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Stock market news: S&P 500 rises to a fresh record 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 about 0.5 %, even though 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 report 9.9 % in 2020 as a virus induced recession swept the country.

Shares of Dow component Disney (DIS) reversed earlier benefits to fall greater than 1 % and guide back from a record extremely high, after the company posted a surprise quarterly profit and cultivated Disney+ streaming subscribers more than expected. Newly public organization Bumble (BMBL), which began 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 results, with corporate profits rebounding way quicker than expected regardless of the continuous pandemic. With over 80 % of companies 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, in accordance with an analysis by Credit Suisse analyst Jonathan Golub.

generous government action and “Prompt mitigated the [virus-related] damage, leading to outsized economic and earnings surprises,” Golub said. “The earnings recovery has been substantially more effective than we could have imagined when the pandemic for starters took hold.”

Stocks have continued to set up fresh record highs against this backdrop, and as monetary and fiscal policy assistance remain robust. But as investors become used to firming corporate functionality, companies could possibly 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, as well as warrant more astute assessments of individual stocks, according to some strategists.

“It is no secret that S&P 500 performance has long been really formidable over the past few calendar years, driven largely via valuation expansion. Nonetheless, with the index P/E [price-to-earnings ratio] recently eclipsing its previous dot com 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 our work, strong EPS growth is going to be necessary for the next leg higher. Thankfully, that is precisely what present expectations are forecasting. However, we in addition found that these types of’ EPS-driven’ periods tend to be complicated from an investment strategy standpoint.”

“We assume that the’ easy money 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 methods who have just recently dominated the investment landscape,” he added.

4:00 p.m. ET: Stocks end higher, S&P 500 and Nasdaq reach record closing highs
Here is exactly where the main 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’ will be the most-cited Biden policy on corporate earnings calls: FactSet
Fourth-quarter earnings season signifies the pioneer with President Joe Biden in the White House, bringing a new 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 thus far, according to 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 maybe discussed by the highest number of companies with this point on time in 2021,” Butters wrote. “Of these twenty eight firms, seventeen 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 seventeen firms both discussed initiatives to minimize their own carbon and greenhouse gas emissions or maybe services or goods they supply to help customers and customers reduce their carbon and greenhouse gas emissions.”

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

The list of twenty eight companies discussing climate change and energy policy encompassed organizations from a diverse array of industries, like JPMorgan Chase, United Airlines Holdings and 3M, alongside traditional oil majors as Chevron.

11:36 a.m. ET: Stocks mixed, S&P 500 and Nasdaq turn positive
Here is in which 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 low in February: U. Michigan
U.S. consumer sentiment slid to the lowest level since August in February, according to the Faculty of Michigan’s preliminary month to month survey, as Americans’ assessments of the path forward for the virus-stricken economy unexpectedly grew much more grim.

The title 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 below $75,000. Households with incomes in the bottom third reported significant setbacks in the current finances of theirs, with fewer of these 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 brand new round of stimulus payments will lessen fiscal hardships among those with the lowest incomes. Much more shocking was the finding that consumers, 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 pace toward posting weekly gains
Here’s where 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 cash just simply saw their largest-ever week of inflows for the period ended February ten, 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 cash during the week, the firm added.

Tech stocks in turn saw their own record week of inflows during $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 rising in markets, nevertheless, as investors keep on piling into stocks amid low interest rates, along with hopes of a good recovery for corporate profits 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
Here were the main movements in markets, as of 7:16 a.m. ET Friday:

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

Dow futures (YM=F): 31,305.00, down 54 points or perhaps 0.17%

Nasdaq futures (NQ=F): 13,711.25, down 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 deliver 1.163%

6:03 p.m. ET Thursday: Stock futures tick higher
Here is where markets had been trading Thursday as overnight 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, printed 25.5 points or even 0.19%

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