Stock Markets Exposed - How would the stock market react if the news Reported Good Economic outlook?

How would the stock market react if the news Reported Good Economic outlook?

Even though if was not the truth. Would broadcasting Good economic news change the economy for the better. The power of Suggestion?

Stock markets react to all kinds of news....actual news, expected news....anything!!! Basically news affects the expectations of the investors and thus a positive news might lead to more trading on the stock market leading to higher returns. But each industry's stocks also react to industry specific news. Information flow is a continuous process....one good news and one bad news may nullify any effect or lead to abnormal positive or negative returns depending upon the kind of news/information that is out there in the market... Please refer to some book on information economics....these are only my views...