Traders More Optimistic Following Upbeat GDP Report

The CNN Money Fear and Greed index showed further improvement in overall market sentiment.

The Dow Jones closed higher on Thursday after data showed GDP increasing faster-than-expected in the third quarter. The US economy expanded an annualized 2.6% on quarter in the third quarter, beating market estimates of a 2.4% growth.

Shares of Caterpillar Inc. CAT, McDonald's Corporation MCD and Honeywell International Inc. HON moved higher after the companies reported upbeat quarterly earnings.

Some major companies, including, Exxon Mobil Corporation XOM, Chevron Corporation CVX and Colgate-Palmolive Company CL are all set to release quarterly earnings today.

The Dow rose 0.61% to close at 32,033.28 on Thursday amid gains in industrial stocks. The S&P 500 fell 0.61% to 3,807.30, while the Nasdaq Composite dipped 1.63% to settle at 10,792.67 in the previous session.

At a current reading of 58.0, the index moved to the "Greed" zone, following a previous reading of 57.0.

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.