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 aproximatelly 0.5 %, while the Dow concluded 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 benefits to fall more than 1 % and take back from a record extremely high, after the company posted a surprise quarterly benefit and cultivated Disney+ streaming prospects 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 corporate profits rebounding way quicker than expected regardless of the continuous pandemic. With at least eighty % of companies 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 activity mitigated the [virus-related] injury, leading to outsized economic and earnings surprises,” Golub said. “The earnings recovery has been substantially more powerful than we might have thought possible when the pandemic for starters took hold.”
Stocks have continued to set fresh record highs against this backdrop, and as fiscal and monetary policy support remain strong. But as investors come to be comfortable with firming business functionality, companies might need to top even greater expectations in order to be rewarded. This may in turn put some pressure on the broader market in the near-term, and warrant much more astute assessments of individual stocks, based on some strategists.
“It is no secret that S&P 500 performance has long been quite strong over the past few calendar years, driven largely through valuation development. However, with the index P/E [price-to-earnings ratio] recently eclipsing its prior dot-com extremely high, we think that valuation multiples will begin 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 required for the next leg greater. Thankfully, that is precisely what present expectations are forecasting. Nonetheless, we additionally realized that these types of’ EPS-driven’ periods tend to become more 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 their focus by evaluating the merits of individual stocks, rather than chasing the momentum laden strategies who 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 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 signifies the very first with President Joe Biden in the White House, bringing a brand new 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 so far, in accordance with an analysis from FactSet’s John Butters.
“In terms of government policies talked about in conjunction with the Biden administration, climate change as well as energy policy (28), tax policy (twenty ) and COVID-19 policy (19) have been cited or discussed by the highest number of companies 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 firms either discussed initiatives to minimize their very own carbon as well as greenhouse gas emissions or services or goods they give to help customers and customers lower the carbon of theirs and greenhouse gas emissions.”
“However, 4 companies also expressed some concerns about the executive order starting a moratorium on new oil as well as gas leases on federal lands (and also offshore),” he added.
The list of 28 companies discussing climate change and energy policy encompassed companies from a diverse array of industries, like JPMorgan Chase, United Airlines Holdings and 3M, alongside conventional oil majors like Chevron.
11:36 a.m. ET: Stocks mixed, S&P 500 and Nasdaq turn positive
Here is where markets 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 lower in February: U. Michigan
U.S. consumer sentiment slid to the lowest level after August in February, based on the Faculty of Michigan’s preliminary once a month survey, as Americans’ assessments of the path forward for the virus-stricken economy suddenly grew a lot more grim.
The headline consumer sentiment index dipped to 76.2 from 79.0 in January, sharply lacking expectations for an increase to 80.9, as reported by Bloomberg consensus data.
The complete loss in February was “concentrated in the Expectation Index and involving households with incomes below $75,000. Households with incomes in the bottom third reported significant setbacks in the current finances of theirs, 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 new round of stimulus payments will reduce financial hardships among those with probably the lowest incomes. Much 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 than more month,” he added.
9:30 a.m. ET: Stocks open lower, but pace toward posting weekly gains
Here is in which markets 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 yield 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 simply saw 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 profit throughout the week, the firm added.
Tech stocks in turn saw their very 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. smaller 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, along with hopes of a strong recovery for the economy and corporate profits. The firm’s proprietary “Bull as well as 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 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 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 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 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 thirty two points or 0.1%
Nasdaq futures (NQ=F): 13,703.5, down 25.5 points or even 0.19%