When you’re just starting out in trading, one piece of advice stands out: you need stock market news. News is one of the most important catalysts in the stock market, and it’s an important tool to have in your arsenal as a successful trader. With all the different news sources available, it may be hard for new traders to sort out what news will actually move stocks. In this blog post, we’ll cover the importance of stock market news, what causes stocks to move, and how to find market moving news.
Why Do Traders Need Stock Market News?
- News can cause stock prices to change
- News provides historical context
- Ratings news can cause a temporary change
- Stay on top of sympathy movement from news
News Causes Prices to Change
The market reacts to big news—good or bad. This can affect the stocks you’re holding, or it can create big opportunities for stock trading.
Key news to watch out for includes earnings announcements, clinical trial results, and mergers and acquisitions. This guide gives you a full list of keyword searches you may want to look for.
Market News Provides Historical Context
Sometimes, you don’t want the most recent stock market news. Market news provides a historical database to see how a stock reacts to a certain type of news. Many trading styles, such as technical analysis, look at historical data in order to find patterns to make predictions on price actions.
You can look back at historical news and analyze how the ticker reacted to that type of news over the years It can also help to not be caught off guard when news breaks.
Analyst Ratings Can Cause Temporary Change
Another type of news to pay attention to is analyst ratings. These types of ratings may cause temporary price movement—signaling to you that it may be better to wait to buy, sell, or short the security.
Different types of important ratings may include:
- Buy/sell ratings
- Hold ratings
- Underperform ratings
- Outperform ratings
Read More: What do Stock Analyst Ratings Mean?
Keep Track of Sympathy Movement
Stocks can move in sympathy with news about another stock within the same/similar sector. This can be related to something like an earnings result, or an industry-wide news item like tariffs.
For example, if Pepsi has a big news drop, Coca-Cola may move alongside it.
Another example is when Schwab announced commission-free trades, several other brokers traded lower in sympathy.
How to Get Stock Market News
Many day traders and investors subscribe to a newsfeed so they never miss out on the news that is moving the markets and their portfolios. Important things to consider when weighing your options include:
- Does it provide real-time news?
- Can I customize the newsfeed?
- Can I set up real-time alerts? Can I customize the way I receive alerts?
- What other features does the service offer?
One option that hits all the consideration points is Benzinga Pro—not only does it offer real-time news, Newsfeed customization features, and real-time alerts.
Benzinga Pro also offers several other tools to help you capture market-moving catalysts such as:
News is the core of Benzinga—and our newsdesk is what powers the platform. Users can even chat directly with our newsdesk inside Benzinga Pro.
Another unique feature of Benzinga Pro includes “Why Is It Moving?” which helps traders identify why a stock is moving, especially when it’s not immediately clear as to why. With the ability to talk directly with a live support team and our newsdesk, you can get in-depth explanations of why stocks are moving the way they are.
Stop missing out on market moving news and start taking advantage of it with a free two week Benzinga Pro trial!
Stock market news is one thing that traders can’t afford to miss out on. You never know when the next big news catalyst will hit— affecting your current positions or opening up big opportunities.
Disclaimer: Benzinga is a news organization and does not provide financial advice and does not issue stock recommendations or offers to buy stock or sell any security.
Benzinga Pro is for informational purposes and should not be viewed as recommendations. Benzinga Pro will never tell you whether to buy or sell a stock. It will only inform your trading decisions. You can find our full disclaimer located here.