Breaking the Illusion: How Wall Street and the Media Manipulate Market Sentiment, Stock Prices, and Earnings Reports

Elon Musk's Twitter Accuses Reuters of Fake News About Tesla Deliveries Numbers. Market Manipulation

expert insights
5
 min read

Wall Street and the media significantly shape market sentiment, futures, earnings, ratings, and price targets. This influence can be positive and negative, as seen in the example of Elon Musk's Twitter accusing Reuters of fake news about Tesla missing delivery estimates. This article will explore how Wall Street and the media manipulate the market and its impact on investors.

Market sentiment is a crucial factor that influences the stock market's performance. It refers to the general mood or attitude of investors towards the market. Positive sentiment leads to a bullish market, while negative sentiment results in a bearish market. Wall Street and the media often manipulate market sentiment through various means, including news releases, rumors, and social media.

Elon Musk's Twitter Accuses Reuters of Fake News About Tesla Deliveries Numbers.

News releases are a primary tool used by the media and Wall Street to manipulate market sentiment. They are often sensationalized, focusing on the negative or positive aspects of a particular company or industry. For instance, when a company misses its earnings estimates, the media will often focus on the negative aspects of the earnings report, leading to a decline in the company's stock price.

Tesla misses delivery estimates as price cuts fail to lure buyers. Reuters.

Twitter marked this Reuters' tweet as fake news by adding the following comment which readers marked as useful- this data is factually incorrect. Wall street was expecting around 420,000 deliveries, Tesla beat expectations with nearly 423,000 deliveries.

Similarly, rumors can also manipulate market sentiment. These rumors can be about a company's financial performance or potential mergers and acquisitions. Wall Street traders often spread rumors to influence the stock price of a particular company to make a profit.

Social media has also become a potent tool for manipulating market sentiment. Influential people such as Elon Musk can use social media platforms to express their opinions about a particular company, leading to a surge or decline in the company's stock price. For example, when Elon Musk tweeted about the potential of Dogecoin, the cryptocurrency's price surged significantly.

Recommended insight and live trading: Cryptocurrency Dogecoin Live Analysis and Live Trading

Market Manipulation: how does it work

Wall Street has been lowering estimates of U.S companies ahead of earnings reports to make it simple to beat unreasonable low estimates. The aim is to lure naive investors into the game by increasing price targets significantly despite the fact companies have no earnings. In the video below, Alex Vieira comments on Elon Musk's Twitter accusing Reuters of fake news about Tesla deliveries numbers.

I would not be surprised if this Tweet is deleted or removed. Be aware of the fraud! Alex Vieira

Futures are another tool used by Wall Street to manipulate market sentiment. Futures are contracts that allow investors to buy or sell an asset at a predetermined price and date in the future. Investors use futures to speculate on the future price of an asset. Wall Street traders often manipulate futures contracts to influence market sentiment.

Earnings reports and ratings are also tools used by Wall Street and the media to manipulate market sentiment. Companies often release their earnings reports, which provide investors with information about their financial performance. The media often sensationalizes these reports, focusing on the negative or positive aspects, which can influence market sentiment.

Similarly, ratings are also used to manipulate market sentiment. Investment firms provide ratings on companies based on their financial performance, potential for growth, and other factors. These ratings can influence investors' decisions to buy or sell a particular stock, leading to a surge or decline in the stock price.

In the case of Elon Musk's Twitter accusing Reuters of fake news about Tesla missing delivery estimates, it highlights the power of social media in shaping market sentiment. Elon Musk has been known to use Twitter to express his opinions about Tesla, which has often led to significant fluctuations in the company's stock price. When Reuters released a report claiming that Tesla was falling short of its delivery estimates, Elon Musk took to Twitter to dispute the report, accusing Reuters of fake news.

In conclusion, Wall Street and the media play a significant role in shaping market sentiment, futures, earnings, ratings, and price targets. They use various tools to manipulate market sentiment, including news releases, rumors, social media, futures, earnings reports, and ratings. Investors should be aware of the impact of these tools on the stock market and make informed decisions when investing.

Update: It seems that Reuters deleted its own tweet after I commented about it, which only validates what I said here.

Market Manipulation: tools to manage risk

  • Use tools that can help to spot manipulation by different market participants
  • You cannot eliminate manipulation by bad actors but you can manage risk

Recommended insight: AI Lying Detector Ultimate Risk Analysis Tool to Demystify Myth of Super-Rich, Geniuses, and Famous

Learn about AI Lying detectors, the ultimate risk analysis tool.

Trailblazers in the realm of AI, reshaping the landscape of investing with innovative strategies.