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Stock market news live updates: S&P 500 rises to a fresh history closing huge

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 finished only 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 country.

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

Over the older couple weeks, investors have absorbed a bevy of stronger than expected earnings benefits, with corporate profits rebounding way quicker than expected despite the continuous pandemic. With over 80 % of companies right now having reported fourth quarter outcomes, S&P 500 earnings per share (EPS) have topped estimates by seventeen % for aggregate, and bounced back above pre-COVID amounts, in accordance with an analysis by Credit Suisse analyst Jonathan Golub.

“Prompt and generous government action mitigated the [virus related] damage, leading to outsized economic and earnings surprises,” Golub said. “The earnings recovery has been substantially more powerful than we may have dreamed 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 come to be accustomed to firming corporate functionality, companies might have to top even bigger expectations to be rewarded. This could in turn put some pressure on the broader market in the near-term, and warrant much more astute assessments of specific stocks, in accordance with some strategists.

“It is actually no secret that S&P 500 performance continues to be quite strong over the past few calendar years, driven primarily through valuation development. Nevertheless, with the index P/E [price-to-earnings ratio] recently eclipsing its prior 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 our work, strong EPS growth will be important for the following leg higher. Fortunately, that is exactly what existing expectations are forecasting. Nevertheless, we additionally realized that these sorts of’ EPS-driven’ periods tend to become more complicated from an investment strategy standpoint.”

“We think that the’ easy cash days’ are more than for the time being and investors will have to tighten up the aim of theirs by evaluating the merits of individual stocks, rather than chasing the momentum laden practices who have just 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’s 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’ is the most cited Biden policy on company earnings calls: FactSet
Fourth-quarter earnings season represents the very first with President Joe Biden in the White House, bringing the latest 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 company earnings calls so far, according to 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 (twenty COVID-19 and) policy (19) have been cited or talked about by the highest number of businesses with this point on time in 2021,” Butters wrote. “Of these 28 companies, seventeen expressed support (or a willingness to work with) the Biden administration on policies to greatly reduce carbon as well as greenhouse gas emissions. These seventeen companies both discussed initiatives to reduce the own carbon of theirs as well as greenhouse gas emissions or services or products they give to help customers and customers lower their carbon and greenhouse gas emissions.”

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

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

11:36 a.m. ET: Stocks mixed, 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 unexpectedly plunges to a six-month lower in February: U. Michigan
U.S. consumer sentiment slid to probably the lowest level after August in February, based on the Faculty of Michigan’s preliminary once a month survey, as Americans’ assessments of the road forward for the virus stricken economy suddenly grew a lot more grim.

The headline 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 of February was “concentrated in the Expectation Index and among households with incomes under $75,000. Households with incomes of the bottom third reported considerable setbacks in their current finances, 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 lessen financial hardships among those with the lowest incomes. Much more shocking was the finding that customers, despite the expected passage of a massive stimulus bill, viewed prospects for the national economy less favorably in early February than last month,” he added.

9:30 a.m. ET: Stocks open lower, but pace toward posting weekly gains
Here is in which 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 just simply discovered 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 money 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 the second largest week of theirs 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 rising in markets, nevertheless, as investors keep piling into stocks amid low interest rates, and hopes of a strong recovery for the economy and corporate earnings. 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
The following had been the principle 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 even 0.2%

Dow futures (YM=F): 31,305.00, down fifty four points or 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 in which marketplaces were trading Thursday as overnight trading kicked off:

S&P 500 futures (ES=F): 3,904.50, down 7.5 points or 0.19%

Dow futures (YM=F): 31,327.00, down 32 points or perhaps 0.1%

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

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