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 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 report 9.9 % in 2020 as a virus induced recession swept the country.
Shares of Dow component Disney (DIS) reversed earlier profits to fall greater than 1 % and guide back from a record extremely high, after the company posted a surprise quarterly profit and cultivated 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 much stronger than expected earnings results, with company profits rebounding way quicker than expected inspite of the ongoing pandemic. With more than 80 % of companies right 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] injury, leading to outsized economic and earnings surprises,” Golub said. “The earnings recovery has been considerably more robust than we may have imagined when the pandemic first took hold.”
Stocks have continued to establish fresh record highs against this backdrop, and as fiscal and monetary policy assistance remain strong. But as investors become comfortable with firming corporate performance, businesses may have to top even bigger expectations in order to be rewarded. This can in turn put some pressure on the broader market in the near term, and warrant much more astute assessments of specific stocks, in accordance with some strategists.
“It is actually no secret that S&P 500 performance continues to be really formidable over the past few calendar years, driven mainly through valuation development. Nonetheless, with the index P/E [price-to-earnings ratio] recently eclipsing its prior dot-com extremely high, we think that valuation multiples will start to compress in the coming months,” BMO Capital Markets strategist Brian Belski wrote in a note Thursday. “According to our job, strong EPS growth will be important for the following leg greater. Fortunately, that’s precisely what current expectations are forecasting. But, we also found that these sorts of’ EPS-driven’ periods tend to become more tricky from an investment strategy standpoint.”
“We believe that the’ easy money days’ are actually over for the time being and investors will need to tighten up their focus by evaluating the merits of specific stocks, instead of chasing the momentum-laden methods 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’s exactly where the major 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 marks 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 thus far, according to 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 COVID-19 and) policy (19) have been cited or reviewed by probably the highest number of companies with this point on time in 2021,” Butters wrote. “Of these twenty eight companies, seventeen expressed support (or perhaps a willingness to the office with) the Biden administration on policies to greatly reduce carbon as well as greenhouse gas emissions. These 17 firms both discussed initiatives to minimize the own carbon of theirs and greenhouse gas emissions or items or services they provide to help clientele and customers lower the carbon of theirs and greenhouse gas emissions.”
“However, 4 businesses also expressed some concerns about the executive order starting a moratorium on new engine oil as well as gas leases on federal lands (and also offshore),” he added.
The list of twenty eight companies discussing climate change and energy policy encompassed businesses from a diverse array of industries, including JPMorgan Chase, United Airlines Holdings and 3M, alongside conventional oil majors as Chevron.
11:36 a.m. ET: Stocks mixed, S&P 500 and Nasdaq turn positive
Here’s where marketplaces 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 yield 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 since August in February, in accordance with the University of Michigan’s preliminary monthly survey, as Americans’ assessments of the road ahead for the virus stricken economy unexpectedly grew much more grim.
The title 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 complete loss of February was “concentrated in the Expectation Index and involving households with incomes below $75,000. Households with incomes of the bottom third reported considerable setbacks in their current finances, with fewer of these households mentioning latest income gains than whenever 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 bring down financial hardships with those with probably 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 more month,” he added.
9:30 a.m. ET: Stocks open lower, but pace toward posting weekly gains
Here’s where markets were trading just 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 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 their very own record week 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 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 the economy and corporate earnings. 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
Below had been the main actions in markets, as of 7:16 a.m. ET Friday:
S&P 500 futures (ES=F): 3,904.00, printed 8.00 points or perhaps 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 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’s where marketplaces had been trading Thursday as over night trading kicked off:
S&P 500 futures (ES=F): 3,904.50, printed 7.5 points or 0.19%
Dow futures (YM=F): 31,327.00, down thirty two points or 0.1%
Nasdaq futures (NQ=F): 13,703.5, printed 25.5 points or perhaps 0.19%