Categories
Markets

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

Stocks concluded 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 %, while the Dow concluded just 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 1 % and take back out of a record high, after the company posted a surprise quarterly profit and produced Disney+ streaming subscribers more than expected. Newly public organization Bumble (BMBL), which set about trading on the Nasdaq on Thursday, rose another seven % after jumping sixty three % in its public debut.

Over the past couple weeks, investors have absorbed a bevy of stronger than expected earnings results, with corporate profits rebounding much faster than expected regardless of the ongoing pandemic. With more than 80 % of businesses 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 amounts, based on an analysis by Credit Suisse analyst Jonathan Golub.

good government behavior and “Prompt mitigated the [virus-related] injury, leading to outsized economic and earnings surprises,” Golub said. “The earnings recovery has been substantially more powerful than we could have imagined when the pandemic first took hold.”

Stocks have continued to set fresh record highs against this backdrop, and as fiscal and monetary policy support remain robust. But as investors become used to firming business performance, companies could possibly have to top greater expectations in order to be rewarded. This may in turn put some pressure on the broader market in the near term, and also warrant much more astute assessments of individual stocks, based on some strategists.

“It is actually no secret that S&P 500 performance has been quite formidable over the past several calendar years, driven mostly through valuation development. However, 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 would be necessary for the next leg higher. Thankfully, that’s exactly what current expectations are forecasting. However, we also realized that these types of’ EPS-driven’ periods tend to be more complicated from an investment strategy standpoint.”

“We think that the’ easy cash days’ are actually over for the time being and investors will have to tighten up their focus by evaluating the merits of individual stocks, instead of chasing the momentum-laden strategies that have recently dominated the expense landscape,” he added.

4:00 p.m. ET: Stocks end higher, S&P 500 and Nasdaq reach report closing highs
Here’s where the major 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 company earnings calls: FactSet
Fourth-quarter earnings season represents the very first with President Joe Biden in the White House, bringing a new 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, according to an analysis from FactSet’s John Butters.

“In terms of government policies mentioned in conjunction with the Biden administration, climate change as well as energy policy (28), tax policy (20 COVID-19 and) policy (19) have been cited or discussed by the highest number of businesses through this point in time in 2021,” Butters wrote. “Of these 28 firms, 17 expressed support (or a willingness to your workplace with) the Biden administration on policies to reduce carbon as well as greenhouse gas emissions. These 17 companies possibly discussed initiatives to minimize their own carbon and greenhouse gas emissions or services or goods they give to assist customers & customers lower the carbon of theirs and greenhouse gas emissions.”

“However, four companies also expressed a number of concerns about the executive order establishing a moratorium on new engine oil and gas leases on federal lands (and offshore),” he added.

The list of 28 firms discussing climate change and energy policy encompassed companies from a broad array of industries, including 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 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 since 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 much more grim.

The title consumer sentiment index dipped to 76.2 from 79.0 in January, sharply missing expectations for a surge to 80.9, based on Bloomberg consensus data.

The whole 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 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 brand new round of stimulus payments will lessen fiscal hardships among those with probably the lowest incomes. More surprising 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 speed toward posting weekly gains
Here’s in which 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 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 cash simply discovered 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 profit throughout 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 rising in markets, nevertheless, as investors continue piling into stocks amid low interest rates, and hopes of a strong 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 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 54 points or even 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 were trading Thursday as overnight 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 32 points or even 0.1%

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

Leave a Reply

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