Good news is bad news
Definition · Level 7 · Futures, rates & macro
Keep reading with Tradecraft
Without an account, you can read three definitions every 30 days. Tradecraft explains all 738 terms and strategies, with the lessons that teach them, flashcards that come back before you forget, quizzes and a payoff lab.
Market regime where strong economic data hurts stocks because it implies higher rates for longer: higher yields and discount rates outweigh the better growth.
Example
Blowout payrolls, S&P futures −1%.
Where Tradecraft teaches it
Level 7 · Futures, rates & macro, in the lesson “Macro data & market reaction”: The key US releases, what hot and cool prints mean, and why good news can hurt stocks.
Related terms
- Core CPIConsumer price index excluding food and energy: the monthly BLS inflation measure traders watch most, reported m/m and y/y.
- DeflationA sustained fall in the general price level (negative CPI y/y).
- GDPGross domestic product: the total value of goods and services an economy produces.
- Hot printA data release stronger or more inflationary than consensus (the median forecast).
- InflationA sustained rise in the general price level, eroding the purchasing power of money and of fixed coupons.
- Initial jobless claimsWeekly count of new filings for unemployment insurance, usually released Thursdays at 8:30 ET: the most timely read on layoffs.