The CNN Money Fear and Greed index showed some improvement in the overall market sentiment, while the index remained in the “Greed” zone on Friday.
U.S. stocks settled higher on Friday, with the Dow Jones index gaining more than 400 points during the session following the release of jobs data.
Nonfarm payrolls rose by 139,000 in May, beating consensus expectations of 130,000, according to data released Friday by the Bureau of Labor Statistics. Average hourly earnings rose 0.4% in May, the strongest monthly increase since January and ahead of the expected 0.3%. The US unemployment rate came in steady at 4.2% for May.
Shares of ABM Industries Inc. (NYSE:ABM) fell more than 9% on Friday after the company reported results for the second quarter. DocuSign Inc. (NASDAQ:DOCU) shares dipped 19% during the session following first-quarter results.
All sectors on the S&P 500 closed on a positive note, with consumer discretionary, energy and communication services stocks recording the biggest gains on Friday.
The Dow Jones closed higher by around 443 points to 42,762.87 on Friday. The S&P 500 rose 1.03% to 6,000.36, while the Nasdaq Composite climbed 1.20% to 19,529.95 during Friday’s session.
Investors are awaiting earnings results from Motorcar Parts of America Inc. (NASDAQ:MPAA), Graham Corp. (NYSE:GHM) and Casey’s General Stores Inc. (NASDAQ:CASY) today.
What is CNN Business Fear & Greed Index?
At a current reading of 63.3, the index remained in the “Greed” zone on Friday, versus a prior reading of 59.4.
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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