US Stocks Close Higher with Job Data in Focus; Amazon Soars Post-Earnings

The latest reading from the CNN Money Fear and Greed index suggests an improvement in market sentiment, remaining in the "Neutral" zone on Friday. This shift indicates a balanced mix of fear and greed among investors.

U.S. stocks rose on Friday, as traders absorbed the newly released jobs data. Reports showed that the U.S. economy added only 12,000 jobs in October, a figure that was significantly lower than the revised gain of 223,000 in September and far below analysts' expectations of 113,000 jobs.

Average hourly earnings also saw an increase of 0.4% over the month, bringing the average wage to $35.46. The unemployment rate held steady at 4.1% for October, indicating stability in the job market.

Among individual stocks, shares of Amazon.com Inc. (AMZN) surged over 6% following the company's stronger-than-expected third-quarter results. Conversely, Apple Inc. (AAPL) saw its stock dip by more than 1% after reporting its own fourth-quarter earnings.

Most sectors within the S&P 500 ended the trading day in the red, with utilities, energy, and real estate stocks experiencing the largest declines. In contrast, consumer discretionary and information technology sectors showed resilience, closing higher amidst the broader market setbacks.

The Dow Jones Industrial Average finished Friday's session up about 289 points, reaching a total of 42,052.19. The S&P 500 experienced a modest rise, gaining 0.41% to close at 5,728.80, while the Nasdaq Composite was up by 0.80%, ending the day at 18,239.92.

Despite the gains on Friday, U.S. stocks struggled throughout October. The Dow dropped by 1.3%, and the overall market index, which includes the S&P 500, saw a decline of 1% during the month.

As the earnings season continues, investors are eagerly awaiting results from several companies, including Constellation Energy Corporation (CEG), Marriott International, Inc. (MAR), and Wynn Resorts, Limited (WYNN) later today.

Understanding the CNN Business Fear & Greed Index

The latest update from the Fear & Greed Index stands at 48.8, indicating it remains in the "Neutral" zone after previously recording 46.5. This index is a tool that reflects the current sentiment in the market, gauging whether investors are feeling more fear or more greed.

When the index leans towards fear, it can put downward pressure on stock prices. Conversely, higher levels of greed typically push stock prices up. The index is derived from seven different indicators, and it operates on a scale from 0 to 100—where 0 signifies maximum fear and 100 represents maximum greed.

Market Outlook

As we move forward, observing the reactions to upcoming earnings and economic indicators will be essential for investors. This period of adjustment and reflection on recent job reports will likely shape investment strategies moving ahead.

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