Benzinga - by Lisa Levin, Benzinga Editor.
The CNN Money Fear and Greed index showed further easing in the overall fear level, but remained in the "Fear" zone on Tuesday.
The Dow Jones closed higher by more than 200 points, snapping a four-session losing streak on Tuesday as investors assessed recent corporate earnings reports.
The Coca-Cola Company (NYSE: KO) reported better-than-expected third-quarter financial results and raised full-year guidance. General Motors Company (NYSE: GM) reported stronger-than-expected results for its third quarter.
As far as the earnings season is concerned, around 23% of the S&P 500 companies have released quarterly results so far, with around 77% of those exceeding market estimates.
On the economic data front, the S&P Global manufacturing PMI for the US increased to 50 in October from 49.8 in the prior month and topping market expectations of 49.5. Services PMI also rose to 50.9 in October versus 50.1 a month ago.
Most sectors on the S&P 500 closed on a positive note, with utilities and communication services stocks recording the biggest gains on Tuesday. However, energy stocks bucked the overall market trend, closing the session lower.
The Dow Jones closed higher by around 205 points to 33,141.38 on Tuesday. The S&P 500 rose 0.73% at 4,247.68, while the Nasdaq Composite rose 0.93% at 13,139.88 during Tuesday’s session.
Investors are awaiting earnings results from The Boeing Company (NYSE: BA), Meta Platforms, Inc. (NASDAQ: META) and T-Mobile US, Inc. (NASDAQ: TMUS) today.
At a current reading of 31.5, the index remained in the "Fear" zone on Tuesday, compared to a previous reading of 28.8.
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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