The stock market rebounded after earlier losses as concerns eased over European banks' access to funding. French banks reassured markets and investors watched for progress on Europe's debt crisis. Major U.S. stock indices ended higher, led by gains in industrial, materials and tech stocks, as signs pointed to stabilization in the markets.
This document provides an overview of covering financial markets for business and financial journalism. It discusses using Twitter to follow market news sources, the types of information needed to report on markets, and characteristics of markets like bringing together buyers and sellers. It also covers topics like market participants, price formation, types of financial markets and trading methods, and where to find different elements like causes and context for market commentary. The goal is to equip journalists with fundamental knowledge for reporting on financial markets.
This document provides an overview of derivatives markets and products. It discusses the origins and growth of derivatives, including the development of futures exchanges. The major types of derivatives are forwards, futures, options, warrants, and swaps. Forwards and futures require delivery of the underlying asset, while options provide the right but not obligation to buy or sell. Key differences between forwards and futures are highlighted. Settlement can occur through physical delivery or cash settlement. Derivatives allow market participants to hedge risk and provide economic benefits if properly handled.
This document discusses the importance of educating trading teams on options. It notes that educating teams is like planting trees that will bear fruit during boom periods by boosting business. Education provides insurance during bear markets by helping traders perform well when others face troubles. Better knowledge of teams increases customer faith and guidance. The document advocates accepting changes to remain a market leader for years to come. It outlines objectives like client satisfaction and consistent revenue. The psychology and preferred markets of dealers is discussed. Different risk scenarios, views, strategies and investor risk profiles are presented. The growth of options trading volumes over futures is highlighted. Having options products and knowledge is positioned as attracting more clients and opportunities. The benefits of FinIdeas options courses
This document provides an overview of money market securities and their use by financial institutions. It discusses various short-term debt instruments like Treasury bills, commercial paper, negotiable certificates of deposit, repurchase agreements, and bankers' acceptances. These securities generally mature within one year and are used by corporations and governments to obtain short-term funding. Financial institutions use money markets to earn returns on excess funds and maintain liquidity to meet cash needs. The value of these non-interest bearing securities is determined by the present value of future payments using the required rate of return.
Stock offerings and monitoring investo r 6Rika Hernawati
Investors participate in both the primary and secondary stock markets. In the primary market, corporations issue initial public offerings (IPOs) of stock to raise capital, while secondary stock offerings allow existing public companies to raise additional funds. The secondary market provides liquidity for investors and corporations through public stock exchanges like the NYSE and Nasdaq. Investors monitor corporations and influence them through activities like proxy voting in order to maximize the value of their stock holdings over time.
The document is a glossary of financial terms organized alphabetically from A to Z. It provides definitions for over 100 financial terms, ranging from basic terms like "asset" to more specialized terms like "Samurai bond". The definitions are brief but aim to concisely explain the essential meaning and context of each term.
PCCW reported a 20% decline in first-half net profit due to lower revenue contribution from its property development unit. Net profit fell to HK$656 million from HK$822 million a year earlier, while revenue declined 2% to HK$11.37 billion, mainly due to smaller contribution from its property development subsidiary. Revenue from PCCW's core telecommunications services rose 11% and from its broadband TV business increased 45%, but it did not offset the decline in property revenue. An analyst said net profit was below expectations due to continued investment in the TV business.
This document provides an overview of covering financial markets for business and financial journalism. It discusses using Twitter to follow market news sources, the types of information needed to report on markets, and characteristics of markets like bringing together buyers and sellers. It also covers topics like market participants, price formation, types of financial markets and trading methods, and where to find different elements like causes and context for market commentary. The goal is to equip journalists with fundamental knowledge for reporting on financial markets.
This document provides an overview of derivatives markets and products. It discusses the origins and growth of derivatives, including the development of futures exchanges. The major types of derivatives are forwards, futures, options, warrants, and swaps. Forwards and futures require delivery of the underlying asset, while options provide the right but not obligation to buy or sell. Key differences between forwards and futures are highlighted. Settlement can occur through physical delivery or cash settlement. Derivatives allow market participants to hedge risk and provide economic benefits if properly handled.
