How To Keep Up With Stock Market News
When it comes to the stock market, there are several types of news in relation to stocks.September 27, 2022 19:58
How to Keep Up With the Latest Stock Market News
When it comes to the stock market, there are several types of news. Some of these include Deal announcements, Earnings reports, and Company issues. Others focus on Interest rate hikes. It can be difficult to sort through the many different types of news and find the relevant information. Here are some ways to keep up with the latest news.
The term "deal announcements" has multiple meanings in the corporate world. The stock market is the place where corporations make announcements. They are an important part of the corporate news cycle because they can either be good news for the company or bad. The announcements can affect both the value of a company and its stock price.
The announcement effect can cause dramatic changes in the stock price or other market values. For example, the dollar swung between gains and losses on July 19, 2018, after President Donald Trump publicly criticized the Federal Reserve for raising interest rates. In doing so, he broke a long-standing tradition of not interfering with the Federal Reserve.
Earnings reports are an important part of stock market news because they provide the general public with information about the performance of a company. These financial results are often highly volatile and can have a significant impact on stock prices. Knowing what to expect from an earnings report is essential for making a good investment decision.
Earnings reports are filed quarterly by public companies and contain three key financial statements - a balance sheet, income statement, and cash flow statement. These financial statements offer a comprehensive overview of a company's sales, expenses, and net income. Most public companies are required to file quarterly reports with the Securities and Exchange Commission (SEC). The first report, the 10-Q, details financial data for the prior three-month period.
While it's easy to get caught up in lawsuits and bad press, the real culprits behind a fast and sustained drop in a stock's price are company issues. These aren't limited to individual lawsuits against a company, either. Some of these issues are widespread, like the recent E. coli outbreak at Chipotle or the data breach at Equifax. These events generate public backlash and cloud a company's future outlook.
In addition to company issues, news about national events can also affect the stock market. For example, if the U.S. government is imposing new tariffs on imported goods, that could affect the entire market. In the same way, news about job growth or global trade wars can affect a company's stock price.
Interest rate hikes
Interest rate hikes are the latest news to keep your eye on in the financial markets. As inflation pressures continue to mount, the Federal Reserve is likely to hike rates again, most likely by a quarter percent. The market has already discounted the news, and a surprise by the Fed could send stock markets into a tailspin. The market has already priced in a 75-basis-point increase, but if the Fed surprises the market, volatility may spike. The hike would be the third of this magnitude in as many years.
Investors should note that rate hikes don't affect everyone equally. For example, financial stocks may benefit from a rate hike. Higher borrowing costs mean higher margins for lenders, while growth and technology stocks may suffer. In general, when uncertainty is high, investors tend to favor companies with solid cash flows and stable business models.
Central bank comments
Central bank comments on stock market news can be tricky to interpret. One recent announcement by the Federal Reserve raised interest rates 75 basis points, a move that was widely expected, but which was nonetheless greeted with mixed reactions from the stock market. The Fed's statement essentially said that it intends to continue raising rates for longer than previously anticipated. It wants to fight against inflation and is willing to take some pain in doing so. Until recently, the Fed sought to thread the needle between low inflation and economic strength, but it now believes that a meaningful slowdown is necessary to bring inflation down.
The Fed's chairman, Jerome Powell, said that the US needs to raise interest rates to curb inflation. That news sent US stocks into a tailspin, dumping nearly three percent. The comments come at a time when the cost of living is rising for Americans and inflation is at a four-decade high.