Benzinga - by Avi Kapoor, Benzinga Staff Writer.
The CNN Money Fear and Greed index showed further improvement in the overall market sentiment, while the index remained in the "Extreme Greed" zone on Friday.
U.S. stocks closed mostly higher on Friday, while the S&P 500 closed above the 5,000 mark for the first time. For the week, all three indices recorded their fifth consecutive weekly gain with the S&P gaining 1.4% and the Dow adding 0.04% last week.
Newell Brands Inc (NASDAQ: NWL) reported upbeat sales for its fourth quarter, but issued a weak forecast. Cloudflare, Inc. (NYSE: NET) reported better-than-expected fourth-quarter financial results and issued first-quarter guidance.
On the economic data front, the CPI in the U.S. rose 0.2% month-over-month in December, compared to a 0.3% rise initially reported, according to revised figures from the BLS.
Most sectors on the S&P 500 closed on a positive note, with information technology, consumer discretionary and communication services stocks recording the biggest gains on Friday. However, energy and consumer staples stocks bucked the overall market trend, closing the session lower.
The Dow Jones closed lower by around 55 points to 38,671.69 on Friday. The S&P 500 rose 0.57% at 5,026.61, while the Nasdaq Composite rose 1.25% at 15,990.66 during Friday’s session.
Investors are awaiting earnings results from Trimble Inc. (NASDAQ: TRMB), Avis Budget Group, Inc. (NASDAQ: CAR), The Goodyear Tire & Rubber Company (NASDAQ: GT) and Waste Management, Inc. (NYSE: WM) today.
At a current reading of 77.8, the index remained in the "Extreme Greed" zone on Friday, versus a prior reading of 76.7.
What is CNN Business Fear & Greed Index?
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 equal-weighted indicators. The index ranges from 0 to 100, where 0 represents maximum fear and 100 signals maximum greediness.
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