This document discusses the importance of educating trading teams on options. It notes that educating teams is like planting trees that will bear fruit during boom periods by boosting business. Education provides insurance during bear markets by helping traders perform well when others face troubles. Better knowledge of teams increases customer faith and guidance. The document advocates accepting changes to remain a market leader for years to come. It outlines objectives like client satisfaction and consistent revenue. The psychology and preferred markets of dealers is discussed. Different risk scenarios, views, strategies and investor risk profiles are presented. The growth of options trading volumes over futures is highlighted. Having options products and knowledge is positioned as attracting more clients and opportunities. The benefits of FinIdeas options courses
This document provides an overview of money market securities and their use by financial institutions. It discusses various short-term debt instruments like Treasury bills, commercial paper, negotiable certificates of deposit, repurchase agreements, and bankers' acceptances. These securities generally mature within one year and are used by corporations and governments to obtain short-term funding. Financial institutions use money markets to earn returns on excess funds and maintain liquidity to meet cash needs. The value of these non-interest bearing securities is determined by the present value of future payments using the required rate of return.
Stock offerings and monitoring investo r 6Rika Hernawati
Investors participate in both the primary and secondary stock markets. In the primary market, corporations issue initial public offerings (IPOs) of stock to raise capital, while secondary stock offerings allow existing public companies to raise additional funds. The secondary market provides liquidity for investors and corporations through public stock exchanges like the NYSE and Nasdaq. Investors monitor corporations and influence them through activities like proxy voting in order to maximize the value of their stock holdings over time.
The document is a glossary of financial terms organized alphabetically from A to Z. It provides definitions for over 100 financial terms, ranging from basic terms like "asset" to more specialized terms like "Samurai bond". The definitions are brief but aim to concisely explain the essential meaning and context of each term.
PCCW reported a 20% decline in first-half net profit due to lower revenue contribution from its property development unit. Net profit fell to HK$656 million from HK$822 million a year earlier, while revenue declined 2% to HK$11.37 billion, mainly due to smaller contribution from its property development subsidiary. Revenue from PCCW's core telecommunications services rose 11% and from its broadband TV business increased 45%, but it did not offset the decline in property revenue. An analyst said net profit was below expectations due to continued investment in the TV business.
This document provides an introduction to economic journalism. It defines economics as the study of how people deal with scarcity and make choices about allocating limited resources. Key economic concepts discussed include supply and demand, incentives, business cycles, and how governments measure and influence economic performance. The role of economic journalists is to provide context and perspective on these issues.
This document provides an overview of mergers and acquisitions (M&A), initial public offerings (IPOs), and international trade. It discusses different types of M&A deals, global M&A activity from 2004-2012, the M&A process, questions to consider in M&A deals, and valuations. It also covers the IPO process, trade terminology, arguments for and against free trade, government trade policies, and the relationship between trade and currency values.
This document provides an overview of foreign exchange and bond markets. It discusses the major global currencies and daily forex trading volumes. It also outlines factors that influence currency values such as interest rates, inflation, and trade imbalances. Additionally, it defines what bonds are, how bond markets work, and key factors like interest rates and credit ratings that affect bond prices. Yield curves and spreads are also explained as tools used in analyzing bond markets.
The banking system channels savings from individuals to borrowers. As financial intermediaries, commercial banks take deposits and make loans. They must keep a portion of deposits as reserves set by the central bank. When the reserve ratio is lower, banks can lend out more, expanding the money supply through the money multiplier effect. Non-bank financial institutions also participate in shadow banking.
This document provides an overview of financial markets for journalists. It discusses the key characteristics of markets, including that they bring together buyers and sellers, allow standardized trading of fungible products by any participant, and make trade information public. The document also summarizes the main types of financial markets like commodities, stocks, bonds and forex, and the participants, price formation processes, and factors that influence prices in these markets.
