Categories
Markets

Stock market updates: S&P 500 rises to a fresh history 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 about 0.5 %, even though the Dow ended 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 report 9.9 % in 2020 as a virus induced recession swept the country.

Shares of Dow component Disney (DIS) reversed earlier gains to fall more than one % and take back from a record high, after the company posted a surprise quarterly benefit and produced Disney+ streaming prospects much more than expected. Newly public company Bumble (BMBL), which started trading on the Nasdaq on Thursday, rose another 7 % after jumping sixty three % in the public debut of its.

Over the past couple weeks, investors have absorbed a bevy of stronger than expected earnings results, with company profits rebounding much faster than expected regardless of the continuous pandemic. With over 80 % of businesses these days 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 substantially more robust than we might have dreamed when the pandemic for starters took hold.”

Stocks have continued to set up fresh record highs against this backdrop, and as monetary and fiscal policy assistance remain robust. But as investors become comfortable with firming corporate functionality, businesses may need to top 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, based on some strategists.

“It is actually no secret that S&P 500 performance continues to be extremely strong over the past few calendar years, driven primarily through valuation expansion. But, 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 job, strong EPS growth will be necessary for the following leg higher. Thankfully, that’s precisely what current expectations are forecasting. However, we also found that these sorts of’ EPS-driven’ periods tend to become more challenging from an investment strategy standpoint.”

“We assume that the’ easy cash days’ are over 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 which have 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’ would be the most cited Biden policy on corporate 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 and environmental protections have been the most-cited political issues brought up on company earnings calls up to this point, based on 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 (20 ) and COVID-19 policy (19) have been cited or perhaps talked about by the highest number of companies through this point on 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 17 firms possibly discussed initiatives to reduce their very own carbon as well as greenhouse gas emissions or perhaps services or goods they provide to support clients and customers lower their carbon and greenhouse gas emissions.”

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

The list of twenty eight companies discussing climate change as well as energy policy encompassed organizations from an extensive array of industries, like JPMorgan Chase, United Airlines Holdings and 3M, alongside traditional oil majors like 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 suddenly plunges to a six-month lower in February: U. Michigan
U.S. consumer sentiment slid to probably the lowest level since August in February, based on the Faculty of Michigan’s preliminary once a month survey, as Americans’ assessments of the road ahead for the virus-stricken economy unexpectedly grew more grim.

The title consumer sentiment index dipped to 76.2 from 79.0 in January, sharply lacking expectations for a rise to 80.9, as reported by Bloomberg consensus data.

The entire 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 major setbacks in their present finances, 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 new round of stimulus payments will bring down fiscal hardships among those with the lowest incomes. 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 compared to more month,” he added.

9:30 a.m. ET: Stocks open lower, but speed toward posting weekly gains
Here’s in which marketplaces 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 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 simply saw their largest ever week 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 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 their second largest week 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 keep piling into stocks amid low interest rates, as well as hopes of a good recovery for corporate earnings and the economy. The firm’s proprietary “Bull and 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 had been the principle movements 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 54 points or perhaps 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’s in which marketplaces 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 perhaps 0.1%

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

Leave a Reply

Your email address will not be published. Required fields are marked *