Investor Optimism Improves Slightly Following Jobs Data; US Stocks Record Weekly Gains

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

U.S. stocks settled mostly lower on Friday, following the release of stronger-than-expected jobs report. All the three major indices recorded gains last week, with the Dow Jones index gaining 0.29% and the S&P 500 rising around 1.32% during the week.

On the economic data front, U.S. nonfarm payrolls increased by 272,000 in May, a slowdown from April’s 165,000 and far more than the 180,000 increase anticipated by Econoday. The unemployment rate inched higher from 3.9% to 4%. Average hourly earnings rose by 4.1% year-over-year, up from 3.9% in April and below the expected 3.9% increase.

GameStop Corp. GME shares dipped more than 39% on Friday after the company released worse-than-expected first-quarter results before schedule and filed to sell up to 75 million shares.

Most sectors on the S&P 500 closed on a negative note, with utilities, materials and real estate stocks recording the biggest losses on Friday. However, financial and information technology stocks bucked the overall market trend, closing the session higher.

The Dow Jones closed lower by around 87 points to 38,798.99 on Friday. The S&P 500 fell 0.11% at 5,346.99, while the Nasdaq Composite fell 0.23% at 17,133.12 during Friday's session.

Investors are awaiting earnings results from Yext, Inc. YEXT, FuelCell Energy, Inc. FCEL and Calavo Growers, Inc. CVGW today.

At a current reading of 45.3, the index remained in the “Neutral” zone on Friday, versus a prior reading of 44.8.

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 Stocks That May Explode This Month

Market News and Data brought to you by Benzinga APIs
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsNewsPre-Market OutlookMarketsTrading IdeasCNN Business Fear & Greed Index
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!