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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.


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.


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 ?
In addition to Chattanooga, Bellwether has offices in Gainesville, Georgia, and plans to spread throughout the Southeast, Maddox said.
Bellwether trials refer to the old shepherds' practice of belling a wether, or putting a bell around the neck of a male sheep chosen to lead a flock.
The Bellwether weathered the recession, and in the second half of 2010, business started picking up again.
The company will restructure its board to include four representatives from Bellwether and three from Bargo.
Whether it's at home or on the go, our members should be able to access their accounts, pay their bills, and find our locations with ease, which our customers can now do with mobile banking," said Jeff Benson, vice president and Chief Information Officer of Bellwether Community Credit Union.
com, announced today that the location has been set for the first Xarelto bellwether trial, which could take place as early as August of 2016.
The Bellwether Market will open at 8 Bellwether Way later this spring as a high-end convenience store catering to the needs of local and visiting boaters, as well as those who five and work around Bellwether on the Bay.
The Presenter: Aidan Doyle is President and CEO of Bellwether Capital Management, LP, an NFA member firm, as well as being host, producer, and creator of the New York-based financial commentary TV shows, "On da Money" and the recently launched "This Week in Forex.
and Bellwether Real Estate Capital, LLC announced a merger between Enterprise's Multifamily Mortgage Finance business and Bellwether.
Bellwether Medical Center, located at 12 Bellwether Way Suite 108, is moving to a larger office at 4204 Meridian St.
5 percent issue, which became a bellwether 10-year bond Wednesday after its auction the previous day, rose 0.
Compass Credit Union has merged with Bellwether Community Credit Union under the Bellwether name.