Affect the stock market?

A high accumulation of business inventories signals a decline in purchasing power. Investors only make money out of their investments if goods are moving at a good pace and turnovers are high. It is therefore needless to say that an accumulation of business inventories spells doom to any investor. The business inventories report together with the sales report can give an elaborate insight into the pace of the market. Judging on these two factors, it is clear that the report is likely to course some change in the stock market prices. If investors read the possibility of an oncoming recession, they would hastily try to exit the market and look for better places to invest even if it means crossing international boundaries. This situation would see a sudden drop in share prices as the market losses its demand for the same.
However, in the event that business inventories decline at a good pace, the market would be registering good turnovers and that would make it a very viable investment choice for many. It would therefore be automatic that the increase in demand would lead to an increase in share prices since every investor wants a share of any profitable business.