There are many traders who trade on news. Some people believe in using breaking news as an arbitrage opportunity. They buy on hearing rumors and sell when the rumors prove to be true. This seeks to exploit the difference in investor perception and sentiment before and after the breaking news.
Others try to pick exact market tops and bottoms using news headlines. The more irrationally exuberant or hopelessly depressed the news, the more likely the market is at a turning point. This attempts to benefit from investor greed and panic at market turning points. It is a type of contrarian investing.
Yet another way to trade on news, especially if the news is insufficiently groundbreaking, is to scan them for continuation patterns. An uptrend can ignore negative news with rising prices, while a downtrend can ignore positive news with falling prices. These are good continuation patterns for trend traders.