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What is a Morning Note?

A morning note (also called a morning call note or daily note) is a 1-page research communication published before the market opens, typically by 7:00 AM. It summarizes overnight developments, earnings surprises, key events for the day, and any actionable trade ideas across the analyst’s coverage universe. It is the written companion to the morning meeting — a daily gathering where each analyst has 2-3 minutes to brief portfolio managers and traders. Morning notes are a cornerstone of how equity research communicates with the trading floor. At sell-side firms, they are distributed to institutional clients via email and Bloomberg. At buy-side firms like Citadel, Point72, or Millennium, they are shared internally with the portfolio management team. The format is standardized: a “Top Call” headline, overnight developments, today’s events, and trade ideas — all in a format that can be read in under 2 minutes. The morning note is one of the highest-leverage activities in equity research. A well-crafted note that identifies a mispricing before the market opens can generate significant trading revenue. Conversely, a note that merely summarizes headlines without a view adds no value.

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Why It Matters

  • Time-sensitive edge: The window between overnight news and market open is when informed positioning decisions are made. A note published at 7:00 AM drives pre-market trading activity
  • Analyst visibility: Morning notes are how analysts stay top-of-mind with portfolio managers. A consistently strong morning note is the best marketing tool an analyst has
  • Accountability: Morning notes create a written record of views. Over time, they demonstrate whether an analyst’s real-time calls were accurate
  • Prioritization: PMs and traders are overwhelmed with information. The morning note’s job is to cut through noise and surface what actually matters

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Key Concepts

TermDefinition
Top CallThe single most important development — the headline that PMs need to hear first
Coverage UniverseThe set of stocks an analyst follows (typically 10-20 companies in a specific sector)
Pre-Market / After-HoursTrading that occurs before 9:30 AM or after 4:00 PM ET, when earnings are often released
Trade IdeaA specific, actionable investment recommendation (Long XYZ for ABC reason, risk is DEF)
Quick TakeA 2-3 sentence reaction to earnings results, not a full report
Implied MoveThe stock price swing the options market is pricing in for a specific event
Flash NoteA brief, time-sensitive research communication — shorter than a morning note, often event-driven

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Worked Example: Technology Sector Morning Note

Below is a complete worked example showing what a professional morning note looks like, with the reasoning behind each section.

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The Situation (March 12, 2025)

What happened overnight:
  • ServiceNow (NOW) reported Q4 2024 earnings after the close yesterday: revenue 2.44B(+222.44B (+22% YoY), beating consensus of 2.40B. Subscription revenue 2.33B(+232.33B (+23%). RPO growth of 25%. Stock up 8% after hours to 920.
  • Salesforce (CRM) announced acquisition of a small AI startup for $700M. Stock flat after hours.
  • Asian tech markets: Japan’s Nikkei +1.2%, driven by semiconductor stocks after TSMC reported strong monthly revenue.
  • US futures: S&P +0.3%, Nasdaq +0.5%.
Your coverage universe (15 stocks): NOW, CRM, WDAY, HUBS, SNOW, DDOG, NET, ZS, PANW, CRWD, TEAM, MDB, DKNG, TTD, TWLO

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The Morning Note

March 12, 2025 -- Morning Note
Enterprise Software / Cloud Infrastructure
John Smith, CFA

TOP CALL: ServiceNow Q4 Beat Confirms AI Monetization Thesis
NOW reported Q4 revenue of $2.44B (+22% YoY), beating consensus by
$40M. The real story is Pro Plus AI adoption: 85 deals >$1M in the
quarter (up from 45 in Q3), driving RPO growth of 25%. This confirms
our thesis that AI is not just hype -- enterprises are signing
multi-year AI-enhanced contracts. Stock up 8% AH to $920.

Our take: MAINTAIN BUY, raising PT to $1,000 from $900. The
acceleration in Pro Plus adoption is the most important data point
in enterprise AI since Microsoft's Copilot launch. We expect
estimate revisions across the sellside this morning. Full earnings
update to follow by 1 PM ET.

