The earnings season started in earnest on Wednesday with reports from some of the largest banks in the US
Besides looking at earnings per share, revenue, and future guidance, investors may just want to see weather reports.
That’s the conclusion of a research paper, which found that weather conditions near a company’s large institutional investors influence the stock market’s response to that news.
Researchers led by Danling Jiang, a professor at Stony Brook University, said unpleasant weather could trigger physiological and psychological responses in these investors, leading to information processing. delay, resulting in a slower price response to income announcements. They checked weather for two weeks prior to earnings announcement, for a company’s 10 largest institutional investors.
Looking at data from 1990 to 2016, they found that an increase in the standard deviation during pre-publication unpleasant weather resulted in 45 basis points, or 10%, a smaller difference between the above surprises. and under. They also noticed a decrease in trading activity during unpleasant weather.
That is not exaggeration of the impact. When the chart of average cumulative anomalies shows, investors should recognize bad weather and better earnings news than vice versa. Also, it seems that what the weather is like at the company that reports earnings doesn’t matter – it’s just that of the company’s big investors.
Jiang and her co-authors are not the first to study the effects of weather on the stock market. A study from 1993 found market returns on cloudy New York City days were significantly lower than on sunny days. A 2003 study on 26 major stock markets globally showed that sunny weather brings greater optimism and risk taking, while cloudy weather is the opposite.
For what it’s worth – weather across the US is 13% warmer than usual in March, according to the American Gas Association.
Another thing to keep in mind is which day of the week. Previous research has found that investors pay little attention to earnings announcements that occur on Friday.
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given the reference price of $ 250 which would set the price for the cryptocurrency exchange
at $ 65 billion. Bitcoin
up 5% on Tuesday, widening the gains and surpassing $ 64,000.
and Wells Fargo
The start of earnings season, with all three lenders beating estimates at both top and bottom returns.
Software giant SAP
has risen in Frankfurt after the lifting of the year cloud revenue guidelines. External shower bed
decline after the retailer reiterated its sales outlook and increased its stock repurchase program.
Discovery TV station
and online Chinese video platform iQiyi
may face pressure after Bloomberg News reported that Credit Suisse sold shares worth $ 2.3 billion, as the bank continues to loosen positions held by Archegos Capital Management.
There were several Federal Reserve officials speaking, including Chairman Jerome Powell, at Eastern noon, and Vice President Richard Clarida, at 3:45 pm, with Clarida possibly more important to the topic, “Federal Reserve New Framework and Transition Guidelines Based on Results. ”
European Central Bank President Christine Lagarde is speaking at a “chat by fire” event at 10am Eastern time. The Fed’s Beige book on economic anecdotes will also be released.
The market in the holding pattern
Even Johnson & Johnson
The COVID-19 vaccine delay failed to stop the S&P 500’s record 21 of the year
on Tuesday. Stock futures contracts
in the first hours the increase is higher.
10-year Treasury yield
is 1.64%, due to the bond market primarily eliminates stronger consumer price data than expected.
Ranking of states of the United States of America
asked 1,211 American adults to choose better in two states (and the District of Columbia) in a series of head-to-head games. Nothing specific better, remember you, just “better”. Hawaii scored the highest, while Alabama and Washington, DC, behind, seem to have a pretty fair rating.
France is offering the opportunity exchange old cars for electric bikes.
Alex Rodriguez, former New York Yankees legend, most recent player in 2016, and former partner of singer Jennifer Lopez, Who is?” to Anthony Edwards, young star of the Minnesota Timberwolves basketball team that Rodriguez is buying.
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