It is about expectations and what has already been priced into the stock.
People were expecting BAC to report higher earnings but then in their guidance they said that defaults on credit cards was higher than expected. People had already priced in the higher earnings what they didn't price in was such a bad report on credit card debts.
[Qoute]
C reports higher then expected earnings... drops $1-2
[/Quote]
I can't remember when that one happend
I don't think the stock going up $.40 had anything to do with the cut of pontiac. People were expecting Pontiac to be dropped for a while
I'm not really that knowledgable about the stock market so take my thoughts with a grain of salt.
I think you have to figure out what people have already priced into a stock to figure out how it will react to news.
Just my .02 cents...
Im lost as well... seems like the market acts in opposites...maybe someone can elaborate on this? is there some technical explanation for this activity?
BAC reports higher then expected earnings... drops $3-4
People were expecting BAC to report higher earnings but then in their guidance they said that defaults on credit cards was higher than expected. People had already priced in the higher earnings what they didn't price in was such a bad report on credit card debts.
[Qoute]
C reports higher then expected earnings... drops $1-2
[/Quote]
I can't remember when that one happend
People were expecting the drop and revenue and feared it was going to be even worse than it wasMicrosoft reports first drop ever... stock goes up $1-2
GM cuts pontiac... stock goes up $0.40
What gives???
I don't think the stock going up $.40 had anything to do with the cut of pontiac. People were expecting Pontiac to be dropped for a while
I'm not really that knowledgable about the stock market so take my thoughts with a grain of salt.
I think you have to figure out what people have already priced into a stock to figure out how it will react to news.
Just my .02 cents...
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