One of my favorite ways to demonstrate the idiocy of daily financial news is to check out who writes the daily grind for wires such as Reuters. Today, I randomly pulled this piece from Yahoo Finance:
NEW YORK (Reuters) – U.S. stocks fell more than 1 percent on Wednesday as mounting fears about the euro zone prompted investors to sell sectors tied to economic growth. The region’s debt woes sent investors fleeing to safe havens, like the 10-year U.S. Treasury note, whose yield fell to the lowest in 60 years. The euro, meanwhile, slid to its lowest against the U.S. dollar in 23 months. U.S. stocks have been closely tethered to the euro’s fortunes, with a 50-day correlation between the currency and the S&P 500 index at 0.91. Yields on 10-year Spanish bonds moved closer to 7 percent, a level at which other euro zone members were forced to seek a bailout. Spain is expected to issue new bonds to fund its troubled banks and troubled regions despite increased borrowing costs. Adding to the concern, Italian 10-year yields topped 6 percent for the first time since January at a bond sale, raising concerns the region is vulnerable to contagion. European shares ended 1.5 percent lower. “We’re being held hostage by Europe, by the increasing tensions in Spain,” said John Kattar, chief investment officer at Eastern Investment Advisors in Boston, which manages $1.7 billion. “We’re back to a risk-off mode, with cyclical sectors getting hit really hard.” The Dow Jones industrial average was down 158.18 points, or 1.26 percent, at 12,422.51. The Standard & Poor’s 500 Index was down 18.99 points, or 1.43 percent, at 1,313.43. The Nasdaq Composite Index was down 40.20 points, or 1.40 percent, at 2,830.79. All 10 S&P 500 sectors fell, with energy the biggest decliner of the day. The group tumbled 2.9 percent alongside a drop in crude oil prices, and consumer discretionary stocks were off 1.7 percent. The PHLX oil service sector dropped 3.8 percent while crude fell 3.3 percent. Halliburton Co dropped 4.5 percent to $30.56. The CBOE Volatility index jumped more than 12 percent, the biggest spike for the “fear index” since mid-April. Many analysts view next month’s parliamentary election in Greece as key to whether the country stays in the euro zone. Polls showed on Wednesday that parties for and against a bailout were neck-and-neck or very close to each another.
“Ryan is an alum of New York University, where he studied journalism and American politics. He currently works on the Reuters stocks team.”
The point? That article is written from the vantage of implied expertise. The author very assertively lays out the reasons why certain indices are moving up or down–for today!
Do I really need to spell this out?