Benzinga - by Avi Kapoor, Benzinga Staff Writer.
The CNN Money Fear and Greed index showed some improvement in overall market sentiment, while the index remained in the "Greed" zone on Friday.
U.S. stocks closed higher on Friday following the release of jobs data, but all three major indices snapped a nine-week winning streak. The S&P 500 lost 1.52%, while the Dow fell 0.59% last week.
The U.S. economy added 216,000 jobs in December versus a revised 173,000 in November, and compared to market estimates of 170,000. The unemployment rate remained unchanged at 3.7% in December, compared to market estimates of 3.8%. Average hourly earnings for all employees on US private nonfarm payrolls increased by 0.4% over a month to $34.27 for December.
However, the ISM services PMI declined to 50.6 in December, recording the weakest reading in seven months, versus November’s reading of 52.7.
Constellation Brands Inc (NYSE: STZ) posted upbeat earnings for its third quarter, while sales missed estimates.
Most sectors on the S&P 500 closed on a positive note, with financial and utilities stocks recording the biggest gains on Friday. However, consumer staples and real estate stocks bucked the overall market trend, closing the session lower.
The Dow Jones closed higher by over 25 points to 37,466.11 on Friday. The S&P 500 rose 0.18% at 4,697.24, while the Nasdaq Composite rose 0.09% at 14,524.07 during Friday’s session.
Investors are awaiting earnings results from Helen of Troy Limited (NASDAQ: HELE), Commercial Metals Company (NYSE: CMC), and Jefferies Financial Group Inc. (NYSE: JEF) today.
At a current reading of 73.7, the index remained in the "Greed" zone on Friday, versus a prior reading of 73.2.
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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