Key numbers:
| Metric        | Consensus | Actual  | Beat/Miss    |
|---------------|-----------|---------|--------------|
| Revenue       | $2.40B    | $2.44B  | +$40M (+1.7%)|
| Sub. Revenue  | $2.29B    | $2.33B  | +$40M (+1.7%)|
| cRPO Growth   | 22%       | 25%     | +300bps      |
| Op. Margin    | 29.5%     | 30.2%   | +70bps       |
| FY25 Sub. Rev | $10.55B   | $10.63B | +$80M        |

OVERNIGHT / PRE-MARKET DEVELOPMENTS
- CRM: Acquired AI startup DataForge for $700M. Small deal (0.3% of
  market cap). DataForge specializes in unstructured data processing.
  Our take: Minor positive. Fills a gap in Salesforce's Einstein AI
  stack. No change to estimates or rating (HOLD, $290 PT).
- SNOW: Goldman initiates at Buy, $200 PT. Cites consumption recovery
  and AI/ML workload growth. We agree consumption is stabilizing but
  remain cautious on margins. Maintain HOLD, $175 PT.
- Asia semis strong: TSMC March revenue +35% YoY. Read-across positive
  for DDOG and NET (cloud infrastructure demand proxy).
- Macro: 10Y yield 4.15% (-3bps), no Fed speakers today. Supportive
  backdrop for growth/tech.

KEY EVENTS TODAY
- 8:30 AM: CPI report (consensus +3.1% YoY). A print below 3.0%
  would be bullish for growth stocks. Above 3.3% would pressure the
  entire coverage universe.
- 10:00 AM: NOW management call replay available. Will look for
  color on Pro Plus pipeline and pricing for my full update.
- 2:00 PM: PANW presents at Morgan Stanley TMT conference. Watch
  for platformization commentary and Q2 pipeline updates.
- No coverage companies reporting today.

TRADE IDEA
Long DDOG at $135 ahead of Q4 earnings (Feb 25). Thesis: cloud
consumption recovery (supported by TSMC and NOW data points) drives
upside to revenue estimates. Options-implied move is 8%, below the
12% average absolute move over the last 4 quarters. Risk: If CPI
comes in hot and growth sells off broadly, wait for a better entry.
Stop-loss: $122.

Positions to watch: NOW (post-earnings continuation? Likely yes
given quality of beat), PANW (conference commentary today).

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Why Each Section Works

Top Call: Leads with the most important news (NOW earnings). Does not just state the result — provides the interpretation (“AI monetization thesis confirmed”) and the action (“raising PT to $1,000”). A PM reading just the first 3 lines knows exactly what happened and what to do. Beat/Miss Table: Quantifies every key metric. A PM can scan this in 5 seconds and understand the magnitude of the beat across revenue, margins, and guidance. Overnight Developments: Short, opinionated takes on each item. Not just “CRM acquired DataForge” but “Minor positive. Fills a gap in Einstein AI stack. No change.” Every line has a view. Key Events Today: Tells the desk what to watch. The CPI commentary adds analytical value by providing specific thresholds (below 3.0% is bullish, above 3.3% is bearish). Trade Idea: Specific and actionable. Includes the trade (Long DDOG at 135),thethesis(cloudconsumptionrecovery),thecatalyst(Q4earningsFeb25),therisk(hotCPI),andthestop−loss(135), the thesis (cloud consumption recovery), the catalyst (Q4 earnings Feb 25), the risk (hot CPI), and the stop-loss (122). A trader can execute this immediately.

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Full Skill Workflow (From SKILL.md)

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Phase 1: Scan Overnight Developments (5:00-6:00 AM)

Earnings & Guidance:
  • Check whether any coverage companies reported overnight or pre-market
  • For each: pull revenue, EPS, and key metric vs. consensus
  • Note guidance changes (raised, lowered, maintained)
  • Check pre-market price reaction
News & Events:
  • M&A announcements or rumors involving coverage names
  • Management changes at coverage companies
  • Product launches or regulatory decisions
  • Analyst upgrades/downgrades from competitors (note the firm and new rating)
  • Macro data or policy changes affecting the sector
Market Context:
  • Overnight futures and pre-market moves (S&P, Nasdaq, sector ETFs)
  • Relevant commodity or currency moves (if applicable to sector)
  • Key economic data releases today (CPI, jobs, FOMC)
  • Asian/European market performance for global read-through

