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 aproximatelly 0.5 %, even though the Dow ended just 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 pull back from a record high, after the company posted a surprise quarterly profit and grew Disney+ streaming prospects much more than expected. Newly public organization Bumble (BMBL), which began trading on the Nasdaq on Thursday, rose another 7 % after jumping 63 % in its public debut.
Over the past couple weeks, investors have absorbed a bevy of stronger than expected earnings results, with company profits rebounding faster than expected regardless of the continuous pandemic. With at least eighty % of companies 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 amounts, in accordance with an analysis by Credit Suisse analyst Jonathan Golub.
“Prompt and good government action mitigated the [virus related] damage, leading to outsized economic and earnings surprises,” Golub said. “The earnings recovery has been considerably more effective than we may have thought possible when the pandemic first took hold.”
Stocks have continued to establish fresh record highs against this backdrop, and as monetary and fiscal policy support stay strong. But as investors come to be used to firming business performance, businesses might have to top greater expectations to be rewarded. This can in turn put some pressure on the broader market in the near term, as well as warrant more astute assessments of specific stocks, in accordance with some strategists.
“It is no secret that S&P 500 performance has been very powerful over the past few calendar years, driven largely via valuation development. Nonetheless, with the index P/E [price-to-earnings ratio] recently eclipsing its prior dot-com 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 the work of ours, strong EPS growth would be necessary for the following leg higher. Fortunately, that’s precisely what existing expectations are forecasting. Nonetheless, we also realized that these sorts of’ EPS-driven’ periods tend to be complicated from an investment strategy standpoint.”
“We believe that the’ easy cash days’ are actually more than for the time being and investors will need to tighten up the aim of theirs by evaluating the merits of individual stocks, rather than chasing the momentum laden practices 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 where the key 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 company earnings calls: FactSet
Fourth-quarter earnings season represents the very 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 corporate earnings calls so far, according to an analysis from FactSet’s John Butters.
“In terms of government policies talked about in conjunction with the Biden administration, climate change and energy policy (twenty eight), tax policy (20 ) and COVID-19 policy (19) have been cited or talked about by the highest number of companies through this point on time in 2021,” Butters wrote. “Of these twenty eight companies, 17 expressed support (or even a willingness to the office with) the Biden administration on policies to greatly reduce carbon as well as greenhouse gas emissions. These seventeen firms possibly discussed initiatives to reduce their very own carbon as well as greenhouse gas emissions or maybe services or items they supply to help clients and customers lower their carbon and greenhouse gas emissions.”
“However, 4 businesses 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 twenty eight companies discussing climate change and energy policy encompassed companies from a broad array of industries, like 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 in which 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 suddenly plunges to a six-month lower 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 month to month survey, as Americans’ assessments of the road ahead for the virus stricken economy suddenly grew much more grim.
The headline consumer sentiment index dipped to 76.2 from 79.0 in January, sharply lacking expectations for a surge to 80.9, as reported by Bloomberg consensus data.
The whole loss in February was “concentrated in the Expectation Index and among 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 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 lessen fiscal hardships with those with the lowest incomes. Much more surprising was the finding that customers, despite the expected passage of a large 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 where marketplaces 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 funds simply discovered 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 throughout the week, the firm added.
Tech stocks in turn saw the own record week of theirs of inflows during $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. tiny 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 on piling into stocks amid low interest rates, along with hopes of a good recovery for the economy and corporate profits. 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 had been the primary moves 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 fifty four 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 yield 1.163%
6:03 p.m. ET Thursday: Stock futures tick higher
Here is in which marketplaces were trading Thursday as over night trading kicked off:
S&P 500 futures (ES=F): 3,904.50, down 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%