The CNN Money Fear and Greed index showed some improvement in the overall market sentiment, while remaining in the “Extreme Greed” zone on Tuesday. This index is a measure of the current market sentiment, based on the premise that higher fear exerts pressure on stock prices, while higher greed has the opposite effect. It is calculated based on seven equal-weighted indicators and ranges from 0 to 100, where 0 represents maximum fear and 100 signals maximum greediness.
On Tuesday, U.S. stocks closed mixed, with the S&P 500 ending the session with modest gains, while the Dow Jones index settled lower. The J.M. Smucker Company (SJM) posted better-than-expected earnings for its fourth quarter, while Macy’s Inc (M) reported mixed quarterly results and announced plans to close 150 stores. Zoom Video Communications, Inc. (ZM) reported better-than-expected fourth-quarter financial results, issued FY25 adjusted EPS guidance above estimates, and authorized a $1.5 billion stock repurchase program.
In terms of economic data, U.S. durable goods orders fell by 6.1% month-over-month in January, compared to a 0.3% decline in December. The S&P CoreLogic Case-Shiller 20-city home price index climbed by 6.1% year-over-year in December.
Most sectors on the S&P 500 closed on a positive note, with utilities and communication services recording the biggest gains on Tuesday. However, energy and healthcare stocks bucked the overall market trend, closing the session lower.
The Dow Jones closed lower by around 97 points to 38,972.41 on Tuesday, while the S&P 500 rose 0.17% at 5,078.18, and the Nasdaq Composite gained 0.37% at 16,035.30 during Tuesday’s session. Investors are now awaiting earnings results from companies like Salesforce, Inc. (CRM), HP Inc. (HPQ), Advance Auto Parts, Inc. (AAP), and The TJX Companies, Inc. (TJX).
With a current reading of 77.6, the Fear and Greed Index remained in the “Extreme Greed” zone on Tuesday, compared to a prior reading of 75.7. Investors are closely monitoring market sentiment and economic indicators to make informed decisions in the ever-changing stock market environment.
