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Stock market live: S&P 500 rises to a fresh record 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 aproximatelly 0.5 %, while the Dow finished simply 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 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 take back from a record high, after the company posted a surprise quarterly benefit and produced Disney+ streaming prospects more than expected. Newly public business Bumble (BMBL), which set about trading on the Nasdaq on Thursday, rose another 7 % after jumping sixty three % in the public debut of its.

Over the older couple weeks, investors have absorbed a bevy of much stronger than expected earnings benefits, with corporate earnings rebounding way quicker than expected inspite of the continuous pandemic. With more than 80 % of companies these days having reported fourth quarter outcomes, 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 action and “Prompt mitigated the [virus related] injury, leading to outsized economic and earnings surprises,” Golub said. “The earnings recovery has been substantially more effective than we may have dreamed when the pandemic first took hold.”

Stocks have continued to set up 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 may have to top even greater expectations to be rewarded. This can in turn put some pressure on the broader market in the near term, and also warrant much more astute assessments of individual stocks, based on some strategists.

“It is actually no secret that S&P 500 performance has long been pretty formidable over the past several calendar years, driven mainly through valuation development. But, with the index P/E [price-to-earnings ratio] recently eclipsing its previous dot-com extremely 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 will be necessary for the next leg higher. Fortunately, that is precisely what present expectations are forecasting. However, we in addition realized that these types 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 their focus by evaluating the merits of individual stocks, instead of chasing the momentum laden practices which have just recently dominated the investment landscape,” he added.

4:00 p.m. ET: Stocks end higher, S&P 500 and Nasdaq reach record closing highs
Here is exactly where the main 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 company earnings calls: FactSet
Fourth-quarter earnings season marks the pioneer with President Joe Biden in the White House, bringing a new political backdrop for corporations to contemplate.

Biden’s policies around environmental protections as well as 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 talked about in conjunction with the Biden administration, climate change and energy policy (twenty eight), tax policy (20 ) and COVID-19 policy (19) have been cited or discussed by the highest number of companies through this point on time in 2021,” Butters wrote. “Of these twenty eight firms, seventeen expressed support (or even a willingness to your workplace with) the Biden administration on policies to reduce carbon and greenhouse gas emissions. These 17 corporations both discussed initiatives to minimize their very own carbon as well as greenhouse gas emissions or goods or services they provide to assist customers and customers reduce their carbon and greenhouse gas emissions.”

“However, 4 companies also expressed a number of concerns about the executive order establishing a moratorium on new engine oil as well as gas leases on federal lands (plus offshore),” he added.

The list of twenty eight firms discussing climate change and energy policy encompassed companies 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 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 the lowest level since August in February, according to the University of Michigan’s preliminary monthly survey, as Americans’ assessments of the path 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 missing expectations for an increase to 80.9, according to Bloomberg consensus data.

The entire 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 considerable setbacks in the current finances of theirs, with fewer of the households mentioning recent income gains than whenever since 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 lessen fiscal hardships with those with the lowest incomes. 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 more month,” he added.

9:30 a.m. ET: Stocks open lower, but speed 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 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 funds simply saw the largest ever week of theirs 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 cash throughout 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. smaller cap inflows saw the third-largest week of theirs 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 corporate earnings 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
Here 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 0.2%

Dow futures (YM=F): 31,305.00, down 54 points or 0.17%

Nasdaq futures (NQ=F): 13,711.25, down 17.75 points or even 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 marketplaces were trading Thursday as over night trading kicked off:

S&P 500 futures (ES=F): 3,904.50, printed 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 even 0.19%

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