Investor Sentiment Improves Further Following PPI Data

BY Benzinga | ECONOMIC | 11/16/23 04:59 AM EST

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 (TJX) fell around 3.3% on Wednesday after the company issued weak profit forecast for the fourth quarter. Target Corporation (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. (AMAT) , Walmart Inc. (WMT) , and Alibaba Group Holding Limited (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.

 

Read Next: Top 4 Energy Stocks That Are Preparing To Pump This Month

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

fir_news_article