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 %, while the Dow concluded only a tick above the flatline. U.S. stocks shook off earlier declines after tracking 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 profits to fall greater than 1 % and pull back from a record high, after the company posted a surprise quarterly benefit and produced Disney+ streaming subscribers much more than expected. Newly public company Bumble (BMBL), which began trading on the Nasdaq on Thursday, rose another 7 % 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 way quicker than expected despite the ongoing pandemic. With over 80 % of businesses right now having reported fourth-quarter results, S&P 500 earnings per share (EPS) have topped estimates by 17 % in aggregate, and bounced back above pre-COVID amounts, according to 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 dreamed when the pandemic first took hold.”
Stocks have continued to set up new record highs against this backdrop, and as monetary and fiscal policy support remain strong. But as investors become accustomed to firming business functionality, businesses might need 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 individual stocks, based on some strategists.
“It is no secret that S&P 500 performance continues to be extremely formidable over the past few calendar years, driven mainly via valuation expansion. 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 work, strong EPS growth will be required for the next leg greater. Thankfully, that is precisely what existing expectations are forecasting. Nonetheless, we additionally realized that these sorts of’ EPS-driven’ periods tend to become more tricky from an investment strategy standpoint.”
“We believe that the’ easy cash days’ are over for the time being and investors will need to tighten up their focus by evaluating the merits of specific stocks, as opposed to chasing the momentum laden practices that have just 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’s where the key 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 company earnings calls: FactSet
Fourth-quarter earnings season marks the first with President Joe Biden in the White House, bringing the latest 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 so far, based on an analysis from FactSet’s John Butters.
“In terms of government policies mentioned in conjunction with the Biden administration, climate change as well as energy policy (28), tax policy (20 ) and COVID-19 policy (19) have been cited or perhaps reviewed by the highest number of businesses with this point on time in 2021,” Butters wrote. “Of these 28 firms, 17 expressed support (or perhaps a willingness to work with) the Biden administration on policies to greatly reduce carbon as well as greenhouse gas emissions. These 17 firms both discussed initiatives to minimize their very own carbon and greenhouse gas emissions or perhaps goods or services they give to support clientele and customers lower 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 as well as gas leases on federal lands (and also offshore),” he added.
The list of twenty eight firms discussing climate change and energy policy encompassed businesses from a broad array of industries, like 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 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 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 the lowest level since August in February, based on the University of Michigan’s preliminary once a month survey, as Americans’ assessments of the path forward for the virus stricken economy suddenly grew much more grim.
The headline consumer sentiment index dipped to 76.2 from 79.0 in January, sharply losing out on expectations for a rise to 80.9, based on Bloomberg consensus data.
The whole loss in February was “concentrated in the Expectation Index and involving households with incomes under $75,000. Households with incomes of the bottom third reported major setbacks in the current finances of theirs, with fewer of the 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 new round of stimulus payments will bring down fiscal hardships with those with the lowest incomes. Much more surprising was the finding that customers, despite the likely passage of a grand 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 speed toward posting weekly gains
Here is in which marketplaces had been 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 yield 1.19%
9:05 a.m. ET: Equity funds see highest weekly inflows actually as investors pile into tech stocks: Bank of America
Stock funds just simply discovered the largest-ever week of theirs of inflows for the period ended February ten, 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 at $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 their third largest week at $5.6 billion.
Bank of America warned that frothiness is actually rising in markets, nonetheless, 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 and 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
Here were the main 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 fifty four points or even 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 is in which marketplaces were trading Thursday as overnight trading kicked off:
S&P 500 futures (ES=F): 3,904.50, printed 7.5 points or even 0.19%
Dow futures (YM=F): 31,327.00, down 32 points or even 0.1%
Nasdaq futures (NQ=F): 13,703.5, printed 25.5 points or even 0.19%