Fundamental analysis, in accounting and finance, is the analysis of a business’s financial statements (usually to analyze the business’s assets, liabilities, and earnings); health; and competitors and markets. Technical analysis is a trading discipline employed to evaluate investments and identify trading opportunities by analyzing statistical trends gathered from trading activity, such as price movement and volume.
Negative news will normally cause individuals to sell stocks. Bad earnings reports, poor corporate governance, economic and political uncertainty, as well as unexpected, unfortunate occurrences will translate to selling pressure and a decrease in stock price.
Positive news will normally cause individuals to buy stocks. Good earnings reports, increased corporate governance, new products and acquisitions, as well as positive overall economic and political indicators, translate into buying pressure and an increase in stock price.
For example, a hurricane making landfall may cause a drop in utility stocks. Meanwhile, depending on the severity of the storm, insurance stocks could also take a hit on the news (or even climb higher if the expected damage is projected to be moderate).