Benzinga - by Lisa Levin, Benzinga Editor.
The CNN Money Fear and Greed index showed further improvement in overall market sentiment, with the index moving to the "Neutral" zone on Wednesday.
U.S. stocks closed higher on Wednesday, adding to the previous session’s gains following the release of a producer price index.
Producer prices in the U.S. declined 0.5% month-over-month in October, the most since April 2020, compared to market estimates of a 0.1% rise. Meanwhile, the NY Empire State Manufacturing Index climbed 14 points to a reading of 9.1 in November, recording the highest reading since April and versus market estimates of -2.8.
Shares of TJX Companies Inc (NYSE: TJX) fell around 3.3% on Wednesday after the company issued weak profit forecast for the fourth quarter. Target Corporation (NYSE: TGT) shares jumped around 17.8% after the company reported better-than-expected third-quarter financial results.
Most sectors on the S&P 500 closed on a positive note, with consumer staples, communication services, and financials stocks recording the biggest gains on Wednesday. However, energy and utilities stocks bucked the overall market trend, closing the session lower.
The Dow Jones closed higher by around 164 points to 34,991.21 on Wednesday. The S&P 500 rose 0.16% at 4,502.88, while the Nasdaq Composite climbed 0.07% at 14,103.84 during Tuesday’s session.
Investors are awaiting earnings results from Applied Materials, Inc. (NASDAQ: AMAT), Walmart Inc. (NYSE: WMT), and Alibaba Group Holding Limited (NYSE: BABA) today.
At a current reading of 53.4, the index remained in the "Neutral" zone on Wednesday, versus a prior reading of 50.8.
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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