The CNN Money Fear and Greed index, which measures market sentiment, experienced a slight decline recently, moving into the “Greed” zone. This shift indicates a shift towards a more optimistic market outlook. However, the stock market itself has been experiencing mixed results, with the Nasdaq Composite recording losses for the fifth consecutive session. Since the close of December 27th, the index has fallen around 4%, following a remarkable surge of 43% throughout 2023.
In terms of individual company news, Walgreens Boots Alliance Inc posted positive earnings for its first quarter. However, the company also announced a reduction in its quarterly dividend. On the economic data front, private businesses in the U.S. added 164,000 workers in December, surpassing market expectations. Additionally, initial jobless claims fell by 18,000 to 202,000, also beating market estimates.
While most sectors on the S&P 500 closed with losses, health care and financial stocks performed well, defying the overall market trend. The Dow Jones closed slightly higher, while the S&P 500 and Nasdaq Composite experienced declines during Thursday’s session.
Investors are eagerly awaiting earnings reports from companies such as AngioDynamics, Inc., The Greenbrier Companies, Inc., and Constellation Brands, Inc. Furthermore, the U.S. jobs report for December is set to be released, with expectations of the economy adding 170,000 jobs.
Returning to the CNN Money Fear and Greed index, it currently stands at 74.5, indicating a shift towards greediness. The index is calculated based on seven equally-weighted indicators and ranges from 0 to 100, with 0 representing maximum fear and 100 representing maximum greediness.
In conclusion, market sentiment, as measured by the CNN Money Fear and Greed index, has shifted towards greed. However, the stock market itself has experienced mixed results, with some indices recording losses. Individual companies, such as Walgreens Boots Alliance Inc, have posted positive earnings but made adjustments in other areas. The upcoming earnings reports and jobs report for December will likely provide further insights into the state of the market.
