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

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 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 benefits to fall greater than one % and take back from a record high, after the company posted a surprise quarterly benefit and cultivated Disney+ streaming prospects more than expected. Newly public company Bumble (BMBL), which began 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 results, with corporate earnings rebounding much faster than expected regardless of the ongoing pandemic. With at least eighty % of businesses these days having claimed fourth-quarter outcomes, S&P 500 earnings per share (EPS) have topped estimates by 17 % in aggregate, and bounced back above pre-COVID levels, according to an analysis by Credit Suisse analyst Jonathan Golub.

“Prompt and generous government activity mitigated the [virus-related] damage, leading to outsized economic and earnings surprises,” Golub said. “The earnings recovery has been considerably more robust than we might have dreamed when the pandemic first took hold.”

Stocks have continued to set up fresh record highs against this backdrop, and as monetary and fiscal policy support remain strong. But as investors become comfortable with firming business performance, companies might have to top even bigger expectations to be rewarded. This can in turn put some pressure on the broader market in the near term, as well as warrant much more astute assessments of individual stocks, according to some strategists.

“It is actually no secret that S&P 500 performance continues to be extremely powerful over the past several calendar years, driven largely through valuation expansion. Nevertheless, with the index P/E [price-to-earnings ratio] recently eclipsing its previous dot-com extremely 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 the job of ours, strong EPS growth is going to be important for the next leg greater. Thankfully, that’s precisely what present expectations are forecasting. But, we also discovered that these types of’ EPS-driven’ periods tend to be more tricky from an investment strategy standpoint.”

“We believe that the’ easy cash days’ are actually over for the time being and investors will have to tighten up the aim of theirs by evaluating the merits of specific stocks, as opposed to chasing the momentum-laden practices which 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 is where the key 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’ is 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 the latest 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 corporate earnings calls so 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 as well as energy policy (28), tax policy (20 COVID-19 and) policy (19) have been cited or maybe talked about by the highest number of companies with this point in time in 2021,” Butters wrote. “Of these twenty eight firms, 17 expressed support (or a willingness to the office with) the Biden administration on policies to greatly reduce carbon as well as greenhouse gas emissions. These 17 companies both discussed initiatives to minimize the own carbon of theirs and greenhouse gas emissions or items or services they provide to support clients and customers reduce their carbon and greenhouse gas emissions.”

“However, 4 companies also expressed some concerns about the executive order setting up a moratorium on new 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 a diverse array of industries, like JPMorgan Chase, United Airlines Holdings and 3M, alongside conventional oil majors as Chevron.

11:36 a.m. ET: Stocks mixed, 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 deliver 1.185%

10:15 a.m. ET: Consumer sentiment suddenly plunges to a six-month low in February: U. Michigan
U.S. consumer sentiment slid to probably the lowest level since August in February, according to the University of Michigan’s preliminary once a month survey, as Americans’ assessments of the path 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 a surge to 80.9, according to Bloomberg consensus data.

The complete 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 major setbacks in their present finances, 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 brand new round of stimulus payments will reduce financial hardships among those with probably 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 than last month,” he added.

9:30 a.m. ET: Stocks open lower, but speed toward posting weekly gains
Here’s in which markets 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 simply discovered 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 money throughout 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 their second-largest week of inflows ever at $25.1 billion, and U.S. tiny cap inflows saw the third largest week of theirs at $5.6 billion.

Bank of America warned that frothiness is rising in markets, nonetheless, as investors keep on piling into stocks amid low interest rates, along with hopes of a solid recovery for the economy and corporate earnings. 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
Here were the primary 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 fifty four points or perhaps 0.17%

Nasdaq futures (NQ=F): 13,711.25, down 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 marketplaces were trading Thursday as over night 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 even 0.1%

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

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