Dow Trims Losses After Trump Delays Mexico, Canada Tariffs: Greed Index Remains In 'Fear' Zone - Owens & Minor ( NYSE:OMI ), Electronic Arts ( NASDAQ:EA )

The CNN Money Fear and Greed index observed a slight uptick in market sentiment, though it remained firmly in the "Fear" zone as of Monday.

On the trading day, U.S. stocks closed lower, with the Dow Jones Industrial Average experiencing a decline of more than 100 points. This drop came in the shadow of President Donald Trump's announcement to postpone tariffs on goods from Mexico for an additional month. During the trading session, the index saw a considerable dip of as much as 665.6 points.

Owens & Minor Inc. (OMI) shares plummeted by 35% after the company revealed that its preliminary revenue forecasts for the fourth quarter and fiscal year 2024 fell below expectations. Conversely, Tyson Foods Inc. (TSN) reported first-quarter earnings for fiscal year 2025 that exceeded analysts' predictions.

In terms of economic indicators, U.S. construction spending rose by 0.5% month-over-month, leading to an annual rate of $2,192 billion in December, following a revised gain of 0.2% observed in November. Additionally, the ISM manufacturing Purchasing Managers Index (PMI) for the U.S. increased to 50.9 in January, compared to a revised figure of 49.2 in December, surpassing expectations of 49.8.

Most sectors within the S&P 500 experienced declines, particularly in consumer discretionary, information technology, and industrials. However, utilities and consumer staples managed to stand out against the negative trend by closing higher.

The Dow Jones finished the day lower by approximately 123 points at 44,421.91. The S&P 500 fell by 0.76% to close at 5,994.57, and the Nasdaq Composite decreased by 1.20%, finishing at 19,391.96.

Market participants are currently looking forward to earnings reports from companies such as Electronic Arts Inc. (EA), Pfizer Inc. (PFE), and PepsiCo Inc. (PEP) that are scheduled for release today.

Understanding the CNN Business Fear & Greed Index

The Fear & Greed Index reported a reading of 44.1 on Monday, indicating that it remains within the "Fear" territory, up from a previous reading of 40.5.

This index is designed to gauge the prevailing market sentiment, positing that higher fear levels tend to apply downward pressure on stock prices, while greater greed can lead to price increases. The index compiles seven equally weighted indicators, yielding a score that ranges from 0 to 100, where 0 signifies extreme fear and 100 represents extreme greed.

Moving Forward:

• Jim Cramer recently highlighted that while AppFolio is a strong investment choice, he expressed reservations about Summit Therapeutics, stating, “Can’t go there.”

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