The U.S. stock market exhibited signs of optimism on Monday, with the Dow Jones Industrial Average closing over 250 points higher. This surge came amidst investor anticipation for earnings reports from major technology companies. Despite the positive performance, the overall market sentiment, as measured by the CNN Money Fear & Greed index, remained in the “Greed” zone, though it did show a slight improvement.
While both the Dow Jones and S&P 500 ended a six-week winning streak, with losses of around 1% and 2.7% respectively, the Nasdaq recorded gains for the seventh consecutive week, climbing nearly 0.2%.
Shares of Koninklijke Philips NV, a Dutch multinational conglomerate, experienced a significant drop of around 16% on Monday following the release of disappointing third-quarter earnings results.
On the economic front, the Federal Reserve Bank of Dallas’ general business activity index for manufacturing in Texas showed a rise to -3 in October, compared to a reading of -9 in September. This indicates a slight improvement in the manufacturing sector in the state.
Most sectors within the S&P 500 closed on a positive note, with financials, materials, and utilities stocks recording the most substantial gains. However, the information technology and energy sectors bucked the overall market trend, ending the session lower.
The Dow Jones closed the day at 42,387.57, the S&P 500 reached 5,823.52, and the Nasdaq Composite settled at 18,567.19.
Investors are keenly awaiting earnings reports from several prominent companies, including Pfizer Inc., Alphabet Inc., Phillips 66, and McDonald’s Corporation, which are expected to be released today.
The CNN Money Fear & Greed Index, currently at 61.7, provides insights into the prevailing market sentiment. The index operates on the principle that higher fear exerts downward pressure on stock prices, while heightened greed has the opposite effect. It is calculated using seven equal-weighted indicators, with a scale ranging from 0 to 100, where 0 represents maximum fear and 100 signifies maximum greediness.
The index’s movement provides valuable insights into the current market conditions, offering clues about the potential direction of stock prices.