The document provides an overview of analyzing corporate profit and loss statements. It discusses key components of a P&L statement such as revenue, expenses, profit, earnings per share, and how it shows the path from revenue to net profit. It also discusses interpreting P&L statements, including checking footnotes and understanding the treatment of items like depreciation, subsidiaries versus associates, and minority interests. An example P&L statement is then presented for Hutchison Whampoa Limited to demonstrate these concepts.
The document provides an overview of international trade concepts including absolute advantage, comparative advantage, trade barriers, and trade policies. It discusses how free trade creates winners and losers between importing and exporting countries. Specifically, domestic consumers in importing countries and domestic producers in exporting countries tend to benefit from free trade, while the opposite is true for domestic consumers in exporting countries and domestic producers in importing countries. The document also outlines the effects of tariffs on prices and trade volumes.
This document provides an overview of government economic policy tools used by central banks and finance ministries. It discusses fiscal policy tools like taxation and government spending and how they can be used to stimulate or contract the economy. It also explains monetary policy tools controlled by central banks, including interest rates, required reserve ratios, and open market operations to influence money supply and achieve goals of steady growth and low inflation. Specific policy examples from the US, UK, Japan, and Europe are also mentioned.
The document discusses key economic goals of governments including full employment, steady annual growth, and stable prices. It then covers concepts of absolute and comparative advantage in determining what goods countries will produce. It provides an overview of common economic indicators used to measure economic performance such as GDP, CPI, unemployment, and money supply. It also discusses important considerations for analyzing and reporting on economic data.
The document provides an overview of key concepts for covering stock markets and shares, including:
- What a share represents in terms of ownership stake and entitlement to profits
- Factors that influence share prices such as supply and demand, the economy, and company earnings
- How share prices reflect market expectations about a company's future performance
- Tools for analyzing stocks such as indexes, sectors, market capitalization, price-earnings ratios, and technical indicators
- Sources of information like brokerage ratings and finding contextual factors behind price movements
This document provides an overview of economics concepts for journalists. It discusses three main types of corporate financial disclosures - profit and loss statements, balance sheets, and cash flow statements. When reporting on earnings, journalists should focus on net profit and revenue year-over-year changes. The document also summarizes an article about Hong Kong's Hutchison Whampoa reporting a 12% rise in profits and explains economic growth and business cycles.
Hutchison Whampoa reported a 12% rise in net profit to HK$14.17 billion in 2009, despite a 14% drop in revenue to HK$300.55 billion. Gains from property and asset sales offset losses in its energy and 3G businesses. While losses in 3G operations fell 67%, the division is still dragging on earnings. However, results from property completions and asset sales boosted profits.
The document provides an overview of covering company news as a financial journalist. It discusses why companies exist, the differences between private and public companies, and how public corporations function. It also outlines various types of corporate stories to cover, including earnings announcements, new products/business lines, executive changes, initial public offerings, and secondary fundraising. Key details on how to report on these stories such as common questions to ask and elements to include in articles are also reviewed.
This document provides an introduction to economic indicators for journalism students. It defines economic indicators as data used to evaluate the health of an economy. It discusses established indicators like the Consumer Price Index and copper prices. It also categorizes indicators as lagging, coincident, or leading in relation to economic activity. The document advises that good indicators are original, measure important economic activity accurately and consistently, and correlate closely with broader economic measures. It gives some hypothetical alternative indicators as examples from past classes.
This document provides an overview of corporations for journalism students. It discusses why companies exist, the difference between private and public companies, key industries, how public companies function, costs and profit, types of corporate stories to cover, and earnings announcements. The document is from a class on economics for journalists that focuses on reviewing supply and demand, examining the economic efficiency of gifts, and discussing corporations.
The document contains three proposals for small business profiles to cover:
1. A Chinese company called Yage Era Corp. that deletes negative posts and links online for clients and how it navigates regulations in a growing market.
