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Stock market news: S&P 500 rises to a fresh record closing high

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 aproximatelly 0.5 %, even though the Dow concluded simply a tick above the flatline. U.S. stocks shook off earlier declines after following 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 gains to fall greater than one % and guide back out of a record high, after the company posted a surprise quarterly profit and produced Disney+ streaming prospects more than expected. Newly public organization Bumble (BMBL), which began trading on the Nasdaq on Thursday, rose another 7 % after jumping 63 % in the public debut of its.

Over the older couple weeks, investors have absorbed a bevy of stronger than expected earnings results, with company profits rebounding way quicker than expected despite the continuous pandemic. With more than eighty % of businesses right now having reported fourth-quarter results, S&P 500 earnings per share (EPS) have topped estimates by seventeen % in aggregate, and bounced back above pre-COVID levels, in accordance with an analysis by Credit Suisse analyst Jonathan Golub.

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

Stocks have continued to set new record highs against this backdrop, and as fiscal and monetary policy assistance stay strong. But as investors become comfortable with firming corporate functionality, companies could possibly 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 much more astute assessments of specific stocks, based on some strategists.

“It is actually no secret that S&P 500 performance has been quite formidable over the past several calendar years, driven mainly via valuation expansion. However, with the index P/E [price-to-earnings ratio] recently eclipsing its prior 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 the job of ours, strong EPS growth is going to be important for the following leg greater. Fortunately, that is exactly what existing expectations are forecasting. Nevertheless, we also found that these sorts of’ EPS-driven’ periods tend to be more challenging from an investment strategy standpoint.”

“We believe that the’ easy money days’ are more than for the time being and investors will need to tighten up the focus of theirs by evaluating the merits of individual stocks, as opposed to chasing the momentum-laden practices that have just 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 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 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 as well as environmental protections have been the most-cited political issues brought up on corporate earnings calls thus far, in accordance with an analysis from FactSet’s John Butters.

“In terms of government policies mentioned in conjunction with the Biden administration, climate change and energy policy (twenty eight), tax policy (twenty ) and COVID-19 policy (nineteen) have been cited or perhaps talked about by probably the highest number of companies through this point in time in 2021,” Butters wrote. “Of these twenty eight companies, 17 expressed support (or perhaps a willingness to the office with) the Biden administration on policies to greatly reduce carbon and greenhouse gas emissions. These 17 companies possibly discussed initiatives to reduce the own carbon of theirs as well as greenhouse gas emissions or maybe services or items they provide to assist clients and customers lower the carbon of theirs and greenhouse gas emissions.”

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

The list of twenty eight companies 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’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 deliver 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 probably the lowest level after August in February, in accordance with the Faculty of Michigan’s preliminary monthly survey, as Americans’ assessments of the path forward for the virus-stricken economy suddenly grew more grim.

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

The whole loss of February was “concentrated in the Expectation Index and involving households with incomes under $75,000. Households with incomes of the bottom third reported significant setbacks in their present finances, with fewer of these households mentioning latest 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 reduce financial hardships with those with probably the lowest incomes. 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 than more month,” he added.

9:30 a.m. ET: Stocks open lower, but speed toward posting weekly gains
Here is where markets 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 funds simply saw their largest-ever week of inflows for the period ended February ten, 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 profit during 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 the second-largest week of theirs of inflows ever at $25.1 billion, and U.S. smaller cap inflows saw their third-largest week at $5.6 billion.

Bank of America warned that frothiness is actually rising in markets, nonetheless, as investors keep on piling into stocks amid low interest rates, along with hopes of a strong 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
Below were the primary moves 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 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 deliver 1.163%

6:03 p.m. ET Thursday: Stock futures tick higher
Here is 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 0.1%

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

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