The CNN Money Fear and Greed Index showed some improvement in overall market sentiment, while the index remained in the “Extreme Fear” zone on Friday.
U.S. stocks settled lower on Friday, with the Dow Jones index falling more than 1% during the session amid a rise in oil prices on fears of renewed U.S. strikes on Iran.
On the week, the S&P 500 fell 0.5%, while the Nasdaq lost 0.7%. However, the Dow rose 0.4% for the period.
On the earnings front, SLB (NYSE:SLB) shares gained around 7% after the company reported better-than-expected third-quarter financial results. American Express (NYSE:AXP) shares fell around 4% after the company released results for the third quarter.
On the economic data front, S&P Global’s flash manufacturing PMI rose to 56.0 in October, above the 55.5 expected, while services eased to 57.9 from 58.8. The University of Michigan’s final sentiment index came in at 48.0, beating the 46.3 consensus.
Most sectors on the S&P 500 closed on a negative note, with consumer staples, consumer discretionary and communication services stocks recording the biggest losses on Friday. However, energy and information technology stocks bucked the overall market trend, closing the session higher.
The Dow Jones closed lower by around 653 points to 52,215.16 on Friday. The S&P 500 dipped 0.52% to 7,623.68, while the Nasdaq Composite fell 0.21% to 25,955.34 during Friday’s session.
Investors are awaiting earnings results from Verizon Communications Inc. (NYSE:VZ), PriceSmart Inc. (NASDAQ:PSMT) and Amkor Technology Inc. (NASDAQ:AMKR) today.
What is CNN Business Fear & Greed Index?
At a current reading of 21, the index remained in the “Extreme Fear” zone on Friday, versus a prior reading of 19.
The Fear & Greed Index is a measure of the current market sentiment. It is based on the premise that higher fear exerts pressure on stock prices, while higher greed has the opposite effect. The index is calculated based on seven equally weighted indicators. The index ranges from 0 to 100, where 0 represents maximum fear and 100 signals maximum greediness.
Photo via Shutterstock
Recent Comments