2. A cat cafe in Hong Kong called The Cat Cafe that lost its restaurant license but continues operating as a cooking school with resident cats.
3. A music therapy center in Hong Kong called Pang's Music Therapy Center that offers treatments to both special needs and normal clients, and the growing but limited market for music therapy in Hong Kong.
This document provides an overview of week 2 topics from an economics course for journalists, including supply and demand. It discusses key concepts such as scarcity, opportunity costs, comparative advantage, and how supply and demand determine market prices. Government policies like rent control are also examined. An example writing assignment is given asking students to explain why a dog walker earns more than nurses based on economic concepts from class. Assessment criteria for the assignments focus on correctly applying relevant economic ideas and constructing a logical argument.
This document provides an overview of a course on global financial journalism. It discusses key themes like how everything in today's global financial system is interrelated and how business journalism isn't just about numbers but also about people. It defines what constitutes business news and explains why business journalism is important. The document outlines learning outcomes, assignments students will complete, reading assignments, the assessment process, and the course schedule. The goal is for students to learn to write different types of business news stories and analyze financial documents and events.
This document provides an introduction and overview for a course on economics for journalists. It defines economics as the study of how people deal with scarcity and make choices with trade-offs. The course will cover topics like how economies, companies, banks, markets and governments work, and economic theories. Students will write assignments, do a group project, and take a midterm and final exam. The instructor emphasizes applying economic concepts clearly and citing sources to avoid plagiarism. The first assignment is to set up an RSS reader for daily economic news and write an economic diary entry.
The document discusses initial public offerings (IPOs) and the IPO process. It explains that an IPO is the sale of shares in a private company to investors, resulting in the listing of the company on a stock exchange. The IPO process involves several steps, including announcing the intention to list, appointing an underwriter, setting an indicative price range, determining subscription levels, and finalizing the pricing before the company's shares are listed. The document provides details on these various stages to educate about fundamentals of business and financial journalism related to IPOs.
This document provides an introduction to economic journalism. It defines economics as the study of how people deal with scarcity and make choices about allocating limited resources. Key economic concepts discussed include supply and demand, incentives, business cycles, and how governments measure and influence economic performance. The role of economic journalists is to provide context and perspective on these issues.
This document provides an overview of mergers and acquisitions (M&A), initial public offerings (IPOs), and international trade. It discusses different types of M&A deals, global M&A activity from 2004-2012, the M&A process, questions to consider in M&A deals, and valuations. It also covers the IPO process, trade terminology, arguments for and against free trade, government trade policies, and the relationship between trade and currency values.
This document provides an overview of foreign exchange and bond markets. It discusses the major global currencies and daily forex trading volumes. It also outlines factors that influence currency values such as interest rates, inflation, and trade imbalances. Additionally, it defines what bonds are, how bond markets work, and key factors like interest rates and credit ratings that affect bond prices. Yield curves and spreads are also explained as tools used in analyzing bond markets.
The banking system channels savings from individuals to borrowers. As financial intermediaries, commercial banks take deposits and make loans. They must keep a portion of deposits as reserves set by the central bank. When the reserve ratio is lower, banks can lend out more, expanding the money supply through the money multiplier effect. Non-bank financial institutions also participate in shadow banking.
This document provides an overview of financial markets for journalists. It discusses the key characteristics of markets, including that they bring together buyers and sellers, allow standardized trading of fungible products by any participant, and make trade information public. The document also summarizes the main types of financial markets like commodities, stocks, bonds and forex, and the participants, price formation processes, and factors that influence prices in these markets.
The document provides an overview of analyzing corporate profit and loss statements. It discusses key components of a P&L statement such as revenue, expenses, profit, earnings per share, and how it shows the path from revenue to net profit. It also discusses interpreting P&L statements, including checking footnotes and understanding the treatment of items like depreciation, subsidiaries versus associates, and minority interests. An example P&L statement is then presented for Hutchison Whampoa Limited to demonstrate these concepts.
