Investor Sentiment Falls Following PPI Data; US Stocks Snap 5-Week Win Streak

BY Benzinga | ECONOMIC | 02/20/24 03:00 AM EST

The CNN Money Fear and Greed index showed a decline in the overall market sentiment, while the index remained in the "Extreme Greed" zone on Friday.

U.S. stocks closed lower on Friday, with the Dow Jones index falling more than 100 points during the session.

All three major indices recorded losses last week, ending their five-week winning streaks. The S&P 500 fell by 0.42%, while the Dow lost 0.11% during the week.

On the economic data front, U.S. producer prices for final demand rose 0.3% month-over-month in January, recording the biggest rise in five months, compared to a 0.1% fall in the previous month. However, analysts were expecting a 0.1% increase in producer prices. The University of Michigan consumer sentiment rose to a reading of 79.6 in February from 79 in January.

The 10-year Treasury yield rose above the 4.3% level following the release of PPI data.

Shares of TreeHouse Foods, Inc. (THS) fell more than 15% on Friday after the company reported worse-than-expected fourth-quarter revenue results and issued an FY24 outlook below estimates. The Trade Desk, Inc. (TTD) shares climbed over 17% after the company reported mixed fourth-quarter financial results.

Most sectors on the S&P 500 closed on a negative note, with communication services, real estate and information technology stocks recording the biggest losses on Friday. However, materials and healthcare stocks bucked the overall market trend, closing the session higher.

The Dow Jones closed lower by around 145 points to 38,627.99 on Friday. The S&P 500 fell 0.48% at 5,005.57, while the Nasdaq Composite fell 0.82% at 15,775.65 during Friday's session.

Investors are awaiting earnings results from Fluor Corporation (FLR) , The Home Depot, Inc. (HD) , Palo Alto Networks, Inc. (PANW) and Walmart Inc. (WMT) today.

At a current reading of 77.3, the index remained in the "Extreme Greed" zone on Friday, versus a prior reading of 79.1.

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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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.

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