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

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 about 0.5 %, even though the Dow finished only 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 1 % and guide back out of a record extremely high, after the company posted a surprise quarterly benefit and grew Disney+ streaming subscribers 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 past couple weeks, investors have absorbed a bevy of stronger than expected earnings results, with company earnings rebounding faster than expected regardless of the ongoing pandemic. With over eighty % of businesses 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, 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 substantially more powerful than we might have dreamed when the pandemic for starters took hold.”

Stocks have continued to set up new record highs against this backdrop, and as fiscal and monetary policy assistance stay strong. But as investors become accustomed to firming corporate functionality, businesses could possibly have to top even bigger expectations in order to be rewarded. This could in turn put some pressure on the broader market in the near term, and also warrant much more astute assessments of individual stocks, in accordance with some strategists.

“It is actually no secret that S&P 500 performance has long been pretty strong over the past several calendar years, driven mainly via valuation expansion. Nevertheless, with the index P/E [price-to-earnings ratio] recently eclipsing its prior dot-com extremely high, we believe 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 work of ours, strong EPS growth is going to be necessary for the next leg greater. Fortunately, that is precisely what existing expectations are forecasting. Nonetheless, we also found that these kinds of’ EPS-driven’ periods tend to be 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, instead of chasing the momentum-laden methods which 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 is where the key 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 signifies 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 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 (28), tax policy (twenty COVID-19 and) policy (19) have been cited or discussed by probably the highest number of businesses through this point in time in 2021,” Butters wrote. “Of these twenty eight companies, 17 expressed support (or a willingness to work with) the Biden administration on policies to reduce carbon and greenhouse gas emissions. These seventeen corporations possibly discussed initiatives to minimize the own carbon of theirs and greenhouse gas emissions or items or services they provide to help clients and customers reduce their carbon and greenhouse gas emissions.”

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

The list of twenty eight firms discussing climate change as well as energy policy encompassed businesses from a diverse array of industries, including 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 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 unexpectedly plunges to a six month low in February: U. Michigan
U.S. consumer sentiment slid to probably the lowest level since August in February, according to the University of Michigan’s preliminary month to month 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 losing out on expectations for an increase to 80.9, according to Bloomberg consensus data.

The complete loss in 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 the present finances of theirs, with fewer of these 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 new round of stimulus payments will reduce financial hardships with those with the lowest incomes. A lot more surprising was the finding that consumers, despite the expected passage of a large 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’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 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, 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 their own record week 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 the third-largest week of theirs at $5.6 billion.

Bank of America warned that frothiness is actually rising in markets, nonetheless, as investors continue piling into stocks amid low interest rates, as well as hopes of a solid 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
Here were the main movements in markets, as of 7:16 a.m. ET Friday:

S&P 500 futures (ES=F): 3,904.00, down 8.00 points or even 0.2%

Dow futures (YM=F): 31,305.00, down 54 points or perhaps 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 yield 1.163%

6:03 p.m. ET Thursday: Stock futures tick higher
Here is where marketplaces had been trading Thursday as overnight trading kicked off:

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

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

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

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