The document provides an overview of international trade concepts including absolute advantage, comparative advantage, trade barriers, and trade policies. It discusses how free trade creates winners and losers between importing and exporting countries. Specifically, domestic consumers in importing countries and domestic producers in exporting countries tend to benefit from free trade, while the opposite is true for domestic consumers in exporting countries and domestic producers in importing countries. The document also outlines the effects of tariffs on prices and trade volumes.
This document provides an overview of government economic policy tools used by central banks and finance ministries. It discusses fiscal policy tools like taxation and government spending and how they can be used to stimulate or contract the economy. It also explains monetary policy tools controlled by central banks, including interest rates, required reserve ratios, and open market operations to influence money supply and achieve goals of steady growth and low inflation. Specific policy examples from the US, UK, Japan, and Europe are also mentioned.
The document discusses key economic goals of governments including full employment, steady annual growth, and stable prices. It then covers concepts of absolute and comparative advantage in determining what goods countries will produce. It provides an overview of common economic indicators used to measure economic performance such as GDP, CPI, unemployment, and money supply. It also discusses important considerations for analyzing and reporting on economic data.
The document provides an overview of key concepts for covering stock markets and shares, including:
- What a share represents in terms of ownership stake and entitlement to profits
- Factors that influence share prices such as supply and demand, the economy, and company earnings
- How share prices reflect market expectations about a company's future performance
- Tools for analyzing stocks such as indexes, sectors, market capitalization, price-earnings ratios, and technical indicators
- Sources of information like brokerage ratings and finding contextual factors behind price movements
This document provides an overview of economics concepts for journalists. It discusses three main types of corporate financial disclosures - profit and loss statements, balance sheets, and cash flow statements. When reporting on earnings, journalists should focus on net profit and revenue year-over-year changes. The document also summarizes an article about Hong Kong's Hutchison Whampoa reporting a 12% rise in profits and explains economic growth and business cycles.
Hutchison Whampoa reported a 12% rise in net profit to HK$14.17 billion in 2009, despite a 14% drop in revenue to HK$300.55 billion. Gains from property and asset sales offset losses in its energy and 3G businesses. While losses in 3G operations fell 67%, the division is still dragging on earnings. However, results from property completions and asset sales boosted profits.
The document provides an overview of covering company news as a financial journalist. It discusses why companies exist, the differences between private and public companies, and how public corporations function. It also outlines various types of corporate stories to cover, including earnings announcements, new products/business lines, executive changes, initial public offerings, and secondary fundraising. Key details on how to report on these stories such as common questions to ask and elements to include in articles are also reviewed.
This document provides an introduction to economic indicators for journalism students. It defines economic indicators as data used to evaluate the health of an economy. It discusses established indicators like the Consumer Price Index and copper prices. It also categorizes indicators as lagging, coincident, or leading in relation to economic activity. The document advises that good indicators are original, measure important economic activity accurately and consistently, and correlate closely with broader economic measures. It gives some hypothetical alternative indicators as examples from past classes.
This document provides an overview of corporations for journalism students. It discusses why companies exist, the difference between private and public companies, key industries, how public companies function, costs and profit, types of corporate stories to cover, and earnings announcements. The document is from a class on economics for journalists that focuses on reviewing supply and demand, examining the economic efficiency of gifts, and discussing corporations.
The document contains three proposals for small business profiles to cover:
1. A Chinese company called Yage Era Corp. that deletes negative posts and links online for clients and how it navigates regulations in a growing market.
2. A cat cafe in Hong Kong called The Cat Cafe that lost its restaurant license but continues operating as a cooking school with resident cats.
3. A music therapy center in Hong Kong called Pang's Music Therapy Center that offers treatments to both special needs and normal clients, and the growing but limited market for music therapy in Hong Kong.
This document provides an overview of week 2 topics from an economics course for journalists, including supply and demand. It discusses key concepts such as scarcity, opportunity costs, comparative advantage, and how supply and demand determine market prices. Government policies like rent control are also examined. An example writing assignment is given asking students to explain why a dog walker earns more than nurses based on economic concepts from class. Assessment criteria for the assignments focus on correctly applying relevant economic ideas and constructing a logical argument.
