bellwether


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Barometer Stock

A stock in a well-known or highly-regarded company in a given sector. The performance of a barometer stock is considered to be an indicator of the performance of its particular sector or industry. The term "barometer stock" is chiefly British; in the U.S., the primary term is bellwether stock.

Bellwether Security

A stock or other security that usually leads the direction of its industry or sector. For example, if a stock begins a bullish or bearish trend a little bit ahead of other stocks, it may be said to be a bellwether security. It should not be confused with a bellwether issue.

bellwether

A security that tends to lead the market and signal the general direction of future price movements. An increasing price for a bellwether stock is considered a bullish signal for the overall stock market.
Case Study Securities maintain their bellwether status for varying periods of time. The common stock of General Motors Corporation was considered the stock market's bellwether for many years, until the American economy transitioned from manufacturing to computers and information management and GM's status was supplanted by the stock of International Business Machines. IBM stock's perch as a market bellwether was subsequently replaced by the common stocks of Microsoft and Cisco Systems, two major players in the new Internet economy. The 30-year Treasury bond served as the bond market's bellwether for nearly two decades, until the 10-year Treasury note took its place in the early 2000s. Unlike stocks that lost their status because of their company's products or services, the 30-year bonds were replaced as a benchmark because the U.S. government redeemed a large portion of its long-term debt, causing the 30-year bond to lose its important status in the bond market. The Treasury announced in late 2001 that sales of the 30-year Treasury bonds would be discontinued.

Bellwether.

A market bellwether is a security whose changing price is considered a signal that the market is changing direction.

It gets its name from the wether, or castrated ram, that walks at the head of a shepherd's flock. The distinctive tone of the bell around the wether's neck signals the flock's position.

There's not an official list of these trend setters, or market barometers, and they do change as the overall markets and the fortunes of individual companies change.

References in periodicals archive ?
The 2014 general elections Uttar Pradesh again proved to be a bellwether state with the BJP and its allies winning 73 out of the 80 parliamentary seats.
Bellwether Coffee has developed a system which helps solve for three problems facing the rapidly-growing coffee market--freshness, margins and sustainability.
Bellwether Enterprise offers borrowers a full-spectrum of financing options including Life Insurance company, Fannie Mae, Freddie Mac, FHA, CMBS, and other proprietary lending products.
Massey will be one of two Bellwether associates at the firm.
While the report cites Luton South as an example, Wirral South has also been previously considered a bellwether - but in 2010 Labour clinched the seat by just over 500 votes, while the Tories won the most seats.
"We are opening the gates to the exciting world of binary option trading by creating an exceptional trading environment where anyone can trade binary options in a simple,convenient and efficient manner on any device," said Aidan Doyle, President & CEO of Bellwether Capital Management.
In layman's terms, bellwether trials are the first cases to be tried in a group of similar cases.
Working-class Oscar falls in love with beautiful Cambridge student Iris Bellwether and is drawn into her privileged set - including her brother, brilliant but troubled Eden, who believes he can heal the sick with music.
"Yamaha, as most companies would, I hope, in that situation, chose the option of aggressively defending this litigation, recognizing that the path to resolution was through bellwether trials," says Bowman and Brooke Partner Paul Cereghini, who represented Yamaha in the Rhino litigation.
When Michael Herzog and a team of other investors bought Hotel Bellwether in 2007, travel spending in Whatcom County was at an all-time high of $454.7 million.
Career Summary | Tenneco Oil Co., Houston, in various accounting roles (1979-82); Enstar/Union Texas Petroleum, Houston, Partnership Accountant (1982-91); Torch Energy Advisors, Houston, in various accounting roles, then outsourced as Controller to Bellwether Exploration Co., Houston (1991-2001); also worked for Bellwether as Vice President, Chief Accounting Officer.