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Phase 2: Prioritize and Draft (6:00-6:45 AM)

Ranking framework: Prioritize developments by their potential stock price impact:
PriorityTypeExample
P0 (Top Call)Material earnings beat/miss for coverage stockNOW beats revenue by 1.7%, stock +8%
P1Significant coverage universe newsCRM announces acquisition
P2Competitor/sector data with read-throughTSMC monthly revenue
P3Macro/market contextCPI expectations, futures
P4Minor analyst notes, routine releasesGoldman initiates on SNOW
The P0 item becomes the Top Call. If there is no P0 item (no material overnight development), the Top Call can be a trade idea, a theme update, or an honest “nothing material overnight — maintaining positioning.” Drafting rules:
  • Top Call: 3-5 sentences. What happened, why it matters, what to do.
  • Each overnight item: 2-3 sentences. Headline + our take.
  • Events today: 1-2 sentences each with time and what to watch for.
  • Trade idea (if applicable): Specific entry, thesis, catalyst, risk, stop-loss.

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Phase 3: Quick Takes on Earnings (if applicable)

When a coverage company reports, include a structured reaction:
MetricConsensusActualBeat/Miss
Revenue$X.XB$X.XB+X.X%
EPS$X.XX$X.XX+$X.XX
Key metricXYBeat/Miss
Guidance$X.XB$X.XBRaised/Lowered
Our Take: 2-3 sentences. Is this good or bad? Does it change the thesis? Maintain/upgrade/downgrade? Action: Maintain / Upgrade / Downgrade rating. Adjust price target? Full report timing.

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Phase 4: Deliver Output (6:45-7:00 AM)

  • Format: Markdown text for email/Slack distribution or Word document for formal distribution
  • Length: Maximum 1 page. PMs and traders will not read more
  • Timing: Deliver by 7:00 AM ET (6:30 AM is better)
  • Distribution: Email, Bloomberg IB chat, internal Slack/Teams channel

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Morning Note Templates by Situation

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Template 1: Coverage Company Earnings Morning Note

[Date] -- Morning Note
[Sector Coverage]
[Analyst Name]

TOP CALL: [TICKER] Q[X] [Beat/Miss] -- [One-Line Takeaway]
[2-3 sentences: What happened, why it matters, action]

Key Numbers:
| Metric     | Cons.    | Actual   | Beat/Miss |
|------------|----------|----------|-----------|
| Revenue    | $X.XB    | $X.XB    | +X%       |
| EPS        | $X.XX    | $X.XX    | +$X.XX    |
| [Key Met]  | X        | X        | Beat/Miss |
| Guidance   | $X.XB    | $X.XB    | +X%       |

Rating: [Maintain/Upgrade/Downgrade] [Rating], PT [old] -> [new]
Full report: [Timing]

OVERNIGHT DEVELOPMENTS
- [TICKER]: [1-line summary] + our take
- [Sector/macro]: [1-line summary] + implication

KEY EVENTS TODAY
- [Time]: [Event] -- what to watch
- [Time]: [Event] -- expectations vs. our view

TRADE IDEA (if applicable)
[Long/Short] [TICKER] at $[price]: [1-2 sentence thesis]
Catalyst: [event/date]. Risk: [what goes wrong]. Stop: $[price].

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Template 2: No Material News Morning Note

[Date] -- Morning Note
[Sector Coverage]
[Analyst Name]

TOP CALL: Nothing Material Overnight -- Watching CPI at 8:30
No coverage companies reported overnight. Futures +0.2%.
Key event today: CPI at 8:30 AM. Our sector is positioned for
a soft landing; a hot print would be the primary risk.

POSITIONING REMINDER
- Our conviction calls: [TICKER] (Buy, PT $XX, key catalyst
  date), [TICKER] (Sell, PT $XX, thesis recap).
- Names reporting this week: [TICKER] (Tue AH), [TICKER] (Wed PM).

KEY EVENTS TODAY
- 8:30 AM: CPI (consensus +3.1%). Bullish if <3.0%, bearish if >3.3%.
- 1:00 PM: [TICKER] presents at JPM conference. Watch for [topic].

