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

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 finished simply 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 country.

Shares of Dow component Disney (DIS) reversed earlier gains to fall more than one % and guide back out of a record extremely high, after the company posted a surprise quarterly profit and grew Disney+ streaming prospects much more than expected. Newly public business Bumble (BMBL), which started trading on the Nasdaq on Thursday, rose another 7 % after jumping 63 % in the public debut of its.

Over the past couple weeks, investors have absorbed a bevy of stronger than expected earnings results, with corporate earnings rebounding faster than expected inspite of the ongoing pandemic. With over 80 % of companies these days having reported fourth quarter results, S&P 500 earnings per share (EPS) have topped estimates by 17 % for aggregate, and bounced back above pre-COVID levels, based on an analysis by Credit Suisse analyst Jonathan Golub.

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

Stocks have continued to set fresh record highs against this backdrop, and as monetary and fiscal policy assistance stay robust. But as investors become used to firming corporate performance, companies might have to top greater expectations to be rewarded. This may in turn put some pressure on the broader market in the near-term, as well as warrant more astute assessments of specific stocks, according to some strategists.

“It is actually no secret that S&P 500 performance has long been very strong over the past several calendar years, driven largely through valuation development. 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 job of ours, strong EPS growth is going to be necessary for the next leg greater. Fortunately, that is precisely what existing expectations are forecasting. But, we in addition found that these kinds of’ EPS-driven’ periods tend to be more challenging from an investment strategy standpoint.”

“We assume that the’ easy cash days’ are more than for the time being and investors will need to tighten up the aim of theirs by evaluating the merits of specific stocks, instead of chasing the momentum laden methods that have just 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 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’ would be the most-cited Biden policy on corporate earnings calls: FactSet
Fourth-quarter earnings season marks the first with President Joe Biden in the White House, bringing an innovative political backdrop for corporations to contemplate.

Biden’s policies around environmental protections as well as climate change have been the most cited political issues brought up on company earnings calls so far, according to an analysis from FactSet’s John Butters.

“In terms of government policies mentioned in conjunction with the Biden administration, climate change and energy policy (28), tax policy (20 COVID-19 and) policy (nineteen) have been cited or perhaps talked about by probably the highest number of companies with this point in time in 2021,” Butters wrote. “Of these 28 firms, seventeen expressed support (or a willingness to your workplace with) the Biden administration on policies to greatly reduce carbon and greenhouse gas emissions. These 17 companies both discussed initiatives to minimize their very own carbon as well as greenhouse gas emissions or maybe items or services they supply to assist clients and customers reduce the carbon of theirs and greenhouse gas emissions.”

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

The list of twenty eight firms discussing climate change as well as energy policy encompassed companies from an extensive array of industries, including JPMorgan Chase, United Airlines Holdings and 3M, alongside conventional oil majors as Chevron.

11:36 a.m. ET: Stocks combined, S&P 500 and Nasdaq turn positive
Here’s where markets 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, in accordance with the University of Michigan’s preliminary monthly survey, as Americans’ assessments of the path forward for the virus-stricken economy unexpectedly grew a lot more grim.

The title consumer sentiment index dipped to 76.2 from 79.0 in January, sharply missing 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 below $75,000. Households with incomes in the bottom third reported considerable setbacks in their present finances, with fewer of these 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 new round of stimulus payments will lessen fiscal hardships with those with the lowest incomes. Much 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 compared to last month,” he added.

9:30 a.m. ET: Stocks open lower, but speed 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 ever as investors pile into tech stocks: Bank of America
Stock funds simply discovered their largest ever week 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 money 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 their second-largest week of inflows ever at $25.1 billion, and U.S. small cap inflows saw their third largest week 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, and hopes of a solid 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 main 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 0.17%

Nasdaq futures (NQ=F): 13,711.25, printed 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 deliver 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 perhaps 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 0.19%

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