US Stocks End Lower As Investor Optimism Decreases Ahead Of Big Tech Earnings
The CNN Money Fear and Greed index showed a decline in the overall market sentiment, with the index moving to the “Neutral” zone on Tuesday.
U.S. stocks closed slightly lower on Tuesday, ahead of earnings reports from big technology companies.
Coca-Cola Company (NYSE:KO) reported better-than-expected second-quarter results and raised its guidance. GE Aerospace (NYSE:GE) reported upbeat second-quarter earnings and raised its FY24 outlook. General Motors Company (NYSE:GM) reported better-than-expected second-quarter earnings and raised its guidance.
After the closing bell, Tesla Inc. (NASDAQ:TSLA) reported weaker-than-expected earnings for its second quarter, while sales topped estimates. Alphabet Inc (NASDAQ:GOOG) (NASDAQ:GOOGL) reported upbeat earnings and sales results for its second quarter on Tuesday.
On the economic data front, the composite manufacturing index in the US Fifth District fell to -17 in July compared to a reading of -10 in June. Existing home sales declined by 5.4% from the prior month to an annualized rate of 3.89 million units for June.
Most sectors on the S&P 500 closed on a negative note, with energy, utilities and consumer staples stocks recording the biggest losses on Tuesday. However, materials and financial stocks bucked the overall market trend, closing the session higher.
The Dow Jones closed lower by around 57 points to 40,358.09 on Tuesday. The S&P 500 fell 0.16% at 5,555.74, while the Nasdaq Composite fell 0.06% at 17,997.35 during Tuesday's session.
Investors are awaiting earnings results from AT&T Inc. (NYSE:T), International Business Machines Corporation (NYSE:IBM) and GE Vernova Inc. (NYSE:GEV) today.
What is CNN Business Fear & Greed Index?
At a current reading of 55, the index moved to the “Neutral” zone on Tuesday, versus a prior reading of 56.7.
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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