Why Are Stocks Down Today
How does yahoo purport to ‘know’ why the indices fell today? and for that matter, how does anyone?
So I go to yahoo finance and the headline reads
“Wall Street Down 2 Percent on Bank Failure Worries”
followed by
“U.S. stocks sank on Tuesday on increasing worries that there could be more bank failures and concerns that equity prices may have run ahead of the economic recovery.”
How do they know that people are worried anyway? do they have people on grocery store aisles asking people if they are worried? I don’t understand, it comes off as complete hogwash to me.
While it could be hogwash, it probably is not. The reviewers and analysts will mine all news sources all day to find out what stories are published. They then compare the movements of stocks in industries and sectors to see if any movements match the stories that are published.
Steel companies in China are over supplied? Shipments of steel will be affected along with manufacturing.
Corn crops fail? Food, agriculture markets and stocks will fall.
New gold mine in production? New cheap GPS? Students going back to school? Industries related to each may rise based on news, and investors will prove that when the stock prices rise.
Banks alter quarterly reports to show worse results, and stock prices slip on banking stocks? You can bet the next news story will show worried investors bailing out of bank stocks.
Big Time Crime- Smothers Brothers Song about Wall St Fat Cat