Please help me identify a few variables for my assignment. I also want to understand why the variables were chosen. I need feedback, thank you.
GDP IS AN EXCELLENT MACRO INDICATOR
Disappointing growth in the nation's gross domestic product pushed stocks lower yesterday even as investors welcomed a $57 billion merger between Procter & Gamble Co. and Gillette Co. Despite the losses, the major indexes eked out the first winning week of 2005.
While investors were cheered by P&G's bid for Gillette and strong profits from Microsoft Corp., surprisingly weak economic data robbed the markets of any buying momentum. The Commerce Department reported that the GDP - the value of all goods and services produced in the United States - rose at an annual rate of 3.1 percent in the fourth quarter, the lowest gain in seven quarters Economists had expected a 3.5 percent rise.
With elections in Iraq tomorrow, a Federal Reserve meeting beginning Tuesday and the Labor Department's monthly job creation report due next Friday, investors used the GDP figure as another reason to sell stocks ahead of these uncertainties.
"The thought is that the GDP was a disappointment, but I don't know if anybody really cares about GDP. It's not the end of the world," said Brian Pears, head equity trader at Victory Capital Management in Cleveland. "This market has been in a very strong bearish trend for the entire year, such as it is. It's like people walk in every day to find a reason to justify that trend because they're afraid."
The Dow Jones industrial average fell 40.20, or 0.38 percent, to 10,427.20.
Broader stock indicators also gave ground. The Standard & Poor's 500 index was down 3.19, or 0.27 percent, at 1,171.36, and the Nasdaq composite index lost 11.32, or 0.55 percent, to 2,035.83.
For the week, the Dow rose 0.33 percent, the S&P 500 was up 0.3 percent and the Nasdaq climbed 0.08 percent. That reversed a three-week slide for all three indexes.
The Federal Reserve is scheduled to meet next Tuesday and Wednesday, and is widely expected to raise the nation's benchmark interest rate to 2.5 percent from the current 2.25 percent. While there have been concerns about rising prices and inflation, slower economic growth could keep the Fed from a more aggressive rate policy.
Declining issues outnumbered advancers by more than 4 to 3 on the New York Stock Exchange, where consolidated volume came to 2.07 billion shares, compared with 2.042 billion on Thursday.
The Russell 2000 index of smaller companies was down 3.90, or 0.63 percent, at 613.00.
Overseas, Japan's Nikkei stock average fell 0.18 percent. In Europe, Britain's FTSE 100 closed down 0.42 percent, France's CAC-40 dropped 0.54 percent for the session and Germany's DAX index lost 0.35 percent.
EPS IS AN EXCELLENT MICRO INDICATOR
Company XYZ Ltd.
Capital: $ 100 10 million ($ 1 billion).
Capital is the amount the owner has in the business.
As the business grows and makes profits, it adds to its capital. ...
GDP is examined.