The data shows that over 50% of S&P 500 companies have posted their earnings, with more than 80% of them scaling analyst expectations.
The S&P 500 index hit 5,000 for the first time on Thursday, confirming a new record before falling below shortly after. The brief surge to a new all-time high came as investors reacted to multiple company earnings reports. Investors were also responding to the unemployment claims report.
The S&P 500 Record
According to MarketWatch data, the S&P 500 index closed at 4,995.06 and has climbed further by 0.06% since then to 4,997.91. The same data shows that the index has risen 4.48% over the last month and 4.78% year to date. Furthermore, investors have enjoyed 22.18% in returns over the last year.
According to LSEG data, most companies in the index reported impressive quarterly figures. The data shows that over 50% of S&P 500 companies have posted their earnings, with more than 80% of them scaling analyst expectations.
Figures from the labor market may also have added to the S&P 500’s increase. Despite general layoffs, especially among tech companies, the number of people seeking unemployment benefits fell lower than expected. Initial unemployment claims fell 9,000 for the week ended February 3, to a seasonally adjusted 218,000. This is smaller than the 22,000 economists polled by Reuters had projected. For unadjusted claims, the number fell by 21,192 to 232,727. Notable reductions in filings came in from New York, Oregon, Pennsylvania, Ohio, and California.
Names like The Walt Disney Company rose 11.5% after reporting quarterly profit that came in stronger than expected. The company’s increase came from cost-saving measures taken at its theme parks. In addition to Walt Disney, fashion giant Ralph Lauren saw its stock rise, pulling in 16.8% following impressive global holiday sales, especially in Asia.
The S&P 500 seems to be in bullish territory as it has moved above its 50-day and 200-day moving averages (MA). The percentage of stocks above both averages rose past 50% in mid-November, indicating an uptrend. A month later, nearly 90% of socks in the index had grown past the 50-day MA. Nonetheless, technical data is the primary indicator of a likely move above the 5,000. For instance, if data shows less than 50% of S&P 500 members are above their 50-day MA, another rise past 5,000 would be unlikely.
Bitcoin Rose with S&P 500
The jump in the traditional stock market has extended to crypto, with Bitcoin (BTC) pushing past the $45,000 level. This is the first time BTC is scaling $45k since the United States Securities and Exchange Commission (SEC) approved spot Bitcoin exchange-traded funds (ETFs). As of this writing, data from CoinMarketCap shows that Bitcoin is above $46,400, after rising more than 4% in 24 hours.
The rise in Bitcoin’s value could encourage more people who may still be skeptical about the ETFs. Regardless, there is general bullishness. According to financial commentator Tedtalksmacro in a recent YouTube video, Bitcoin probably would not revisit the $41,800-$42,000 level.
Institutional spot crypto exchange LMAX Digital is even more bullish.
“Technically speaking, Bitcoin has broken out of a range and could be looking for a push to a fresh yearly high through $50,000,” the company said in a note to investors.
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