BF422 — Bloomberg Exercise: Macroeconomic & Industry Analysis (Chapter 12)

Getting started: Log into a Bloomberg terminal. Economic data commands use the pattern: FUNCTION GO. Press the green GO key to execute.

Part 1: Federal Funds Rate & Interest Rates

1Plot the US Federal Funds Rate.

Type FDTR Index GP GO to graph the Federal Funds Target Rate over time.

Alternatively, type ECST GO and search for "Federal Funds."

Field	Value
Current Federal Funds Rate
Rate 1 year ago
Direction of change (rising/falling/flat)

Is the Fed currently pursuing expansionary or contractionary monetary policy? How can you tell?

Part 2: Leading Economic Indicators

2Plot two leading indicators.

Use ECST GO (Economic Statistics) to find indicators, then press GP to graph them. Suggested tickers:

Indicator	Ticker	Current Value	3-Month Trend
ISM Manufacturing PMI	NAPMPMI Index
Consumer Confidence	CONCCONF Index

Based on these indicators, do they suggest the economy is expanding, contracting, or at a turning point?

3Check the yield curve slope.

Type GC GO to view the US Treasury yield curve. Record:

Field	Value
2-Year Treasury Yield
10-Year Treasury Yield
Spread (10yr − 2yr)

Is the yield curve normal (upward sloping), flat, or inverted? What does this signal about future economic expectations?

Part 3: Economic Calendar & Upcoming Releases

4View the economic calendar.

Type ECO GO to see upcoming economic data releases. Find 3 releases scheduled for this week:

Release	Date/Time	Prior	Consensus Estimate	Leading/Coincident/Lagging?

Part 4: Industry & Sector Analysis

5Compare sector performance.

Type BI GO (Bloomberg Intelligence) and navigate to the sector dashboard. Alternatively, type S5INFT Index GP for S&P 500 Info Tech, etc.

Record year-to-date (YTD) returns for these sectors:

Sector	Ticker	YTD Return (%)	Cyclical or Defensive?
Information Technology	S5INFT Index
Health Care	S5HLTH Index
Consumer Discretionary	S5COND Index
Utilities	S5UTIL Index
Energy	S5ENRS Index

6Interpret the sector pattern.

Based on which sectors are outperforming:

Which stage of the business cycle does the current sector leadership suggest? (Early recovery, expansion, late expansion, or recession?)

Are cyclical sectors or defensive sectors currently leading? What does this tell you about investor sentiment?

Key takeaway: Bloomberg connects textbook macro concepts to real-time data. Leading indicators, yield curve signals, and sector rotation patterns are all visible in live market data — but remember, one data point doesn't make a trend.

Bloomberg Terminal Exercise

Part 1: Federal Funds Rate & Interest Rates

Part 2: Leading Economic Indicators

Part 3: Economic Calendar & Upcoming Releases

Part 4: Industry & Sector Analysis

Bloomberg Quick Reference

Command	Function	Example
ECST	Economic Statistics	ECST GO
ECO	Economic Calendar	ECO GO
GP	Graph/Price Chart	FDTR Index GP
GC	Government Yield Curve	GC GO
BI	Bloomberg Intelligence	BI GO
ECFC	Economic Forecasts	ECFC GO
WECO	World Economic Statistics	WECO GO