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 about 0.5 %, even though the Dow concluded simply 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 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 one % and take back from a record high, after the company posted a surprise quarterly benefit and produced Disney+ streaming subscribers 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 older couple weeks, investors have absorbed a bevy of much stronger than expected earnings benefits, with company earnings rebounding faster than expected inspite of the ongoing pandemic. With at least 80 % of companies these days having claimed fourth quarter outcomes, 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 generous government activity mitigated the [virus related] damage, leading to outsized economic and earnings surprises,” Golub said. “The earnings recovery has been considerably more effective than we might have imagined when the pandemic first took hold.”
Stocks have continued to set up fresh record highs against this backdrop, and as fiscal and monetary policy support remain strong. But as investors come to be accustomed to firming corporate performance, companies may need to top even bigger expectations to be rewarded. This can 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 no secret that S&P 500 performance continues to be pretty formidable over the past few calendar years, driven primarily via valuation development. Nonetheless, with the index P/E [price-to-earnings ratio] recently eclipsing its prior 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 the work of ours, strong EPS growth would be required for the next leg higher. Fortunately, that is precisely what present expectations are forecasting. But, we also realized that these types of’ EPS-driven’ periods tend to be more tricky from an investment strategy standpoint.”
“We think that the’ easy money days’ are actually more than 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 strategies which have recently dominated the investment landscape,” he added.
4:00 p.m. ET: Stocks end higher, S&P 500 and Nasdaq reach record closing highs
Here’s 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 represents the first with President Joe Biden in the White House, bringing a new political backdrop for corporations to contemplate.
Biden’s policies around environmental protections and climate change have been the most-cited political issues brought up on corporate earnings calls up to this point, in accordance with an analysis from FactSet’s John Butters.
“In terms of government policies discussed in conjunction with the Biden administration, climate change and energy policy (28), tax policy (twenty ) and COVID-19 policy (19) have been cited or maybe reviewed by probably the highest number of companies with this point in time in 2021,” Butters wrote. “Of these twenty eight companies, 17 expressed support (or even a willingness to your workplace 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 own carbon and greenhouse gas emissions or services or items they supply to assist customers & customers lower their carbon and greenhouse gas emissions.”
“However, 4 companies also expressed a number of concerns about the executive order setting up a moratorium on new oil as well as gas leases on federal lands (and offshore),” he added.
The list of twenty eight firms discussing climate change and energy policy encompassed organizations from an extensive array of industries, including 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’s in which 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 suddenly plunges to a six month low in February: U. Michigan
U.S. consumer sentiment slid to probably the lowest level after August in February, according to the University 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 lacking expectations for an increase to 80.9, based on Bloomberg consensus data.
The complete loss in February was “concentrated in the Expectation Index and among 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 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 brand new round of stimulus payments will lessen financial hardships with those with the lowest incomes. More surprising was the finding that consumers, despite the likely passage of a massive 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’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 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 just 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 money 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. tiny 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 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 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
Below had been the principle 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 perhaps 0.2%
Dow futures (YM=F): 31,305.00, down fifty four points or 0.17%
Nasdaq futures (NQ=F): 13,711.25, down 17.75 points or 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 in which marketplaces had been trading Thursday as overnight trading kicked off:
S&P 500 futures (ES=F): 3,904.50, down 7.5 points or 0.19%
Dow futures (YM=F): 31,327.00, down 32 points or perhaps 0.1%
Nasdaq futures (NQ=F): 13,703.5, printed 25.5 points or even 0.19%