This document provides an overview of a course on global financial journalism. It discusses key themes like how everything in today's global financial system is interrelated and how business journalism isn't just about numbers but also about people. It defines what constitutes business news and explains why business journalism is important. The document outlines learning outcomes, assignments students will complete, reading assignments, the assessment process, and the course schedule. The goal is for students to learn to write different types of business news stories and analyze financial documents and events.
This document provides an introduction and overview for a course on economics for journalists. It defines economics as the study of how people deal with scarcity and make choices with trade-offs. The course will cover topics like how economies, companies, banks, markets and governments work, and economic theories. Students will write assignments, do a group project, and take a midterm and final exam. The instructor emphasizes applying economic concepts clearly and citing sources to avoid plagiarism. The first assignment is to set up an RSS reader for daily economic news and write an economic diary entry.
The document discusses initial public offerings (IPOs) and the IPO process. It explains that an IPO is the sale of shares in a private company to investors, resulting in the listing of the company on a stock exchange. The IPO process involves several steps, including announcing the intention to list, appointing an underwriter, setting an indicative price range, determining subscription levels, and finalizing the pricing before the company's shares are listed. The document provides details on these various stages to educate about fundamentals of business and financial journalism related to IPOs.
2. Using Twitter for news
✤ Bloomberg Top Stories
✤ @BloombergNow
✤ Reuters Top Stories
✤ @Reuters
✤ Wall Street Journal Top Stories
✤ @WSJ
Thursday, 21 February, 13
3. Reporting on markets: what you
need
✤ Understanding of how markets work
✤ Market data
✤ Up-to-date news/info on other markets/countries
✤ Market sources
✤ Ability to explain this stuff to readers
Thursday, 21 February, 13
4. Characteristics of markets
✤ Bring together buyers (demand) & sellers (supply)
✤ Anyone (usually) can participate
✤ Products traded are standardized and units of each product are
interchangeable (fungible)
✤ Doesn’t matter who you trade with
✤ Trades are all (usually) processed by a central authority
✤ Information on all trades is public
Thursday, 21 February, 13
5. Markets: Some numbers
Prices Turnover
Volume
Index levels
Bids
Offers
Thursday, 21 February, 13
6. Markets: Some numbers
Prices are the most often cited
Prices Turnover
numbers in markets. They can
be prices of shares, bonds,
futures, or the price of a currency
as measured in another currency
Volume
Index levels
Bids
Offers
Thursday, 21 February, 13
7. Markets: Some numbers
Prices Turnover
Volume is the number of
individual units of an asset
Volume traded (usually in one day), for
Index levels
example units of shares or bonds
Bids
Offers
Thursday, 21 February, 13
8. Markets: Some numbers
Turnover is the monetary value
of a day’s trading in an asset;
