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 aproximatelly 0.5 %, even though the Dow ended 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 nation.
Shares of Dow component Disney (DIS) reversed earlier benefits to fall greater than one % and pull back out of a record high, after the company posted a surprise quarterly benefit and grew Disney+ streaming prospects more than expected. Newly public company Bumble (BMBL), which began 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 much stronger than expected earnings benefits, with company earnings rebounding faster than expected regardless of the ongoing pandemic. With over eighty % of businesses right now having claimed fourth quarter outcomes, S&P 500 earnings per share (EPS) have topped estimates by 17 % in aggregate, and bounced back above pre-COVID levels, according to an analysis by Credit Suisse analyst Jonathan Golub.
“Prompt and generous government behavior mitigated the [virus-related] damage, leading to outsized economic and earnings surprises,” Golub said. “The earnings recovery has been substantially more effective than we could have dreamed when the pandemic first took hold.”
Stocks have continued to set fresh record highs against this backdrop, and as fiscal and monetary policy assistance remain strong. But as investors become comfortable with firming corporate functionality, businesses might have to top greater expectations in order to be rewarded. This could in turn put some pressure on the broader market in the near term, as well as warrant much more astute assessments of individual stocks, based on some strategists.
“It is no secret that S&P 500 performance continues to be quite formidable over the past several calendar years, driven largely through valuation development. However, with the index P/E [price-to-earnings ratio] recently eclipsing its previous 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 necessary for the following leg higher. Thankfully, that is precisely what existing expectations are forecasting. But, we also found that these kinds of’ EPS-driven’ periods tend to be tricky from an investment strategy standpoint.”
“We think that the’ easy cash days’ are over for the time being and investors will need to tighten up the focus of theirs by evaluating the merits of specific stocks, as opposed to chasing the momentum-laden strategies who have recently dominated the expense landscape,” he added.
4:00 p.m. ET: Stocks end higher, S&P 500 and Nasdaq reach history closing highs
Here is where the major 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 represents 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 so far, based on 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 COVID-19 and) policy (nineteen) have been cited or talked about by probably the highest number of businesses through this point in time in 2021,” Butters wrote. “Of these twenty eight companies, seventeen 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 17 firms both discussed initiatives to reduce their own carbon and greenhouse gas emissions or merchandise or services they supply to help customers & customers reduce the carbon of theirs and greenhouse gas emissions.”
“However, four businesses also expressed a number of concerns about the executive order setting up a moratorium on new oil and 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 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 where 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 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 probably the lowest level after August in February, according to the Faculty of Michigan’s preliminary once a month survey, as Americans’ assessments of the path ahead for the virus-stricken economy suddenly 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 entire loss in February was “concentrated in the Expectation Index and among households with incomes under $75,000. Households with incomes in the bottom third reported major setbacks in their current finances, with fewer of these households mentioning latest income gains than anytime after 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 bring down fiscal hardships among those with probably the lowest incomes. Much more shocking was the finding that customers, despite the expected passage of a grand 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 is where marketplaces had been 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 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 cash simply discovered the largest ever week of theirs of inflows for the period ended February 10, with inflows totaling a record $58.1 billion, as reported by 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 their very own record week of inflows during $5.4 billion. U.S. large cap stocks saw their second-largest week 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 rising in markets, however, as investors continue piling into stocks amid low interest rates, as well as hopes of a solid recovery for the economy and corporate earnings. 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 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 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 yield 1.163%
6:03 p.m. ET Thursday: Stock futures tick higher
Here’s where markets had been trading Thursday as overnight 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 perhaps 0.1%
Nasdaq futures (NQ=F): 13,703.5, printed 25.5 points or 0.19%