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Stock market news: S&P 500 rises to a fresh history closing huge

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 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 report 9.9 % in 2020 as a virus-induced recession swept the nation.

Shares of Dow component Disney (DIS) reversed earlier gains to fall greater than one % and guide back from a record high, after the company posted a surprise quarterly benefit and produced Disney+ streaming subscribers more than expected. Newly public company Bumble (BMBL), which started trading on the Nasdaq on Thursday, rose another 7 % after jumping 63 % in its public debut.

Over the past couple weeks, investors have absorbed a bevy of stronger than expected earnings benefits, with corporate earnings rebounding much faster than expected inspite of the continuous pandemic. With over eighty % of businesses now having reported fourth-quarter results, S&P 500 earnings per share (EPS) have topped estimates by 17 % in aggregate, and bounced back above pre-COVID amounts, according to 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 considerably more effective than we may have imagined when the pandemic first took hold.”

Stocks have continued to set up fresh record highs against this backdrop, and as fiscal and monetary policy assistance remain strong. But as investors become used to firming corporate functionality, businesses could possibly have to top even greater expectations in order to be rewarded. This could in turn put some pressure on the broader market in the near term, as well as warrant more astute assessments of specific stocks, based on some strategists.

“It is actually no secret that S&P 500 performance has long been quite powerful over the past few calendar years, driven mostly via valuation expansion. Nevertheless, with the index P/E [price-to-earnings ratio] recently eclipsing its previous dot com 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 job of ours, strong EPS growth is going to be necessary for the following leg higher. Fortunately, that’s precisely what present expectations are forecasting. Nonetheless, we in addition discovered that these sorts of’ EPS-driven’ periods tend to become more tricky from an investment strategy standpoint.”

“We assume that the’ easy cash days’ are actually more than for the time being and investors will need to tighten up their focus by evaluating the merits of specific stocks, as opposed to chasing the momentum-laden methods who 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’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’ would be 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 environmental protections and climate change have been the most cited political issues brought up on company earnings calls so far, based on 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 (19) have been cited or perhaps discussed by the highest number of companies through 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 greatly reduce carbon as well as greenhouse gas emissions. These 17 corporations both discussed initiatives to minimize the own carbon of theirs and greenhouse gas emissions or items or services they supply to help clientele 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 and gas leases on federal lands (plus offshore),” he added.

The list of 28 firms discussing climate change and energy policy encompassed companies from an extensive array of industries, including JPMorgan Chase, United Airlines Holdings and 3M, alongside conventional oil majors like Chevron.

11:36 a.m. ET: Stocks mixed, S&P 500 and Nasdaq turn positive
Here’s 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 yield 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, according to the University of Michigan’s preliminary once a month survey, as Americans’ assessments of the road forward for the virus stricken economy suddenly grew much more grim.

The title consumer sentiment index dipped to 76.2 from 79.0 in January, sharply missing expectations for a rise 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 of the bottom third reported major setbacks in their present finances, with fewer of these households mentioning recent income gains than whenever 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. Much more surprising was the finding that customers, despite the likely passage of a large 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 speed toward posting weekly gains
Here is where markets 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 funds just saw the largest ever week of theirs 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 profit throughout 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 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 rising in markets, however, as investors keep piling into stocks amid low interest rates, and 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 main actions 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 54 points or even 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 deliver 1.163%

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

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

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