Hoax AP White House tweet tests firms scouring social media | Investing | Financial Post

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A tweet reporting explosions at the White House appeared on the Associated Press’s official feed Tuesday afternoon, sparking a temporary sell-off that briefly wiped out about US$140 billion in market value on the S&P 500.

Duane Tilden‘s insight:

Tuesday’s fateful tweet appeared at 1:07 p.m. EDT. It was picked up almost immediately by investors and analytic companies scanning Twitter for key words to determine breaking news or measure sentiment. Stocks and commodities moved sharply lower and bond prices soared.

Within minutes, analytics firm Dataminr issued an alert saying the AP account was probably hacked, citing another tweet by a reporter in the White House basement.

“We see this every time this type of news comes out: liquidity evaporates quickly. High-frequency traders cancel their orders on even one little tweet,” said Dennis Dick, a trader at Bright Trading LLC in Las Vegas.  Freeling-Wilkinson said analytics firms like his are more interested in looking at trends than individual tweets.  “I would never recommend that anyone trades on a single tweet,” he said.

See on business.financialpost.com

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SEC Allows Companies To Announce News To Investors Through Facebook – AllFacebook

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Soon, investors will be able to learn more about companies in the same space where they play Candy Crush Saga. The Securities and Exchange Commission declared Tuesday that companies can notify their investors of news through Facebook and Twitter.

Duane Tilden‘s insight:

George Canellos, acting director of the SEC’s division of enforcement, commented on this new development in a press release:

One set of shareholders should not be able to get a jump on other shareholders just because the company is selectively disclosing important information. Most social media are perfectly suitable methods for communicating with investors, but not if the access is restricted or if investors don’t know that’s where they need to turn to get the latest news.

What brought about this decision was a post on the …

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