Investors are feeling slightly less terrified than before, but they're still pretty scared. That's the message from Tuesday's market action, where the CNN Money Fear and Greed Index edged up to 32.2 from 31.2 while staying planted in the "Fear" zone.
U.S. stocks closed mixed Tuesday, with the Dow Jones shedding over 150 points as traders positioned themselves ahead of the Federal Reserve's interest rate announcement. It's the classic pre-Fed jitters, where everyone thinks they know what's coming but nobody wants to make big moves just yet.
And what's coming seems pretty clear. The CME FedWatch tool is showing a 90% probability of a 25-basis-point rate cut at the December 10 meeting. Polymarket bettors are even more confident at 95%, signaling the market has basically decided the Fed is about to start easing monetary policy.
On the earnings front, it was a tale of two companies. AutoZone Inc. (AZO) got hammered, dropping more than 7% after the auto parts retailer missed Wall Street expectations on both earnings and sales for its first quarter. Meanwhile, Campbell's Co. (CPB) had a better day, reporting first-quarter earnings that beat analyst estimates.
The economic data added an interesting wrinkle. Job openings jumped to 7.67 million in October, exceeding expectations and calming some nerves about the labor market cooling off too quickly. It's the kind of data that suggests the economy isn't falling apart, which is good news for the soft-landing crowd.
Sector performance was all over the map. Most S&P 500 sectors finished in positive territory, with energy, information technology, and consumer staples leading the charge. But healthcare and industrials bucked the trend and closed lower.
By the closing bell, the Dow Jones had dropped about 179 points to 47,560.29. The S&P 500 slipped 0.09% to 6,840.51, while the Nasdaq Composite managed to eke out a 0.13% gain to 23,576.49.
Looking ahead, investors are waiting on earnings from Chewy Inc. (CHWY), Adobe Inc. (ADBE), and Oracle Corp. (ORCL).
