Benzinga - by Avi Kapoor, Benzinga Staff Writer.
The CNN Money Fear and Greed index showed further decline in the overall market sentiment, but the index remained in the “Neutral” zone on Thursday.
U.S. stocks settled lower on Thursday, with the Dow Jones index falling more than 300 points during the session. However, all three major indices are on course to record gains for May, with the S&P 500 gaining 4%, and the Dow adding around 0.8% this month.
On the economic data front, U.S. initial jobless claims increased by 3,000 to 219,000 in the week ending May 25, compared to market estimates of 218,000. The U.S. economy grew an annualized 1.3% in the first quarter, compared to 3.4% in the prior quarter. The U.S. trade deficit in goods increased to $99.41 billion in April following a revised $92.29 billion gap in the earlier month.
Investors are awaiting data on PCE inflation for April, which will be released today.
Shares of Salesforce Inc (NYSE:CRM) dipped around 20% on Thursday after the company reported upbeat earnings for the first quarter, while sales missed estimates. The company issued weak guidance for the second quarter.
Best Buy Co., Inc (NYSE:BBY) shares jumped over 13% after the company reported better-than-expected earnings for its fiscal first quarter. UiPath Inc. (NYSE:PATH) tumbled 34% after the company reported first-quarter earnings, issued weak revenue guidance and announced a CEO transition.
Most sectors on the S&P 500 closed on a positive note, with real estate, utilities and materials stocks recording the biggest gains on Thursday. However, information technology and communication services bucked the overall market trend, closing the session lower.
The Dow Jones closed lower by around 330 points to 38,111.48 on Thursday. The S&P 500 fell 0.60% at 5,235.48, while the Nasdaq Composite dipped 1.08% at 16,737.08 during Thursday's session.
Investors are awaiting earnings results from Genesco Inc. (NYSE:GCO) and BRP Inc. (NASDAQ:DOOO) today.
At a current reading of 45.1, the index remained in the “Neutral” zone on Thursday, versus a prior reading of 46.3.
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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