This paper examines the causal impact of local media coverage on local trading activity in financial markets. Using data on 19 local trading regions corresponding to major U.S. cities and their local newspapers, the study finds that local media coverage strongly predicts local trading, after controlling for firm, earnings surprise, and investor characteristics. The effect is strongest when media coverage occurs shortly after an earnings announcement and disappears during extreme weather events, which disrupt media delivery but not the content. The study also finds that local media coverage significantly increases trading volume, with a 50% increase in local retail trading. The results suggest that media coverage directly influences investor behavior, rather than merely reflecting pre-existing investor preferences. The study uses a cross-sectional approach, comparing trading behavior in different regions with varying levels of media exposure. It also controls for potential endogeneity in media coverage by examining the effects of extreme weather on media delivery and trading activity. The results show that media coverage has a significant and consistent effect on trading volume, even when controlling for other factors. The study contributes to the literature on media effects on financial markets and the "volume puzzle," suggesting that differential media coverage can lead to heterogeneous investor information and increased trading volume. The findings highlight the importance of local media in shaping financial market behavior and the need for further research into the mechanisms underlying media effects on investor behavior.This paper examines the causal impact of local media coverage on local trading activity in financial markets. Using data on 19 local trading regions corresponding to major U.S. cities and their local newspapers, the study finds that local media coverage strongly predicts local trading, after controlling for firm, earnings surprise, and investor characteristics. The effect is strongest when media coverage occurs shortly after an earnings announcement and disappears during extreme weather events, which disrupt media delivery but not the content. The study also finds that local media coverage significantly increases trading volume, with a 50% increase in local retail trading. The results suggest that media coverage directly influences investor behavior, rather than merely reflecting pre-existing investor preferences. The study uses a cross-sectional approach, comparing trading behavior in different regions with varying levels of media exposure. It also controls for potential endogeneity in media coverage by examining the effects of extreme weather on media delivery and trading activity. The results show that media coverage has a significant and consistent effect on trading volume, even when controlling for other factors. The study contributes to the literature on media effects on financial markets and the "volume puzzle," suggesting that differential media coverage can lead to heterogeneous investor information and increased trading volume. The findings highlight the importance of local media in shaping financial market behavior and the need for further research into the mechanisms underlying media effects on investor behavior.