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 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 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 profit and grew Disney+ streaming prospects much more than expected. Newly public business Bumble (BMBL), which began 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 corporate profits rebounding much faster than expected regardless of the ongoing pandemic. With more than eighty % of businesses now having reported fourth-quarter outcomes, S&P 500 earnings per share (EPS) have topped estimates by 17 % in aggregate, and bounced back above pre COVID levels, based on an analysis by Credit Suisse analyst Jonathan Golub.
generous government activity and “Prompt mitigated the [virus related] damage, leading to outsized economic and earnings surprises,” Golub said. “The earnings recovery has been considerably more powerful than we might have thought possible when the pandemic for starters took hold.”
Stocks have continued to set fresh record highs against this backdrop, and as monetary and fiscal policy support stay robust. But as investors become used to firming business functionality, companies could possibly 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, and warrant much more astute assessments of individual stocks, based on some strategists.
“It is no secret that S&P 500 performance has been very strong over the past several calendar years, driven mostly via valuation expansion. However, with the index P/E [price-to-earnings ratio] recently eclipsing its previous dot com extremely high, we believe 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 would be important for the following leg higher. Thankfully, that’s exactly what existing expectations are forecasting. But, we also discovered that these types of’ EPS-driven’ periods tend to become more complicated from an investment strategy standpoint.”
“We believe that the’ easy money days’ are over for the time being and investors will have to tighten up their aim by evaluating the merits of specific stocks, as opposed to chasing the momentum laden methods who have just recently dominated the expense landscape,” he added.
4:00 p.m. ET: Stocks end higher, S&P 500 and Nasdaq reach report closing highs
Here is 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 a brand 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 company earnings calls so far, based on an analysis from FactSet’s John Butters.
“In terms of government policies talked about in conjunction with the Biden administration, climate change and energy policy (28), tax policy (20 COVID-19 and) policy (19) have been cited or talked about by the highest number of businesses with this point in time in 2021,” Butters wrote. “Of these twenty eight companies, 17 expressed support (or a willingness to work with) the Biden administration on policies to greatly reduce carbon as well as greenhouse gas emissions. These 17 firms either discussed initiatives to reduce their very own carbon and greenhouse gas emissions or goods or services they give to help clients & customers lower the carbon of theirs and greenhouse gas emissions.”
“However, four businesses 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 firms discussing climate change and energy policy encompassed companies 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 combined, S&P 500 and Nasdaq turn positive
Here’s 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 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 the lowest level after August in February, according to the Faculty of Michigan’s preliminary month to month survey, as Americans’ assessments of the path forward for the virus-stricken economy unexpectedly grew more grim.
The title consumer sentiment index dipped to 76.2 from 79.0 in January, sharply losing out on expectations for a rise to 80.9, as reported by 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 in the bottom third reported significant setbacks in their current finances, with fewer of these households mentioning recent 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 lessen fiscal hardships among those with the lowest incomes. Much 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 more month,” he added.
9:30 a.m. ET: Stocks open lower, but speed toward posting weekly gains
Here’s where markets 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 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 simply discovered their largest-ever week of inflows for the period ended February ten, with inflows totaling a record $58.1 billion, based on 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 the own record week of theirs 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. small 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 keep piling into stocks amid low interest rates, along with hopes of a strong recovery for corporate profits 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
The following 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 0.2%
Dow futures (YM=F): 31,305.00, down 54 points or even 0.17%
Nasdaq futures (NQ=F): 13,711.25, printed 17.75 points or even 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 where markets 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 32 points or perhaps 0.1%
Nasdaq futures (NQ=F): 13,703.5, down 25.5 points or perhaps 0.19%