Investor Optimism Edges Lower Following GDP Data

The CNN Money Fear and Greed index showed some decline in overall market sentiment, but the index remained in the "Greed" zone on Wednesday.

U.S. stocks closed mixed on Wednesday following GDP data, but the major indices remain on course to record their biggest monthly gains in 2023.

Shares of Hormel Foods Corp HRL fell around 4.6% on Wednesday after the company reported weaker-than-expected earnings for its fourth quarter on Wednesday. General Motors Company GM shares climbed more than 9% after the company reinstated 2023 earnings guidance, announced a $10 billion accelerated share repurchase program and a 33% dividend increase.

On the economic data front, the U.S. economy grew an annualized 5.2% in the third quarter, compared to 4.9% in the preliminary estimate, and higher than market estimates of 5%. The U.S. trade deficit in goods increased to $89.8 billion in October versus a revised $86.8 billion in the prior month.

Most sectors on the S&P 500 closed on a positive note, with financial and real estate stocks recording the biggest gains on Wednesday. However, communication services and energy stocks bucked the overall market trend, closing the session lower.

The Dow Jones closed higher by around 13 points to 35,430.42 on Wednesday. The S&P 500 fell 0.09% at 4,550.58, while the Nasdaq Composite fell 0.16% at 14,258.49 during Wednesday’s session.

Investors are awaiting earnings results from Cracker Barrel Old Country Store, Inc. CBRL, Big Lots, Inc. BIG, The Kroger Co. KR and Dell Technologies Inc. DELL today.

At a current reading of 63.5, the index remained in the "Greed" zone on Wednesday, versus a prior reading of 64.3.

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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