Stock Case

1. Impact of various causative factors on the three indicators

 Chinese economy

The slowdown development in China will effect stock price failing. The America's economy has lots of relationship with China's economy because they have lots of trading every day. Which part has bad news will effect to the other. The economy will effect to the stock. The relationship between with China economy and stock price is positive. They are normally effect rate.

 Real estate

the Home Builders confidence index fail to new low rate in the April, but the house sell increase in May, the stock price with this situation fail in April and increase in May. So the relationship with real estate is positive. It should be small effect to the stock price.

 Gold price

There is a big gold price fail in the April, as 14% failing. With this huge gold price failing, the stock price is also failing. They have positive relationship. Gold is a universal equivalent, it is important in the economy, it is also has big power to the stock. So it is stronger effect to the stock price.

 The company's finance report

The company's finance report always tells the investor how their profit is making. Most investor analysis the company finance report to expect the benefit. When the finance report is not good as their expectation, the stock price will fail. They are positive relationship. And they have stronger effect to the stock price. It is the actual price embodiment.

 Unemployment rate

There have good news that the number of people claim for the unemployment benefit decrease. The stock price was going up. so the relationship between with unemployment rate and stock price is negative. It should be not as strong as the result showing, but the American economy is bad for long times, and this is the first time to see unemployment rate is failing. So unemployment rate is strong effect to the stock price.

 Interest rate

The stock price will have big change when the government changes the interest rate. They have negative relation. When The Austria and England failed their interest rate in this month, the stock price gave the big increase for the feedback. Interest rate is stronger effect to the stock price.

2. The relationship between the three indicators analysis

 DJIA and NASDAQ

The correlation coefficient of DJIA and NASDAQ is 0.902594, which is closing to 1.00. It shows that there is a strong positive relationship between DJIA and NASDAQ. 91.69% of the NASDAQ index's movements are associated with the movement of the Dow. The Dow Jones