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Stock market news live updates: S&P 500 rises to a fresh record 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 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 profits to fall more than 1 % and take back out of a record high, after the company posted a surprise quarterly benefit and grew Disney+ streaming subscribers more than expected. Newly public company Bumble (BMBL), which began trading on the Nasdaq on Thursday, rose another seven % after jumping 63 % in the public debut of its.

Over the past couple weeks, investors have absorbed a bevy of stronger than expected earnings benefits, with corporate earnings rebounding much faster than expected regardless of the ongoing pandemic. With over 80 % of businesses right now having reported fourth-quarter results, S&P 500 earnings per share (EPS) have topped estimates by 17 % in aggregate, and bounced back above pre COVID levels, according to an analysis by Credit Suisse analyst Jonathan Golub.

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

Stocks have continued to establish fresh record highs against this backdrop, and as monetary and fiscal policy support stay robust. But as investors come to be comfortable with firming corporate performance, businesses could possibly have to top greater expectations in order to be rewarded. This can in turn put some pressure on the broader market in the near-term, as well as warrant much more astute assessments of specific stocks, according to some strategists.

“It is actually no secret that S&P 500 performance continues to be very strong over the past few calendar years, driven primarily through valuation development. However, with the index P/E [price-to-earnings ratio] recently eclipsing its previous dot com 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 our work, strong EPS growth would be important for the following leg higher. Fortunately, that is exactly what existing expectations are forecasting. Nonetheless, we in addition discovered that these types of’ EPS-driven’ periods tend to become more challenging from an investment strategy standpoint.”

“We assume that the’ easy money days’ are actually over for the time being and investors will have to tighten up their aim by evaluating the merits of individual stocks, rather than chasing the momentum-laden methods who have 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’s exactly 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’ is 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 brand 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 thus far, based on an analysis from FactSet’s John Butters.

“In terms of government policies discussed in conjunction with the Biden administration, climate change and energy policy (28), tax policy (20 ) and COVID-19 policy (nineteen) have been cited or maybe reviewed by probably the highest number of businesses through this point in time in 2021,” Butters wrote. “Of these 28 companies, 17 expressed support (or even a willingness to your workplace with) the Biden administration on policies to greatly reduce carbon and greenhouse gas emissions. These seventeen companies either discussed initiatives to reduce the own carbon of theirs as well as greenhouse gas emissions or services or products they give to help clients and customers reduce the carbon of theirs and greenhouse gas emissions.”

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

The list of twenty eight firms discussing climate change and energy policy encompassed organizations from an extensive 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’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 yield 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 after August in February, based on the University of Michigan’s preliminary once a month survey, as Americans’ assessments of the road forward for the virus stricken economy unexpectedly grew a lot more grim.

The headline 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 complete loss of February was “concentrated in the Expectation Index and involving households with incomes below $75,000. Households with incomes of the bottom third reported significant setbacks in their current finances, with fewer of these households mentioning recent 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 bring down financial hardships among those with probably the lowest incomes. More shocking was the finding that customers, 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 is where 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 actually 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 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 money throughout the week, the firm added.

Tech stocks in turn saw their own record week 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. tiny cap inflows saw their third largest week at $5.6 billion.

Bank of America warned that frothiness is rising in markets, however, as investors keep piling into stocks amid low interest rates, along with hopes of a strong recovery for corporate profits 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 moves in markets, as of 7:16 a.m. ET Friday:

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

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

Nasdaq futures (NQ=F): 13,711.25, down 17.75 points or perhaps 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 markets had been trading Thursday as over night trading kicked off:

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

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

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

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