S&P 500 Notches Another Record Close Following Earnings Reports; Investor Sentiment Edges Higher, Fear & Greed Index Remains In 'Greed' Zone

The CNN Money Fear and Greed index showed a slight improvement in the overall market sentiment, while the index remained in the “Greed” zone on Tuesday.

U.S. stocks settled mixed on Tuesday, with the Dow Jones index gaining more than 150 points during the session. The S&P 500 also logged its 11th record close of the year.

The Coca-Cola Company KO on Tuesday reported better-than-expected second-quarter earnings. General Motors Company GM shares fell 8% on Tuesday after reporting a sharp drop in adjusted EBIT margins to 6.4% and a whopping $1.1 billion tariff headwind. Lockheed Martin Corp. LMT dropped around 11% on a double miss.

On the economic data front, the composite manufacturing index in the US Fifth District declined by 12 points to a reading of -20 in July, recording the lowest level in ten months.

Most sectors on the S&P 500 closed on a positive note, with health care, real estate and utilities stocks recording the biggest gains on Tuesday. However, information technology and communication services stocks bucked the overall market trend, closing the session lower.

The Dow Jones closed higher by 179 points to 44,502.44 on Tuesday. The S&P 500 gained 0.06% to 6,309.62, while the Nasdaq Composite fell 0.39% at 20,892.69 during Tuesday's session.

Investors are awaiting earnings results Tesla, Inc. TSLA, Alphabet Inc. GOOGL GOOG and AT&T Inc. T today.

At a current reading of 73, the index remained in the “Greed” zone on Tuesday, versus a prior reading of 72.7.

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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