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Stock market updates: S&P 500 rises to a fresh record closing huge

Stocks concluded 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 only a tick above the flatline. U.S. stocks shook off earlier declines after monitoring 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 1 % and pull back from a record high, after the company posted a surprise quarterly benefit and cultivated Disney+ streaming subscribers more than expected. Newly public company Bumble (BMBL), which set about 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 earnings rebounding way quicker than expected inspite of the ongoing pandemic. With at least 80 % of businesses these days having claimed fourth-quarter results, S&P 500 earnings per share (EPS) have topped estimates by 17 % for aggregate, and bounced back above pre COVID levels, based on 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 substantially more robust than we might have imagined when the pandemic for starters took hold.”

Stocks have continued to establish fresh record highs against this backdrop, and as monetary and fiscal policy support remain robust. But as investors come to be comfortable with firming corporate functionality, businesses may need to top greater expectations to be rewarded. This may in turn put some pressure on the broader market in the near-term, as well as warrant more astute assessments of specific stocks, in accordance with some strategists.

“It is actually no secret that S&P 500 performance has long been pretty powerful over the past few calendar years, driven largely through valuation development. But, 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 job, strong EPS growth is going to be necessary for the next leg greater. Fortunately, that is precisely what existing expectations are forecasting. But, we additionally realized that these types of’ EPS-driven’ periods tend to be more tricky from an investment strategy standpoint.”

“We assume that the’ easy cash days’ are more than for the time being and investors will have to tighten up the aim of theirs by evaluating the merits of individual stocks, as opposed to chasing the momentum-laden practices who 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 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’ is 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 new 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 company earnings calls up to this point, according to 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 (twenty eight), tax policy (twenty ) and COVID-19 policy (19) have been cited or perhaps talked about by the highest number of businesses with this point in time in 2021,” Butters wrote. “Of these twenty eight firms, seventeen expressed support (or a willingness to work with) the Biden administration on policies to greatly reduce carbon as well as greenhouse gas emissions. These seventeen firms both discussed initiatives to minimize the own carbon of theirs as well as greenhouse gas emissions or perhaps items or services they provide to support clients & customers lower their carbon and greenhouse gas emissions.”

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

The list of 28 companies discussing climate change and energy policy encompassed companies from an extensive 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 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 lower 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 month to month survey, as Americans’ assessments of the path ahead for the virus stricken economy suddenly 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, according to Bloomberg consensus data.

The entire loss of February was “concentrated in the Expectation Index and among households with incomes under $75,000. Households with incomes in the bottom third reported significant setbacks in their current finances, with fewer of these households mentioning recent income gains than whenever after 2014,” Richard Curtin chief economist for the university’s Surveys of Consumers, said in a statement.

“Presumably a new round of stimulus payments will lessen financial hardships with those with probably the lowest incomes. A lot more shocking 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 than last month,” he added.

9:30 a.m. ET: Stocks open lower, but pace toward posting weekly gains
Here’s where marketplaces were 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 ever as investors pile into tech stocks: Bank of America
Stock cash just simply 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 money throughout the week, the firm added.

Tech stocks in turn saw their very 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. 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 piling into stocks amid low interest rates, and hopes of a solid recovery for corporate earnings and the economy. The firm’s proprietary “Bull and 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 primary 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 perhaps 0.2%

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

Nasdaq futures (NQ=F): 13,711.25, printed 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 is where marketplaces were 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 32 points or 0.1%

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

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