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Introduction to Understanding the News

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Learn how to separate the noise from the news. You must use the media to keep up on your investments while weeding out the nonsense.

What you will learn

  • Stock Indexes in the News
  • "Noise" versus News
  • Negative Earnings Surprises
  • Newsworthy Events

What do you know?

Introduction to Understanding the News

"The Dow fell 71 points today"

"The S&P 500 continued its recent climb"

"ABC Company missed its quarterly earnings target"

"XYZ Company’s shares jumped $2 as a result of analyst upgrades"

These are common statements you may hear on any given day as you flip past a financial news channel on your TV or scan the headlines in your newspaper. But what are the Dow and the S&P 500? What is the Nasdaq? What happens when a company misses earnings targets or gets upgraded or downgraded by analysts? What does any of this stuff mean to you, as an investor?

In this lesson, we are going to focus on building an understanding of some of the things you may typically hear in the financial news. Then we are going to learn how to separate what actually matters from what is nothing more than "noise."