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Financial Analysis with DSPy ReAct and Yahoo Finance News

This tutorial shows how to build a financial analysis agent using DSPy ReAct with LangChain's Yahoo Finance News tool for real-time market analysis.

What You'll Build

A financial agent that fetches news, analyzes sentiment, and provides investment insights.

Setup

pip install dspy langchain langchain-community yfinance

Step 1: Convert LangChain Tool to DSPy

import dspy
from langchain_community.tools.yahoo_finance_news import YahooFinanceNewsTool
from dspy.adapters.types.tool import Tool
import json
import yfinance as yf

# Configure DSPy
lm = dspy.LM(model='openai/gpt-4o-mini')
dspy.configure(lm=lm)

# Convert LangChain Yahoo Finance tool to DSPy
yahoo_finance_tool = YahooFinanceNewsTool()
finance_news_tool = Tool.from_langchain(yahoo_finance_tool)

Step 2: Create Supporting Financial Tools

def get_stock_price(ticker: str) -> str:
    """Get current stock price and basic info."""
    try:
        stock = yf.Ticker(ticker)
        info = stock.info
        hist = stock.history(period="1d")

        if hist.empty:
            return f"Could not retrieve data for {ticker}"

        current_price = hist['Close'].iloc[-1]
        prev_close = info.get('previousClose', current_price)
        change_pct = ((current_price - prev_close) / prev_close * 100) if prev_close else 0

        result = {
            "ticker": ticker,
            "price": round(current_price, 2),
            "change_percent": round(change_pct, 2),
            "company": info.get('longName', ticker)
        }

        return json.dumps(result)
    except Exception as e:
        return f"Error: {str(e)}"

def compare_stocks(tickers: str) -> str:
    """Compare multiple stocks (comma-separated)."""
    try:
        ticker_list = [t.strip().upper() for t in tickers.split(',')]
        comparison = []

        for ticker in ticker_list:
            stock = yf.Ticker(ticker)
            info = stock.info
            hist = stock.history(period="1d")

            if not hist.empty:
                current_price = hist['Close'].iloc[-1]
                prev_close = info.get('previousClose', current_price)
                change_pct = ((current_price - prev_close) / prev_close * 100) if prev_close else 0

                comparison.append({
                    "ticker": ticker,
                    "price": round(current_price, 2),
                    "change_percent": round(change_pct, 2)
                })

        return json.dumps(comparison)
    except Exception as e:
        return f"Error: {str(e)}"

Step 3: Build the Financial ReAct Agent

class FinancialAnalysisAgent(dspy.Module):
    """ReAct agent for financial analysis using Yahoo Finance data."""

    def __init__(self):
        super().__init__()

        # Combine all tools
        self.tools = [
            finance_news_tool,  # LangChain Yahoo Finance News
            get_stock_price,
            compare_stocks
        ]

        # Initialize ReAct
        self.react = dspy.ReAct(
            signature="financial_query -> analysis_response",
            tools=self.tools,
            max_iters=6
        )

    def forward(self, financial_query: str):
        return self.react(financial_query=financial_query)

Step 4: Run Financial Analysis

def run_financial_demo():
    """Demo of the financial analysis agent."""

    # Initialize agent
    agent = FinancialAnalysisAgent()

    # Example queries
    queries = [
        "What's the latest news about Apple (AAPL) and how might it affect the stock price?",
        "Compare AAPL, GOOGL, and MSFT performance",
        "Find recent Tesla news and analyze sentiment"
    ]

    for query in queries:
        print(f"Query: {query}")
        response = agent(financial_query=query)
        print(f"Analysis: {response.analysis_response}")
        print("-" * 50)

# Run the demo
if __name__ == "__main__":
    run_financial_demo()

Example Output

When you run the agent with a query like "What's the latest news about Apple?", it will:

  1. Use the Yahoo Finance News tool to fetch recent Apple news
  2. Get current stock price data
  3. Analyze the information and provide insights

Sample Response: 

Analysis: Given the current price of Apple (AAPL) at $196.58 and the slight increase of 0.48%, it appears that the stock is performing steadily in the market. However, the inability to access the latest news means that any significant developments that could influence investor sentiment and stock price are unknown. Investors should keep an eye on upcoming announcements or market trends that could impact Apple's performance, especially in comparison to other tech stocks like Microsoft (MSFT), which is also showing a positive trend.

Key Benefits

  • Tool Integration: Seamlessly combine LangChain tools with DSPy ReAct
  • Real-time Data: Access current market data and news
  • Extensible: Easy to add more financial analysis tools
  • Intelligent Reasoning: ReAct framework provides step-by-step analysis

This tutorial shows how DSPy's ReAct framework works with LangChain's financial tools to create intelligent market analysis agents.