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Stock market live: 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 %, even though the Dow concluded just 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 nation.

Shares of Dow component Disney (DIS) reversed earlier profits to fall greater than one % and take back out of a record extremely high, after the company posted a surprise quarterly benefit and produced Disney+ streaming prospects much more than expected. Newly public company Bumble (BMBL), which started trading on the Nasdaq on Thursday, rose another seven % after jumping 63 % in the public debut of its.

Over the older couple weeks, investors have absorbed a bevy of much stronger than expected earnings results, with corporate earnings rebounding way quicker than expected inspite of the ongoing pandemic. With more than eighty % of businesses right now having claimed fourth-quarter results, S&P 500 earnings per share (EPS) have topped estimates by seventeen % in aggregate, and bounced back above pre-COVID amounts, according to 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 powerful than we might have thought possible when the pandemic for starters took hold.”

Stocks have continued to set up new record highs against this backdrop, and as monetary and fiscal policy support stay strong. But as investors come to be used to firming corporate functionality, companies might need to top even bigger expectations to be rewarded. This may in turn put some pressure on the broader market in the near term, and warrant more astute assessments of individual stocks, in accordance with some strategists.

“It is actually no secret that S&P 500 performance has long been extremely strong over the past few calendar years, driven primarily via valuation expansion. But, with the index P/E [price-to-earnings ratio] recently eclipsing its previous 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 the work of ours, strong EPS growth would be necessary for the next leg higher. Thankfully, that is exactly what existing expectations are forecasting. Nevertheless, we also realized that these types of’ EPS-driven’ periods tend to become more complicated from an investment strategy standpoint.”

“We believe that the’ easy money days’ are actually more than for the time being and investors will need to tighten up their focus by evaluating the merits of individual stocks, as opposed to chasing the momentum laden strategies who 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 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’ 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 the latest 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 as well as energy policy (twenty eight), tax policy (20 ) and COVID-19 policy (19) have been cited or perhaps reviewed by the highest number of businesses through this point in time in 2021,” Butters wrote. “Of these twenty eight companies, 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 either discussed initiatives to minimize their very own carbon as well as greenhouse gas emissions or maybe products or services they give to assist clients & customers lower their carbon and greenhouse gas emissions.”

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

The list of twenty eight firms discussing climate change and energy policy encompassed organizations from an extensive array of industries, including JPMorgan Chase, United Airlines Holdings and 3M, alongside traditional oil majors like Chevron.

11:36 a.m. ET: Stocks mixed, S&P 500 and Nasdaq turn positive
Here’s in which markets were 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 unexpectedly plunges to a six month low in February: U. Michigan
U.S. consumer sentiment slid to probably the lowest level after August in February, in accordance with the University of Michigan’s preliminary monthly survey, as Americans’ assessments of the road forward for the virus-stricken economy suddenly grew more grim.

The title consumer sentiment index dipped to 76.2 from 79.0 in January, sharply losing out on expectations for an increase to 80.9, as reported by Bloomberg consensus data.

The whole loss in February was “concentrated in the Expectation Index and involving households with incomes below $75,000. Households with incomes of the bottom third reported significant setbacks in their current finances, with fewer of the 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 bring down fiscal hardships among those with probably the lowest incomes. A lot 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 than more month,” he added.

9:30 a.m. ET: Stocks open lower, but pace toward posting weekly gains
Here is in which markets were trading only 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 discovered their largest ever week of inflows for the period ended February 10, with inflows totaling a record $58.1 billion, as reported by 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. small 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, and hopes of a good 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 primary actions 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 54 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 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 32 points or perhaps 0.1%

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

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