Prices
basically just volume multiplied
Turnover
by the prevailing price
Volume
Index levels
Bids
Offers
Thursday, 21 February, 13
9. Markets: Some numbers
Prices Turnover
Volume
Bids are the prices that would-be
Index levels
buyers are willing to pay for an
Bids asset; these bids are shown to all
market participants
Offers
Thursday, 21 February, 13
10. Markets: Some numbers
Prices Turnover
Volume
Index levels
Bids
Offers are the prices that would-
be sellers are willing to accept
for an asset they own; offers are Offers
shown to all market participants
Thursday, 21 February, 13
11. Markets: Some numbers
Prices Turnover
Volume
Indexes measure the overall
performance of individual assets Index levels
on a market
Bids
Offers
Thursday, 21 February, 13
12. Market prices
✤ Prices in markets are news: they contain information
✤ The sum of all market participants’ – people’s – expectations of
future performance of that asset
✤ BUT, just because an asset has a low price in real terms doesn’t mean
it’s “cheap” or a bargain – or vice versa
✤ Berkshire Hathaway’s current price: US$134,584 per share
✤ PCCW Ltd.’s current price: HK$3.16 (40 US cents) per share
Thursday, 21 February, 13
17. Types of participants
Investment
Information Leverage
size
Retail investors Small Public Small
Institutional Public &
Large Large
investors Private
Public &
Governments Huge Unlimited
Private
Thursday, 21 February, 13
18. Why do they participate?
✤ To gain access to capital (funds) for new or existing ventures
✤ To put excess funds to use and earn money
✤ To hedge (insure) against risks
✤ To speculate (bet)
Thursday, 21 February, 13
19. Price formation in markets
✤ People wanting to buy make a “bid” at a certain price for a certain
amount of an asset
✤ Those wanting to sell announce an “offer” (or “ask”) price and
amount
✤ People revise their bids or offers until they find a matching offer or
bid
✤ All participants can see this information
Thursday, 21 February, 13
20. Market data
Screenshot of a Reuters 3000 terminal
Thursday, 21 February, 13
21. Market data (free!)
Screenshot of Google Finance page (finance.google.com)
Thursday, 21 February, 13
26. U.S. Stocks Advance, Erasing Earlier Loss,
Following European Bank Rally
By Rita Nazareth - Sep 13, 2011
U.S. stocks rose, sending the Standard & Poor’s 500 Index higher for a second day, as French banks
eased concerns over their access to funding and investors watched for signs of progress in taming
Change
Europe’s debt crisis.
All 10 main industries in the S&P 500 advanced as gains were led by industrial, raw material and Cause
technology companies. The Dow Jones Transportation Average, a proxy for the U.S. economy, jumped
3.4 percent as airlines rose. Wells Fargo & Co. (WFC) and Fifth Third Bancorp (FITB) added more than 1
percent, following a rally in European lenders. Aetna Inc. (AET) jumped 5.4 percent as the health insurer
said profit will probably beat its forecast.
Expectations?
The S&P 500 increased 0.9 percent to 1,172.87 at 4 p.m. in New York, after falling as much as 0.4
percent. The gauge has risen 1.6 percent in two days. The Dow Jones Industrial Average advanced 44.73
points, or 0.4 percent, to 11,105.85 today.
“Stocks are trading on the news of the day and the news was moderately favorable,” Michael Cuggino,
who oversees $15 billion at Permanent Portfolio Funds in San Francisco, said in a telephone interview. Comment
“While the issues of liquidity and health of the European banking system and the long-term viability of
the euro are still out there, today is a day where people are looking beyond that. We’ve had a big
correction. Levels really haven’t gotten back to where they were.”
The S&P 500 fell as much as 18 percent from a three-year high on April 29 through Aug. 8 on growing
concern over Europe’s debt crisis and an economic slowdown. Since then, the index has risen 4.8
percent.
Context
The S&P 500 may drop below a one-year low reached last month because too few stocks have declined
rapidly enough, according to MF Global Inc.
Future
Thursday, 21 February, 13
27. Where to find...
✤ Change: market data
✤ Cause: world/local events, market sources
✤ Expectations: news database, market sources
✤ Comment: market sources
✤ Context: market data, news database, professional experience
✤ Future: market sources, professional experience
Thursday, 21 February, 13
28. Finding “cause”
✤ Any big economic news?
✤ Any major local news?
✤ What’s happening in other markets?
✤ Look for sector-wide moves, then individual share moves
✤ Don’t always believe traders’ explanations
Thursday, 21 February, 13
29. Finding “context”
✤ Biggest advance/decline since ✤ Who’s making money and
when? who’s losing money?
✤ How many days in a row up/ ✤ Is the event cited as a cause
down? typical or atypical?
✤ How much have prices/yields ✤ Is today’s event the beginning
changed in that time? or end of a trend?
✤ Highest/lowest level since ✤ What’s at stake?
when?
✤ What happens next?
Source: The Bloomberg Way: A Guide for Reporters & Editors, 10th Edition
Thursday, 21 February, 13