TRADE IDEA
[Long/Short] [TICKER] at $[price]: [thesis + catalyst + risk].

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Template 3: Macro-Driven Morning Note

[Date] -- Morning Note
[Sector Coverage]
[Analyst Name]

TOP CALL: Fed Holds Rates -- Growth Stocks Should Outperform Today
FOMC held rates at 5.25-5.50% as expected, but dot plot shifted to
3 cuts in 2025 (from 2). Dovish tilt positive for our coverage
universe. 10Y yield down 8bps to 4.10%. Expect our names to
outperform the S&P today by 100-150bps.

COVERAGE IMPLICATIONS
- Most exposed to rate cuts: [TICKER] (high duration, neg FCF)
  and [TICKER] (highly levered, interest cost savings).
- Least affected: [TICKER] (already profitable, low beta).
- Sector ETF ([TICKER]) +1.8% pre-market.

OVERNIGHT DEVELOPMENTS
- [TICKER]: [1-line summary] + our take
- Asia/Europe: [1-line summary]

KEY EVENTS TODAY
- 9:30 AM: Watch for sector rotation out of defensives into growth.
- 2:00 PM: Fed Chair press conference replay analysis.

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Common Mistakes (and How to Avoid Them)

What goes wrong: “ServiceNow reported Q4 earnings. Revenue was 2.44B.EPSwas2.44B. EPS was 3.12.” This is a news wire, not a morning note. The PM can read headlines themselves.How to avoid it: Every item needs a “so what.” Not just what happened, but what it means: “NOW Q4 confirms AI monetization thesis — Pro Plus deals nearly doubled QoQ. Raising PT to $1,000.”
What goes wrong: The morning note opens with market context (“Futures are up 0.3%, 10Y yield unchanged…”) when the real story is that a coverage company beat earnings by 5% and is up 10% pre-market. The PM reads the first two sentences, decides there is nothing interesting, and stops reading.How to avoid it: The Top Call is always the most important thing. If a coverage company had a major earnings event, that is the Top Call. Market context goes after.
What goes wrong: The morning note is 3 pages long and covers 15 data points. It takes 10 minutes to read. No PM or trader will invest 10 minutes before the open.How to avoid it: One page maximum. If you have more to say, put the additional analysis in a separate follow-up note. The morning note is the headline and the action — not the deep dive.
What goes wrong: “DDOG looks interesting here.” This is not a trade idea. There is no entry price, no thesis, no catalyst, no risk, and no stop-loss. The trader cannot act on it.How to avoid it: A complete trade idea has five elements: what (Long DDOG at 135),why(cloudconsumptionrecovery),when(aheadofQ4earningsFeb25),risk(hotCPIkillsgrowthsentiment),andexit(135), why (cloud consumption recovery), when (ahead of Q4 earnings Feb 25), risk (hot CPI kills growth sentiment), and exit (122 stop-loss).
What goes wrong: Yesterday’s Top Call was “Long XYZ ahead of earnings, expecting a beat.” XYZ missed badly and dropped 12%. Today’s morning note does not mention it — the analyst hopes everyone forgot.How to avoid it: Address it directly: “Our Top Call yesterday on XYZ was wrong. We expected a beat on cloud revenue, but the miss was driven by federal government contract delays we did not anticipate. Downgrading to HOLD, cutting PT to XXfromXX from XX. Lesson: we underweighted the government exposure risk.” This builds credibility.
What goes wrong: The morning note goes out at 6:30 AM on Monday, 7:15 AM on Tuesday, not at all on Wednesday, and 8:00 AM on Thursday. PMs and traders cannot rely on it, so they stop reading it.How to avoid it: Publish every trading day at the same time. 7:00 AM is standard. If there truly is nothing to say, say “nothing material overnight” in two sentences. Consistency builds readership.
What goes wrong: TSMC reports strong monthly revenue (a positive signal for cloud infrastructure demand), but the cloud software analyst does not mention it in the morning note because TSMC is not in their coverage universe.How to avoid it: Scan for data points outside your coverage that have implications for your stocks. TSMC revenue is a demand signal for DDOG, NET, SNOW, and other cloud infrastructure names. A strong manufacturing PMI is relevant for industrial software names.
What goes wrong: “CPI comes out today. PANW presents at a conference.” The PM does not know when these events happen and cannot plan their day.How to avoid it: Always include exact times: “8:30 AM: CPI report. 2:00 PM: PANW at Morgan Stanley TMT conference.” This lets the desk plan their calendar.
What goes wrong: It is a quiet Monday with no earnings and no material news. Rather than saying “nothing material overnight,” the analyst writes a 1-page note about general market conditions and vague thematic observations. This wastes the reader’s time and dilutes the note’s credibility.How to avoid it: “No news” is a valid morning note. A 2-sentence note — “Nothing material overnight across our coverage universe. Maintaining positioning. Key event this week: SNOW earnings Wednesday AH” — is more valuable than a forced page of filler.
What goes wrong: You write the note at 5:30 AM based on a stock being up 6% after hours. By the time PMs read it at 7:00 AM, the stock has given back the gains and is now flat pre-market. Your note says “stock up 6%” which is no longer accurate.How to avoid it: Time-stamp your observations: “NOW +8% as of 6:00 AM pre-market” or “Futures as of 5:45 AM.” This signals when the data was captured and alerts readers that the situation may have changed.

