April 2, 2008, 12:37 pm
The Stock Market Surged Yesterday Because â¦ Why?
By Stephen J. Dubner
I may be wrong, but it strikes me that the articles that appear in nearly every newspaper every day that describe a particular dayâs stock-market movements are pretty much worthless.
They try to pin a cause or two on the effect thatâs just been observed, when in fact the effect may have little relationship with the narrow causes being credited. Consider, for instance, this A.P. headline and news brief that appeared on Yahoo! News at about 2:30 p.m. yesterday:
âStocks Surge to Start Q2″
Wall Street began the second quarter with a big rally Tuesday as investors rushed back into stocks amid optimism that the worst of the credit crisis has passed and that the economy is faring better than expected.
How does the A.P. really know that investors ârushed back into stocksâ because they were optimistic that âthe worst of the credit crisis had passedâ and that the economy is âfaring better than expectedâ?
The A.P. folks sure didnât learn this from reading their own business headlines. Here are five A.P. headlines that appeared directly beneath the stock-surge news brief.
* âCelent: 200,000 US Banking Jobs at Riskâ
* âManufacturing, Construction Weakenâ
* âFord, Toyota U.S. Sales Down in Marchâ
* âCongress Has Big Questions for Big Oilâ
* âU.B.S. Will Write Down $19 Billionâ
Here are a couple of stock-market headlines Iâd love to read one day:
âStocks Surge, Reasons Unknown; May Be Nothing More Than the Random Fluctuation of a Complex Systemâ
âStocks Dive: Three First-Movers Sold Hard and Then Everyone Else Inexplicably Followedâ
But I could probably live to 150 and never see that happen.
"today dow down 200 points God knows why"...ok bring on deal or no deal we are done for the day...