Worry,” Wall Street Journal, April 24, 2016. 3.6 The following is from an article on cnbc.com: Typically stock prices increase when the economy is expanding. But on a day when a measure of manufacturing production showed it had reached a three year high, stock prices declined. One stock market analyst was quoted as explaining why: “It’s great news but not new news.”
a. What does the analyst mean by “new news”?
b. Why would the effect of the announcement on stock prices depend on whether it was “new news”?