So while we’ll have to watch the situation closely, we expect the economic recovery to remain on track,” Jeff Buchbinder, equity strategist at LPL Financial tells Fortune. However, the lower the rank is, the more the distribution shifts to the right, implying lower novelty. These findings on changes in the distribution of the novelty measure clearly reject https://www.mercedesbenzclub.it/forum/memberlist.php?mode=viewprofile&u=107989 the notion that the results in Figure4 are driven by outliers in the novelty measure. In the case of ALERTs, we observe a jump in market activity in almost all stocks. On the other hand, none of the stocks responded much to HEADLINE news. Centene stock received a flood of price-target hikes today, following yesterday’s strong second-quarter report.
- Understanding how they work remains a great challenge to researchers in finance, economics, and statistical physics.
- Markets are mixed on Monday, as all eyes are on big tech earnings & fed meeting this week.
- It will accelerate JetBlue’s organic growth plan with more than 1,700 daily flights to more than 125 destinations in 30 countries, based on its Dec. 2022 schedule.
- Our novelty measure is closely related to the one proposed by the Thomson Reuters Corporation ().
- Market reactions to news have been extensively studied by researchers in several different fields [1–14], with some researchers attempting to construct models that capture static and/or dynamic responses to endogenous and exogenous shocks .
Third, news agencies deliver news articles as breaking news when they regard them as very important. If a news article is regarded as less important by news agencies, then it is delivered as non-breaking news and classified in our dataset as HEADLINE. Our approach to measure the novelty and topicality of news is closely related to recent studies on the application of text mining techniques to the analysis of financial market activities. Specifically, it has been shown that linguistic and statistical characteristics of news articles extracted using text mining techniques contain useful information to predict future stock price changes and trading volumes [28–33]. In the following sections, we examine the statistical laws regarding linguistic similarity among news articles, and propose measures for the novelty of a news article and for the topicality of an article. Using these two new measures, we investigated how market activity (i.e., the number of transactions, the transaction volume, volatility) respond to both novel and topical news. We found that, for a news article with high novelty, market activity sharply increased just after the news article was reported.
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On the other hand, for a news article with low novelty, we did not find any significant increase in market activity, since the market had already responded to a similar news article reported earlier. We also found that market activity responded more to news with higher topicality. Relationship between news topicality and market activity three minutes after the news. The solid lines in show the level of market activity when the topicality measure is above the average. For IBM, PFE, AAPL, YHOO in , the market activity indicator is the average of the three indicators .
As Fortune’s Bernhard Warner put it, the market has the Delta blues. We repeat this exercise using the randomized data to confirm the Forex statistical significance of the results. Note that given the definition above, the value of cosine similarity ranges between 0 and 1.
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They measure the novelty of news by counting the number of linguistically similar news articles that are found in the recent past (e.g. 12 hours, 24 hours, 3 days, etc.). Based on this method, it was shown that financial market activities respond more strongly to follow-up news than to the initial news . Unfortunately, the details on their methodology, including how they define similarity between news articles, is not made available to the public, so that we cannot directly compare it with our methodology. https://en.wikipedia.org/wiki/Foreign_exchange_market The approach we employ is to use cosine similarity between news articles reported at different points in time to construct a novelty measure. We empirically show that this novelty measure is closely correlated with stock price volatility and transaction volumes. Turning to the measure of topicality, our measure is related in some sense to the measure adopted by , which proposes to measure the importance of a news article by counting the number of retweets of a tweet mentioning the article.
The husband of House Speaker Nancy Pelosi sold more than $4 million worth of shares in software and computer-chip company Nvidia this week, publicly available financial disclosures show. The trade by Paul Pelosi was executed on July 26, when he sold 25,000 shares at an average price of $165.05 per share, for a total loss of $341,365. Last week, it was disclosed that Paul Pelosi had exercised call options for as much as $5 million worth of Nvidia Forex stock ahead of deliberations in Congress about a bill that would boost the U.S. semiconductor industry. Interestingly, investors took the update to their stride, with the S&P 500, the Dow, and the Nasdaq 100 rising 2.62%, 1.37%, and 4.26%, respectively, at the end of the regular trading session Wednesday. This surge comes as a surprise as investors had been deeply concerned about the aggressive hikes pushing the economy into a recession.