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

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 concluded 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 report 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 1 % and take back out of a record extremely high, after the company posted a surprise quarterly profit and grew Disney+ streaming subscribers much more than expected. Newly public company 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 stronger than expected earnings results, with corporate earnings rebounding way quicker than expected regardless of the ongoing pandemic. With over eighty % of businesses 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, according to an analysis by Credit Suisse analyst Jonathan Golub.

generous government behavior and “Prompt 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 dreamed when the pandemic first took hold.”

Stocks have continued to set up new record highs against this backdrop, and as monetary and fiscal policy assistance remain robust. But as investors become accustomed to firming business performance, companies may need 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 more astute assessments of individual stocks, in accordance with some strategists.

“It is actually no secret that S&P 500 performance has been really powerful over the past few calendar years, driven largely through valuation expansion. But, 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 would be required for the following leg greater. Fortunately, that’s exactly what existing expectations are forecasting. However, we also realized that these types of’ EPS-driven’ periods tend to be tricky from an investment strategy standpoint.”

“We think that the’ easy money days’ are over for the time being and investors will have to tighten up the focus of theirs by evaluating the merits of individual stocks, rather than chasing the momentum laden strategies that have just 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 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’ would be the most-cited Biden policy on corporate earnings calls: FactSet
Fourth-quarter earnings season represents the pioneer 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 up to this point, according to 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 (28), tax policy (twenty ) and COVID-19 policy (nineteen) have been cited or maybe discussed by the highest number of businesses through this point in time in 2021,” Butters wrote. “Of these 28 companies, 17 expressed support (or even a willingness to the office with) the Biden administration on policies to reduce carbon as well as greenhouse gas emissions. These 17 companies possibly discussed initiatives to minimize the own carbon of theirs as well as greenhouse gas emissions or services or goods they give to help customers and customers lower the carbon of theirs and greenhouse gas emissions.”

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

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

11:36 a.m. ET: Stocks combined, S&P 500 and Nasdaq turn positive
Here is where markets 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 yield 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 the lowest level since August in February, based on the Faculty of Michigan’s preliminary month to month survey, as Americans’ assessments of the road ahead for the virus-stricken economy suddenly grew a lot 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, based on Bloomberg consensus data.

The whole loss in February was “concentrated in the Expectation Index and among households with incomes under $75,000. Households with incomes of the bottom third reported significant setbacks in their present finances, 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 brand new round of stimulus payments will bring down fiscal hardships among those with the lowest incomes. A lot more surprising was the finding that consumers, despite the expected passage of a massive stimulus bill, viewed prospects for the national economy less favorably in early February compared to 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 simply 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 ever as investors pile into tech stocks: Bank of America
Stock funds just simply saw their largest-ever week of inflows for the period ended February 10, 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 money throughout the week, the firm added.

Tech stocks in turn saw their very 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. tiny cap inflows saw their third largest week 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, along with hopes of a good 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
Below were the primary moves in markets, as of 7:16 a.m. ET Friday:

S&P 500 futures (ES=F): 3,904.00, down 8.00 points or even 0.2%

Dow futures (YM=F): 31,305.00, down fifty four points or perhaps 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, down 7.5 points or even 0.19%

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

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