Burying Bad News, 11/19/12
Published: Monday, November 19th 2012
While investors are in a tryptophan-induced coma on the day after Thanksgiving, companies will be releasing information they’re legally obligated to report in the hopes that the bad news will get buried and overlooked.
This sneaky practice is just one way that this week will be a strange one despite the fact that it’s a short trading week. Plus trading volume will be light, causing overreactions to good or bad news. So once again, don’t panic on big drops, but don’t get hopeful on large gains.
Last week was bad news for the entire market as stocks bled out quickly during the panic over the coming fiscal cliff. Health care was no exception with Pfizer, Merck, Gilead and Regeneraon all down. Gilead was down even though it had a ratings upgrade on positive hep C trial data. However, Pfizer took a dip on poor trials for Lyrica.
If you have any questions for Marek, he can be contacted through Twitter at @MarekFuchs.
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Marek Fuchs was a stockbroker for Shearson Lehman Brothers before becoming a journalist who wrote The New York Times' "County Lines" column for six years. Marek speaks regularly on business and journalism issues at venues ranging from annual meetings of the Society of American Business Editors and Writers to PBS to National Public Radio. His last book, A Cold-Blooded Business, was called "riveting" by Kirkus Reviews and next book, Local Heroes: Portraits of American Volunteer Firefighters is due out in 2012. He is on the writing faculty at Sarah Lawrence College. When Marek is not writing, teaching or filming videos, he serves as a volunteer firefighter.