firm added.

Tech stocks in turn saw the own record week of theirs of inflows at $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. small 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 piling into stocks amid low interest rates, as well as hopes of a strong recovery for corporate earnings and the economy. The firm’s proprietary “Bull and 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
Here had been the main movements 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 0.17%

Nasdaq futures (NQ=F): 13,711.25, printed 17.75 points or even 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’s 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 even 0.19%

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

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

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