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Stock market live updates: S&P 500 rises to a fresh history 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 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 more than one % and guide back out of a record high, after the company posted a surprise quarterly benefit and produced Disney+ streaming subscribers more than expected. Newly public business Bumble (BMBL), which started trading on the Nasdaq on Thursday, rose another 7 % after jumping sixty three % in its public debut.

Over the older couple weeks, investors have absorbed a bevy of stronger than expected earnings benefits, with company profits rebounding much faster than expected despite the continuous pandemic. With over eighty % of businesses right now having claimed fourth-quarter results, S&P 500 earnings per share (EPS) have topped estimates by 17 % for aggregate, and bounced back above pre-COVID levels, according to an analysis by Credit Suisse analyst Jonathan Golub.

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

Stocks have continued to establish new record highs against this backdrop, and as monetary and fiscal policy assistance remain robust. But as investors come to be comfortable with firming corporate performance, companies might have to top even greater expectations to be rewarded. This could in turn put some pressure on the broader market in the near term, and warrant more astute assessments of individual stocks, according to some strategists.

“It is actually no secret that S&P 500 performance has been very strong over the past few calendar years, driven mostly through valuation expansion. But, with the index P/E [price-to-earnings ratio] recently eclipsing its previous dot com extremely high, we think 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 is going to be necessary for the next leg greater. Thankfully, that is precisely what present expectations are forecasting. Nevertheless, we additionally discovered that these types of’ EPS-driven’ periods tend to become more complicated from an investment strategy standpoint.”

“We believe that the’ easy money days’ are actually more than for the time being and investors will have to tighten up the focus of theirs by evaluating the merits of individual stocks, as opposed to chasing the momentum-laden strategies who have 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 signifies 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 and climate change 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 ) and COVID-19 policy (19) have been cited or maybe discussed by the highest number of companies through this point in time in 2021,” Butters wrote. “Of these twenty eight firms, 17 expressed support (or a willingness to the office with) the Biden administration on policies to greatly reduce carbon and greenhouse gas emissions. These seventeen corporations both discussed initiatives to minimize the own carbon of theirs and greenhouse gas emissions or services or items they provide to help clientele & customers lower the carbon of theirs and greenhouse gas emissions.”

“However, 4 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 28 companies discussing climate change as well as energy policy encompassed companies from a broad array of industries, like JPMorgan Chase, United Airlines Holdings and 3M, alongside standard oil majors as Chevron.

11:36 a.m. ET: Stocks mixed, S&P 500 and Nasdaq turn positive
Here’s where marketplaces 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 deliver 1.185%

10:15 a.m. ET: Consumer sentiment unexpectedly 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 once a month survey, as Americans’ assessments of the road forward for the virus-stricken economy unexpectedly grew much more grim.

The headline consumer sentiment index dipped to 76.2 from 79.0 in January, sharply missing expectations for a rise to 80.9, according to 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 of the bottom third reported significant setbacks in the present finances of theirs, with fewer of the households mentioning latest income gains than anytime 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 among those with the lowest incomes. More shocking was the finding that consumers, despite the likely 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 pace toward posting weekly gains
Here’s where marketplaces 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 cash just saw the largest ever week of theirs 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. 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, however, as investors continue piling into stocks amid low interest rates, as well as hopes of a solid recovery for corporate profits 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
Here were the primary 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 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 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 in which markets had been 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 thirty two points or even 0.1%

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

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