Startup Idea: News Driven Stock Value Prediction Software

Startup idea to build a software that can read and analyze news headlines to determine their impact on specific retail sector stocks. The software should 'track' select companies, mark the headline's effect on these companies and their related entities, aiding in short-term and mid-term investment decisions. It would essentially provide a quantifiable measure of how news affects stock performance.

I am a stock trader in the retail sector. My problem is that it is very difficult to rate the value of headlines effect on individual companies stock prices. I need a software to "read" headlines and mark an effect coefficient to the companies related to the headline and their opposition, suppliers and other members.

Particularly, newsnow.co.uk has a global news page that allows users to get a feed of news. Scraping those headlines could provide a coefficient to the individuals companies effected. This way up to the minute changes in performance etc. could be acted upon in trading for profit.

Basic information needed would include a list of companies to be tracked and rated, a benchmark coefficient and a "map" of suppliers and competitors in each market. With these data points a scale of effect could be derived for each headline (macro or micro) aiding in short term and mid term investing. I see no business news rating agencies available to the retail investing sector. I have searched online but no known solution exists.

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