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 %, even though the Dow concluded 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 country.
Shares of Dow component Disney (DIS) reversed earlier benefits to fall greater than 1 % and take back out of a record high, after the company posted a surprise quarterly profit and grew Disney+ streaming prospects more than expected. Newly public business Bumble (BMBL), which began trading on the Nasdaq on Thursday, rose another seven % after jumping sixty three % in its public debut.
Over the past couple weeks, investors have absorbed a bevy of stronger than expected earnings results, with corporate profits rebounding faster than expected regardless of the continuous pandemic. With over eighty % of businesses these days having claimed fourth-quarter results, S&P 500 earnings per share (EPS) have topped estimates by 17 % in aggregate, and bounced back above pre-COVID amounts, in accordance with an analysis by Credit Suisse analyst Jonathan Golub.
“Prompt and generous government action mitigated the [virus-related] damage, leading to outsized economic and earnings surprises,” Golub said. “The earnings recovery has been considerably more robust than we might have thought possible when the pandemic first took hold.”
Stocks have continued to set up new record highs against this backdrop, and as fiscal and monetary policy assistance stay robust. But as investors become comfortable with firming business functionality, companies might need to top even greater expectations in order 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, based on some strategists.
“It is actually no secret that S&P 500 performance has long been pretty formidable over the past few calendar years, driven largely via valuation expansion. However, with the index P/E [price-to-earnings ratio] recently eclipsing its previous 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 our job, strong EPS growth will be necessary for the following leg greater. Fortunately, that’s exactly what current expectations are forecasting. Nevertheless, we in addition discovered that these sorts of’ EPS-driven’ periods tend to be more complicated 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 aim by evaluating the merits of specific stocks, rather than chasing the momentum laden practices who have just recently dominated the expense landscape,” he added.
4:00 p.m. ET: Stocks end higher, S&P 500 and Nasdaq reach record closing highs
Here is exactly 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’ will be the most cited Biden policy on corporate earnings calls: FactSet
Fourth-quarter earnings season marks the very first with President Joe Biden in the White House, bringing a new 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 company 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 as well as energy policy (28), tax policy (20 COVID-19 and) 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 28 companies, seventeen expressed support (or a willingness to the office with) the Biden administration on policies to reduce carbon as well as greenhouse gas emissions. These seventeen corporations possibly discussed initiatives to reduce the own carbon of theirs and greenhouse gas emissions or products or services they supply to help customers & customers reduce their carbon and greenhouse gas emissions.”
“However, four companies also expressed a number of concerns about the executive order starting a moratorium on new oil as well as gas leases on federal lands (plus offshore),” he added.
The list of twenty eight companies discussing climate change as well as energy policy encompassed companies from a broad array of industries, including JPMorgan Chase, United Airlines Holdings and 3M, alongside standard oil majors as Chevron.
11:36 a.m. ET: Stocks mixed, S&P 500 and Nasdaq turn positive
Here is in which marketplaces 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 yield 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 probably the lowest level after August in February, based on the Faculty of Michigan’s preliminary once a month 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 lacking expectations for an increase to 80.9, as reported by Bloomberg consensus data.
The entire 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 the current 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 lessen fiscal hardships with those with probably the lowest incomes. Much more shocking was the finding that consumers, despite the expected 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 pace toward posting weekly gains
Here’s in which markets were 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 discovered their largest-ever week of inflows for the period ended February ten, 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 during the week, the firm added.
Tech stocks in turn saw their own record week of inflows at $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 their third largest week at $5.6 billion.
Bank of America warned that frothiness is rising in markets, nonetheless, as investors keep piling into stocks amid low interest rates, along with hopes of a strong recovery for corporate earnings and the economy. 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
Below were the principle actions 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 fifty four points or 0.17%
Nasdaq futures (NQ=F): 13,711.25, printed 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’s in which markets were trading Thursday as overnight trading kicked off:
S&P 500 futures (ES=F): 3,904.50, printed 7.5 points or perhaps 0.19%
Dow futures (YM=F): 31,327.00, down thirty two points or perhaps 0.1%
Nasdaq futures (NQ=F): 13,703.5, printed 25.5 points or even 0.19%