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Daily Workflow Scenarios

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Scenario 1: Standard Morning with Coverage Company Earnings

4:30 PM (prior day): ServiceNow reports earnings after close. You scan the press release immediately. 5:00-5:30 AM (morning of): Wake up. Check: (1) NOW pre-market price, (2) overnight futures, (3) Asia/Europe markets, (4) any other overnight news for coverage names. 5:30-6:15 AM: Draft the morning note. Top Call is NOW earnings. Build the beat/miss table. Write your take. Scan for other overnight developments. 6:15-6:30 AM: Quick review. Check math in the table. Verify pre-market price is current. 6:30-6:45 AM: Distribute via email/Slack/Bloomberg. Note: “Full NOW earnings update to follow by 1 PM ET.” 7:00 AM: Morning meeting. Present the Top Call verbally (2 minutes). Answer PM questions. 8:00 AM-1:00 PM: Write the full earnings update report (separate deliverable — see the earnings-analysis skill).

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Scenario 2: Quiet Morning with No Material Developments

5:00-5:30 AM: Check: no earnings, no M&A, no analyst actions. Futures flat. Asia/Europe unremarkable. 5:30-6:00 AM: Write a short note. Top Call can be: positioning reminder (reiterate conviction calls), upcoming events this week, or a thematic observation relevant to the sector. 6:00-6:15 AM: Distribute. Key principle: Do not force content. A 3-line note that says “nothing material, maintaining positioning, watching SNOW earnings Wednesday” is more respectful of the reader’s time than a page of filler.

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Scenario 3: Major Macro Event Morning (FOMC, CPI, Jobs Report)

5:00 AM: Check the data release (if pre-market) or preview expectations. 5:30-6:15 AM: Draft the note focused on macro implications for your sector. Which coverage names are most sensitive to this data? What are the specific thresholds that matter (e.g., “CPI below 3.0% is bullish, above 3.3% is bearish for our universe”)? 6:15-6:45 AM: If the data has not yet been released (e.g., CPI at 8:30 AM), note expectations and provide a framework: “If CPI is X, expect Y for our coverage.” After release: If the data is significant, send a supplemental flash note: “CPI came in at 2.9%, below consensus of 3.1%. Positive for growth stocks. Our most sensitive names: [TICKER], [TICKER].”

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Scenario 4: Crisis / Major Unexpected Event

5:00 AM: A major cybersecurity breach is reported affecting multiple Fortune 500 companies. Your coverage includes cybersecurity stocks (PANW, CRWD, ZS). 5:30-6:30 AM: This is a P0 event. Top Call should address:
  1. What happened (2-3 sentences on the breach)
  2. Who benefits (PANW, CRWD, ZS — short-term sentiment positive, but specify which has the most relevant product offering)
  3. Who is at risk (any coverage companies that might be affected by the breach)
  4. Action: “This is a catalyst for CRWD and ZS. We expect pipeline acceleration over the next 1-2 quarters. Consider adding to CRWD (Buy, PT $380) on any weakness.”
Key principle: In a crisis, the analyst who provides a clear, calm, and actionable framework is the most valuable person on the desk.

