The following sections of this paper further examine the issues raised. Section II offers a theoretical analysis of how real GDP, unemployment, and the Fisher Effect should impact the S&P 500. Section III provides information on the expected relationship between the economy and the following major industry categories: growth, cyclical, defensive, and interest-sensitive. Section IV introduces the research design including the generalized least squares model. Section V presents the results and examines the appropriate econometric specification. Section VI concludes the study and reiterates important findings.
Taulbee '00, Nate, "Economic Influences on the Stock Market" (2000). Honors Projects. Paper 77.