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Stock market news live updates: S&P 500 rises to a fresh history 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 %, while the Dow concluded 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 country.

Shares of Dow component Disney (DIS) reversed earlier benefits to fall more than 1 % and pull back out of a record extremely high, after the company posted a surprise quarterly benefit and cultivated Disney+ streaming subscribers much more than expected. Newly public company Bumble (BMBL), which started trading on the Nasdaq on Thursday, rose another seven % after jumping sixty three % in its public debut.

Over the past couple weeks, investors have absorbed a bevy of much stronger than expected earnings benefits, with corporate profits rebounding much faster than expected inspite of the continuous pandemic. With more than eighty % of companies now having claimed fourth-quarter results, S&P 500 earnings per share (EPS) have topped estimates by 17 % in aggregate, and bounced back above pre-COVID levels, in accordance with an analysis by Credit Suisse analyst Jonathan Golub.

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

Stocks have continued to establish fresh record highs against this backdrop, and as monetary and fiscal policy support remain strong. But as investors become comfortable with firming corporate performance, companies might need to top greater expectations in order to be rewarded. This could in turn put some pressure on the broader market in the near term, as well as warrant more astute assessments of specific stocks, based on some strategists.

“It is no secret that S&P 500 performance continues to be really formidable over the past few calendar years, driven mostly via valuation expansion. But, with the index P/E [price-to-earnings ratio] recently eclipsing its prior dot com high, we believe 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 job of ours, strong EPS growth is going to be necessary for the following leg higher. Thankfully, that is exactly what present expectations are forecasting. But, we additionally found that these sorts of’ EPS-driven’ periods tend to be tricky from an investment strategy standpoint.”

“We think that the’ easy cash days’ are actually more than for the time being and investors will need to tighten up the aim of theirs by evaluating the merits of individual stocks, as opposed to chasing the momentum laden methods who have 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 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 company earnings calls: FactSet
Fourth-quarter earnings season marks the first with President Joe Biden in the White House, bringing an innovative 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 so far, according to 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 (twenty COVID-19 and) policy (19) have been cited or perhaps reviewed by probably the highest number of businesses through this point on time in 2021,” Butters wrote. “Of these twenty eight companies, 17 expressed support (or perhaps 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 goods or services they give to assist clientele and customers lower the carbon of theirs 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 28 companies discussing climate change and energy policy encompassed organizations from an extensive array of industries, including 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 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 after August in February, based on the Faculty of Michigan’s preliminary monthly survey, as Americans’ assessments of the road ahead for the virus stricken economy unexpectedly grew a lot more grim.

The headline consumer sentiment index dipped to 76.2 from 79.0 in January, sharply losing out on expectations for a surge to 80.9, based on Bloomberg consensus data.

The complete 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 considerable setbacks in the present finances of theirs, with fewer of the households mentioning latest income gains than anytime 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 bring down fiscal hardships among those with the lowest incomes. Much more shocking was the finding that customers, despite the likely passage of a large 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’s 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 actually as investors pile into tech stocks: Bank of America
Stock funds 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, based on 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 the own record week of theirs 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. small cap inflows saw their third-largest week at $5.6 billion.

Bank of America warned that frothiness is actually rising in markets, however, as investors keep on piling into stocks amid low interest rates, along with hopes of a solid recovery for the economy and corporate earnings. 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 principle 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 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 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 markets had been 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 thirty two points or perhaps 0.1%

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

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