Influences

        The stock market is effected by a plethora of influences. Some of these include economic news, job reports, earnings releases, analyst outlooks, and major world events. These things can often cause drastic changes in entire pattern of the market.
        Earning reports most often effect the stock that is related to the company. For example, if an oil company misses earning estimates, its stock (which might normally fluctuate around 1% a day) could drop by 10%. This is due to fears that the company isn't doing as well as everyone thinks. Stocks with smaller market caps tend to move jump or plunge at extreme percentages, as opposed to multibillion dollar companies that are much more stable. These smaller cap stocks can sometimes double, even triple their values in a single day!
        However, certain earning reports can influence the curve of the entire market. If a company such as Amazon reports poor earnings, it may indicate that consumers are holding back spending. Often times, these sorts of earning reports will only drag down one sector, or group of stocks. For example, the retail sector and the Nasdaq might be influenced by such a report.
        The entire stock market is effected by not only the performance of companies, but also by other economic influences. Job reports come out every month, and are a strong indicator of how well the overall economy of a country is doing. This tends to only effect the stock market of that specific company. Federal news also has the same effect, like whenever Ben Bernake provides updates on federal stimulus program.
        Sometimes, a stock reports a breakthrough in development, or releases a new product. These often cause investors to increase their earning outlooks and view the company as having more potential. Other times, a company might report a large order of their product. These all change the company's path. Investors are attracted to such things.
        One of the largest influences on a stock, however, is the volume and the investors themselves. Warren Buffett is a powerhouse in the economic world. Whenever he announces positions in a stock, that stock might shoot up 10%! People follow investors they trust, so their presence on a board of a company will have a positive effect. On the other hand, certain investors my decrease their holdings, or dump their shares of a company for no specific reason. This will send the stock plummeting.

Disclaimer: Trading stocks has extremely high risks, and should not be taken to lightly without a thorough understanding. This is written from a purely commentary point of view and is not meant to suggest buying, selling, or holding a stock. All traders must do their own research prior to investing. We (StockQuests) are unaffiliated with all of the companies that are mentioned on this blog, and can't be held responsible for any losses that may occur. Invest at your own risk.