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 about 0.5 %, even though the Dow ended just a tick above the flatline. U.S. stocks shook off earlier declines after monitoring 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 benefits to fall more than 1 % and take back from a record extremely high, after the company posted a surprise quarterly benefit and grew Disney+ streaming subscribers more than expected. Newly public company Bumble (BMBL), which started trading on the Nasdaq on Thursday, rose another seven % 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 much faster than expected regardless of the ongoing pandemic. With more than 80 % of companies 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, in accordance with an analysis by Credit Suisse analyst Jonathan Golub.
“Prompt and generous government activity mitigated the [virus-related] damage, leading to outsized economic and earnings surprises,” Golub said. “The earnings recovery has been substantially more effective than we may have thought possible when the pandemic first took hold.”
Stocks have continued to set up fresh record highs against this backdrop, and as monetary and fiscal policy assistance remain strong. But as investors become accustomed to firming corporate functionality, companies may need to top greater expectations in order to be rewarded. This could in turn put some pressure on the broader market in the near term, and warrant much more astute assessments of individual stocks, according to some strategists.
“It is actually no secret that S&P 500 performance has been extremely formidable over the past few calendar years, driven primarily via valuation development. Nevertheless, with the index P/E [price-to-earnings ratio] recently eclipsing its previous dot com 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 our work, strong EPS growth will be required for the next leg higher. Thankfully, that is precisely what existing expectations are forecasting. Nevertheless, we also realized that these kinds of’ EPS-driven’ periods tend to be tricky from an investment strategy standpoint.”
“We think 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 specific stocks, rather than chasing the momentum-laden practices that have just recently dominated the investment landscape,” he added.
4:00 p.m. ET: Stocks end higher, S&P 500 and Nasdaq reach report closing highs
Here is where the main stock indexes finished 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 signifies the first with President Joe Biden in the White House, bringing an innovative 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 so far, according to an analysis from FactSet’s John Butters.
“In terms of government policies discussed in conjunction with the Biden administration, climate change as well as energy policy (twenty eight), tax policy (20 ) and COVID-19 policy (19) have been cited or perhaps talked about by probably the highest number of companies through this point on time in 2021,” Butters wrote. “Of these twenty eight companies, 17 expressed support (or a willingness to work with) the Biden administration on policies to reduce carbon as well as greenhouse gas emissions. These seventeen corporations either discussed initiatives to minimize their own carbon as well as greenhouse gas emissions or maybe goods or services they supply to assist customers & customers reduce 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 and gas leases on federal lands (and offshore),” he added.
The list of twenty eight companies discussing climate change as well as energy policy encompassed businesses from an extensive array of industries, like JPMorgan Chase, United Airlines Holdings and 3M, alongside traditional oil majors as Chevron.
11:36 a.m. ET: Stocks mixed, 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 low in February: U. Michigan
U.S. consumer sentiment slid to the lowest level since August in February, in accordance with the Faculty of Michigan’s preliminary once a month survey, as Americans’ assessments of the path ahead for the virus-stricken economy unexpectedly grew much more grim.
The headline 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 in the bottom third reported significant setbacks in the present finances of theirs, with fewer of these households mentioning recent income gains than whenever 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 fiscal hardships with those with probably the lowest incomes. A lot 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 compared to more month,” he added.
9:30 a.m. ET: Stocks open lower, but speed 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 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 cash just 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 during 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. smaller cap inflows saw the third largest week of theirs at $5.6 billion.
Bank of America warned that frothiness is rising in markets, however, as investors continue piling into stocks amid low interest rates, and hopes of a good recovery for the economy and corporate profits. The firm’s proprietary “Bull as well as 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
The following had been the primary 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 even 0.2%
Dow futures (YM=F): 31,305.00, down 54 points or 0.17%
Nasdaq futures (NQ=F): 13,711.25, down 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’s where marketplaces had been 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 32 points or 0.1%
Nasdaq futures (NQ=F): 13,703.5, printed 25.5 points or perhaps 0.19%