NEW YORK ( TheStreet) -- Puzzling out why Tiffany ( TIF) stock leapt ever higher after its earnings report Monday is deceptively difficult, at least if you read the media.
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. Here was Bloomberg: "Tiffany Jumps After Store Sales Drop Less Than Estimated." Meanwhile Reuters 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, Reuters is right. The stock is up on a positive feel for future margins. Moreover, the reason Reuters 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.