3. General Industry News
Many publicly traded companies focus on a specific sector, such as technology, food or mining. Sometimes general news about a specific financial sector can have a chain reaction on all companies in that sector. For example, news that copper supply currently outweighs demand is likely to have an effect on mining companies in general and those that focus on copper in particular. Sometimes, however, news about one particular company in a sector can have a knock-on effect on other companies in that same sector. For example, Tesco’s tough 2014 saw its share price drop drastically, but many of its direct competitors in the UK supermarket industry also saw their stock prices slump. In part this was due to a general malaise which investors perceived within the UK supermarket industry, but which Tesco’s actions and the subsequent fall-out helped to highlight.
Other news which can influence the stock price of a company includes takeover speculation (whether this turns out to be correct or not), changes in top company personnel and significant shifts in strategy announced by the firm in question.