The headline and first four paragraphs of one article pointed in one direction, while the headline and first three paragraphs of another article pointed in an entirely different direction.
: "Tiffany Jumps After Store Sales Drop Less Than Estimated."
took a different stance: "Tiffany expects pressure on profit to ease; shares up."
Who was right? If we're speaking in absolute and certain terms, the only possible answer is: who knows? Pegging the reason for a stock move in inarguable terms is akin to pinning a wave upon the shore. Not easy -- and probably a fool's game.
But in all probability,
is right. The stock is up on a positive feel for future margins. Moreover, the reason
is right offers insight into stock movement.
Stocks are anticipatory mechanisms. As such, the future -- and forecasts about the future -- weigh more heavily than any relief over the past. In this case, traders probably see the veritable "light-at-the-end-of-the-tunnel."
You can certainly mount an argument that the light is not there, but, as often happens, enough traders spotted it to move the stock higher.
At the time of publication, the author held no positions in any of the stocks mentioned.
This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
At the time of publication, Fuchs had no positions in any of the stocks mentioned in this column.
Marek Fuchs was a stockbroker for Shearson Lehman Brothers and a money manager before becoming a journalist who wrote The New York Times' "County Lines" column for six years. He also did back-up beat coverage of The New York Knicks for the paper's Sports section for two seasons and covered other professional and collegiate sports. He has contributed frequently to many of the Times' other sections, including National, Metro, Escapes, Style, Real Estate, Arts & Leisure, Travel, Money & Business, Circuits and the Op-Ed Page.
For his "Business Press Maven" column on how business and finance are covered by the media, Fuchs was named best business journalist critic in the nation by the Talking Biz website at The University of North Carolina School of Journalism and Mass Communication. Fuchs is a frequent speaker on the business media, in venues ranging from National Public Radio to the annual conference of the Society of American Business Editors and Writers.
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