Investor Optimism Falls Following Bank Earnings; Dow Down Over 100 Points

The CNN Money Fear and Greed index showed further easing in overall market sentiment, but the index remained in the "Greed" zone on Friday.

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

Investors assessed the first batch of fourth-quarter earnings, with Bank of America Corporation BAC, Citigroup Inc. C and JPMorgan Chase & Co. JPM releasing results on Friday.

Delta Air Lines Inc DAL shares fell around 9% on Friday following the release of its fourth-quarter results.

On the economic data front, producer prices in the U.S. fell 0.1% month-over-month in December, the same as in the prior month, and compared to market estimates of a 0.1% rise.

Most sectors on the S&P 500 closed on a positive note, with energy and real estate stocks recording the biggest gains on Friday. However, consumer discretionary and healthcare stocks bucked the overall market trend, closing the session lower.

The Dow Jones closed lower by around 118 points to 37,592.98 on Friday. The S&P 500 rose 0.08% at 4,783.83, while the Nasdaq Composite rose 0.02% at 14,972.76 during Friday’s session.

On the week, the major indices recorded gains, with the Dow gaining 0.34% and the S&P 500 rising 1.84%.

Investors are awaiting earnings results from The Goldman Sachs Group, Inc. GS, Morgan Stanley MS, and The PNC Financial Services Group, Inc. PNC today.

At a current reading of 70.9, the index remained in the "Greed" zone on Friday, versus a prior reading of 71.5.

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 Tech And Telecom Stocks That May Crash In January