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Practice Exercise

Exercise: Write a Morning Note for the Following Situation It is Tuesday, March 18, 2025. You cover Enterprise Software (10 stocks). Here is what happened overnight: Earnings:
  • Workday (WDAY) reported Q4 FY2025 after the close yesterday:
    • Revenue: 2.21Bvs.consensus2.21B vs. consensus 2.18B (+1.4% beat)
    • Subscription Revenue: 2.03Bvs.2.03B vs. 2.01B (+1.0% beat)
    • Operating Margin: 26.5% vs. 25.8% consensus
    • FY2026 Subscription Revenue Guidance: 8.8Bvs.consensus8.8B vs. consensus 8.85B (slight miss)
    • Stock: Down 3% after hours (guidance miss overshadowing beat)
Other News:
  • Snowflake (SNOW) CEO announced retirement effective June 1. No successor named yet. Stock -5% pre-market.
  • Reuters reports Oracle (ORCL, not in coverage) is in talks to acquire a mid-market ERP provider. Read-through potential for WDAY competitive positioning.
  • Macro: 10Y yield 4.20% (+5bps). S&P futures -0.4%. No major economic data today.
Task 1: Write the Top Call. Which event is the P0 item? Why? Task 2: Write the complete morning note in the template format. Include:
  • Top Call (3-5 sentences)
  • WDAY beat/miss table with 5 key metrics
  • Rating/PT action
  • Overnight developments (2-3 items with your take)
  • Key events today (2-3 items with times)
  • Trade idea (optional, but recommended given the SNOW CEO news)
Task 3: For the WDAY result specifically, answer: Is the 3% decline justified given the beat on Q4 metrics but miss on FY2026 guidance? What would you need to see to upgrade? Task 4: For the SNOW CEO departure, assess: Is this a buying opportunity or a reason to sell? What would make the CEO departure thesis-changing vs. manageable? Task 5: Rewrite the morning note assuming the opposite scenario: WDAY missed earnings badly (revenue -3% vs. consensus, margins compressed 200bps, guidance cut by 5%). How does your tone, structure, and recommended action change?

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How to Add to Your Local Context

# Install the plugin
claude plugin install equity-research@financial-services-plugins
Customizing for your firm: If your firm has a specific morning note template or distribution format, edit the skill file: 
open ~/.claude/skills/equity-research/morning-note.md
Add your coverage universe, preferred formatting, and distribution channel details. Connecting to news sources: 
{
  "mcpServers": {
    "news-feed": {
      "command": "news-mcp-server",
      "args": ["--sources", "bloomberg,reuters,company-ir"]
    }
  }
}

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Best Practices

  • “No news” is a valid morning note: Say “nothing material overnight, maintaining positioning” rather than fabricating content to fill space
  • Distinguish signal from noise: Actionable events (earnings, M&A) vs. non-events (minor analyst notes, routine press releases)
  • Time-stamp your takes: If writing at 6am, note that pre-market moves may change by open
  • Own your mistakes: If yesterday’s call was wrong, acknowledge it. Credibility matters more than being right every time
  • Be specific on trade ideas: “Long XYZ at 45,target45, target 55, stop at $40, catalyst is Q2 earnings in 3 weeks” is useful. “XYZ looks interesting” is not
  • Keep it under 1 page: Every word beyond one page reduces readership. Edit ruthlessly
  • Publish at the same time every day: Consistency builds readership. PMs should know when to expect your note
  • Cross-sector read-throughs matter: Data from adjacent sectors can be the most valuable insight in your note

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Dependencies

Required:
  • Access to news feeds (Bloomberg, Reuters, company IR websites)
  • Pre-market price data
  • Consensus estimates for coverage universe
Optional:
  • Bloomberg Terminal or FactSet for real-time data
  • Distribution platform (Bloomberg IB, Slack, email list)
  • Options data for implied move calculations