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 aproximatelly 0.5 %, while the Dow concluded just 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 country.

Shares of Dow component Disney (DIS) reversed earlier gains to fall greater than 1 % and take back from a record extremely high, after the company posted a surprise quarterly profit and grew Disney+ streaming prospects much more than expected. Newly public company Bumble (BMBL), which began 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 at least eighty % of businesses these days having claimed fourth-quarter outcomes, S&P 500 earnings per share (EPS) have topped estimates by seventeen % for aggregate, and bounced back above pre COVID amounts, according to an analysis by Credit Suisse analyst Jonathan Golub.

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

Stocks have continued to set up fresh record highs against this backdrop, and as fiscal and monetary policy assistance stay robust. But as investors come to be comfortable with firming business performance, businesses may have to top even greater expectations to be rewarded. This could in turn put some pressure on the broader market in the near-term, as well as warrant much more astute assessments of specific stocks, according to some strategists.

“It is no secret that S&P 500 performance has long been very formidable over the past few calendar years, driven primarily through valuation expansion. Nevertheless, with the index P/E [price-to-earnings ratio] recently eclipsing its prior 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 work of ours, strong EPS growth will be necessary for the following leg greater. Thankfully, that’s precisely what existing expectations are forecasting. Nonetheless, we in addition discovered that these kinds of’ EPS-driven’ periods tend to be complicated from an investment strategy standpoint.”

“We believe that the’ easy cash days’ are more than for the time being and investors will have to tighten up their focus by evaluating the merits of specific stocks, rather than chasing the momentum laden practices that have just recently dominated the investment landscape,” he added.

4:00 p.m. ET: Stocks end higher, S&P 500 and Nasdaq reach report closing highs
Here’s exactly where the key 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 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 environmental protections and climate change have been the most-cited political issues brought up on corporate earnings calls up to this point, based on an analysis from FactSet’s John Butters.

“In terms of government policies discussed 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 reviewed by the highest number of companies through this point in time in 2021,” Butters wrote. “Of these twenty eight firms, seventeen expressed support (or even a willingness to work with) the Biden administration on policies to greatly reduce carbon as well as greenhouse gas emissions. These 17 firms possibly discussed initiatives to minimize the own carbon of theirs as well as greenhouse gas emissions or services or goods they give to help customers and customers reduce the carbon of theirs and greenhouse gas emissions.”

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

The list of 28 firms discussing climate change and energy policy encompassed organizations from a broad array of industries, like JPMorgan Chase, United Airlines Holdings and 3M, alongside traditional oil majors as Chevron.

11:36 a.m. ET: Stocks combined, S&P 500 and Nasdaq turn positive
Here is 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 suddenly plunges to a six month lower in February: U. Michigan
U.S. consumer sentiment slid to probably the lowest level after August in February, in accordance with the Faculty 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 lacking expectations for a rise 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 under $75,000. Households with incomes in the bottom third reported major setbacks in the current finances of theirs, 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 brand new round of stimulus payments will reduce financial hardships with those with the lowest incomes. 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 is in which marketplaces 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 ever as investors pile into tech stocks: Bank of America
Stock cash 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 profit throughout the week, the firm added.

Tech stocks in turn saw their very own record week of inflows during $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. small 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, along with hopes of a strong 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 had been the main actions in markets, as of 7:16 a.m. ET Friday:

S&P 500 futures (ES=F): 3,904.00, down 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, 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 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 thirty two points or 0.1%

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