Stock market live updates: S&P 500 rises to a fresh record 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 %, even though the Dow finished just 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 1 % and pull back out of a record extremely high, after the company posted a surprise quarterly benefit and produced Disney+ streaming subscribers more than expected. Newly public organization Bumble (BMBL), which set about trading on the Nasdaq on Thursday, rose another seven % after jumping sixty three % in the public debut of its.

Over the past couple weeks, investors have absorbed a bevy of much stronger than expected earnings results, with company profits rebounding way quicker than expected inspite of the ongoing pandemic. With more than 80 % of businesses right now 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, in accordance with an analysis by Credit Suisse analyst Jonathan Golub.

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

Stocks have continued to establish fresh record highs against this backdrop, and as fiscal and monetary policy support remain strong. But as investors come to be used to firming business performance, companies may have to top greater 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 specific stocks, in accordance with some strategists.

“It is actually no secret that S&P 500 performance has long been really strong over the past several calendar years, driven mainly via valuation expansion. However, with the index P/E [price-to-earnings ratio] recently eclipsing its prior dot com extremely 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 our work, strong EPS growth is going to be important for the following leg greater. Fortunately, that’s exactly what current 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 over for the time being and investors will have to tighten up their focus by evaluating the merits of individual stocks, instead of chasing the momentum-laden practices that 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 is exactly 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 corporate earnings calls: FactSet
Fourth-quarter earnings season represents the pioneer with President Joe Biden in the White House, bringing a brand new political backdrop for corporations to contemplate.

Biden’s policies around climate change as well as environmental protections have been the most cited political issues brought up on corporate earnings calls so far, in accordance with an analysis from FactSet’s John Butters.

“In terms of government policies mentioned in conjunction with the Biden administration, climate change and energy policy (28), tax policy (20 ) and COVID-19 policy (nineteen) have been cited or perhaps reviewed by the highest number of companies through this point in time in 2021,” Butters wrote. “Of these 28 firms, seventeen expressed support (or perhaps a willingness to your workplace with) the Biden administration on policies to greatly reduce carbon and greenhouse gas emissions. These seventeen firms both discussed initiatives to reduce their very own carbon and greenhouse gas emissions or perhaps goods or services they provide to support clientele & customers reduce their carbon and greenhouse gas emissions.”

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

The list of twenty eight firms discussing climate change as well as energy policy encompassed businesses 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 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 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 the lowest level since August in February, based on the Faculty of Michigan’s preliminary once a month survey, as Americans’ assessments of the road forward for the virus-stricken economy unexpectedly grew more grim.

The headline consumer sentiment index dipped to 76.2 from 79.0 in January, sharply missing expectations for an increase to 80.9, according to Bloomberg consensus data.

The complete 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 considerable setbacks in the present finances of theirs, with fewer of the households mentioning latest income gains than whenever since 2014,” Richard Curtin chief economist for the university’s Surveys of Consumers, said in a statement.

“Presumably a new round of stimulus payments will reduce fiscal hardships with those with probably the lowest incomes. Much more surprising was the finding that customers, despite the expected passage of a grand 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 deliver 1.19%

9:05 a.m. ET: Equity funds see highest weekly inflows actually as investors pile into tech stocks: Bank of America
Stock cash 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 profit 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 their second largest week 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 actually rising in markets, nevertheless, as investors continue piling into stocks amid low interest rates, and hopes of a strong recovery for corporate profits and the economy. 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
Below were the principle moves in markets, as of 7:16 a.m. ET Friday:

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

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

Nasdaq futures (NQ=F): 13,711.25, down 17.75 points or perhaps 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 where marketplaces were trading Thursday as over night 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 32 points or even 0.1%

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