Scond, trying to quantify the exact reason why an index comprised of 500 companies moved at all is difficult. I would be impressed if Michael Grynbaum, the author of the article, actually surveyed each portfolio manager and asked him/her the volume and value of S & P stocks that were traded. Then we could get an idea of why the index fluctuated. I can think of two reasons that Wal-Mart may drive up an index. First, the value of Wal-Mart shares rose by such an amount as to nominally drive the index up. Shares of Wal-Mart Stores (WMT) did rise, but by 6.12% in value. Likely, this is not the reason. Second, Wal-Mart may signal economic prosperity, and consumer expectations rise with the Wal-Mart reports; this causes the public to accumulate wealth, and the S & P rises. Again, likely not.
We have an article that really says nothing to the reader. Why doesn’t the