Fear & Greed Index In 'Fear' Zone; But Dow Gains Over 100 Points
The CNN Money Fear and Greed index showed a decline in the overall market sentiment, with the index in the “Fear” zone on Tuesday.
U.S. stocks settled higher on Tuesday, with the Dow Jones index gaining more than 100 points during the session.
On the economic data front, U.S. factory orders increased by 0.7% from the prior month to $588.2 billion in April. The number of job openings fell by 296,000 from the prior month to 8.059 million for April.
Investors are awaiting the release of nonfarm payrolls report for May, due to be released on Friday.
U.S. major indices notched gains in May. The Dow gained 2.3% last month, while the S&P 500 added 4.8% in May.
Shares of Designer Brands Inc (NYSE:DBI) dipped more than 20% on Tuesday after the company reported worse-than-expected first-quarter earnings. Shares of Bath & Body Works Inc (NYSE:BBWI) fell around 13% after the company reported results for its first quarter.
Most sectors on the S&P 500 closed on a positive note, with real estate, consumer staples and information technology stocks recording the biggest gains on Tuesday. However, materials and energy stocks bucked the overall market trend, closing the session lower.
The Dow Jones closed higher by around 140 points to 38,711.29 on Tuesday. The S&P 500 rose 0.15% at 5,291.34, while the Nasdaq Composite climbed 0.17% at 16,857.05 during Tuesday's session.
Investors are awaiting earnings results from Dollar Tree, Inc. (NASDAQ:DLTR), Campbell Soup Company (NYSE:CPB) and Lululemon Athletica Inc. (NASDAQ:LULU) today.
At a current reading of 41.7, the index was in the “Fear” zone on Tuesday, versus a prior reading of 44.6.
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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