6-1 Journal FIN 340

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Georgia Southern University *

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340

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Finance

Date

Jan 9, 2024

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3

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Megan Strieff Journal 6-1 Impact of News Southern New Hampshire University FIN 340 The company stock I chose was for GE and the news article was dated November 26 th , 2022. In this article it is said that GE experienced a data breach by a threat actor known as IntelBroker and sold the stolen data on the dark web. GE has been a target before for a data breach in 2020 that occurred through a third-party provider, Canon Business Process Services. The company also suffered another hit in 2022 when a former employee was found guilty of conspiracy to steal aviation trade secrets and send them to China. The stock price for GE on November 15 th , 2022, roughly two weeks before the article was $67.56. The article was dated on a weekend, so I used the stock price just before the day of the article release on November 25 th , 2022, which was $68.46. The return two weeks before the article was published was 1.31% return ($68.46-$67.46)/$68.46). On November 28 th , 2023, the stock price was $68.07. The day of the news was -0.5% return ($68.07-$68.46)/$68.07). December 12 th , two weeks after the publication of the article GE stocks were trading at $63.79. The return after the article was published was -6.71% ($63.79-$68.07/$63.79). This news article did not have a positive impact on the returns for GE’s stock. After reading through the article and knowing this was not GE’s first data breach, I am surprised that the stock did not have a sharper fall. The article I found discusses the United States Labor Market, in which unemployment increased slightly by 3.9%. The stock CBOE 10-year treasury price on October 23, 2023,
roughly two weeks before the article was $4.87. The price the day before the article was published was $4.64. The return two weeks before the article was published was -4.96% (($4.64- $4.87)/$4.64). On November 6 th , 2023, the price was $4.61. The day of the article the return was -5.64% (($4.61-4.64)/4.61). November 20 th , 2023, two weeks after the publication the price was $4.47. The return after the article was published was -3.13% ($4.47-4.61)/$4.47). The actual impact pf the news on the bond yield was what I expected it to be. The calculated return declined just before the news story and experienced a slight increase two weeks after the publication of the article.
References First signs of weakness in US labour market: Unemployment up slightly to 3.9% . The Corner. (2023, November 6). https://thecorner.eu/news-the-world/first-signs-of-weakness-in-us- labour-market-unemployment-up-slightly-to-3-9/111658/ Muncaster, P. (2023, November 27). General Electric investigates alleged DARPA BREACH . Infosecurity Magazine. https://www.infosecurity-magazine.com/news/general-electric- alleged-darpa/ Yahoo! (2023, December 11). CBOE interest rate 10 year T no (^TNX) historical data . Yahoo! Finance. https://finance.yahoo.com/quote/%5ETNX/history?p=%5ETNX Yahoo! (2023, December 11). General Electric Company (GE) stock historical prices & data . Yahoo! Finance. https://finance.yahoo.com/quote/GE/history? period1=1667260800&period2=1702166400&interval=1d&filter=history&frequency=1d& includeAdjustedClose=true
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