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Stock market updates: S&P 500 rises to a fresh record 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 ended only 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 profits to fall greater than 1 % and pull back from a record high, after the company posted a surprise quarterly benefit and grew Disney+ streaming subscribers 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 company profits rebounding faster than expected regardless of the continuous pandemic. With at least 80 % of companies 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 levels, in accordance with an analysis by Credit Suisse analyst Jonathan Golub.

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

Stocks have continued to set new record highs against this backdrop, and as monetary and fiscal policy assistance remain strong. But as investors come to be comfortable with firming corporate functionality, companies may 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 more astute assessments of specific stocks, based on some strategists.

“It is actually no secret that S&P 500 performance has been quite formidable over the past several calendar years, driven mostly through valuation development. Nevertheless, 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 the job of ours, strong EPS growth would be important for the next leg greater. Thankfully, that is precisely what present expectations are forecasting. But, we additionally discovered that these kinds 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 need to tighten up their aim by evaluating the merits of specific stocks, rather than chasing the momentum laden methods which have recently dominated the expense 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 key 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 company earnings calls: FactSet
Fourth-quarter earnings season represents the first with President Joe Biden in the White House, bringing an innovative 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 corporate earnings calls up to this point, in accordance with 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 (20 COVID-19 and) policy (nineteen) have been cited or discussed by the highest number of businesses through this point in time in 2021,” Butters wrote. “Of these 28 companies, seventeen expressed support (or a willingness to your workplace with) the Biden administration on policies to greatly reduce carbon and greenhouse gas emissions. These seventeen companies either discussed initiatives to reduce their very own carbon as well as greenhouse gas emissions or maybe services or items they give to help customers and customers reduce the carbon of theirs and greenhouse gas emissions.”

“However, 4 businesses also expressed some concerns about the executive order establishing a moratorium on new oil and gas leases on federal lands (plus offshore),” he added.

The list of twenty eight companies discussing climate change as well as energy policy encompassed organizations from a diverse array of industries, like 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’s 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 suddenly plunges to a six month low in February: U. Michigan
U.S. consumer sentiment slid to the lowest level since 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 unexpectedly grew 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, as reported by Bloomberg consensus data.

The entire loss in 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 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 probably the lowest incomes. Much more surprising was the finding that consumers, despite the likely passage of a massive 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 where markets were 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 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 discovered 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 own record week 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. tiny cap inflows saw their third-largest week at $5.6 billion.

Bank of America warned that frothiness is rising in markets, nevertheless, as investors continue piling into stocks amid low interest rates, along with 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
Below were the main movements in markets, as of 7:16 a.m. ET Friday:

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

Dow futures (YM=F): 31,305.00, down fifty four points or even 0.17%

Nasdaq futures (NQ=F): 13,711.25, printed 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’s in which marketplaces had been 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 32 points or 0.1%

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

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