The markets have been rather fickle lately in how the choose to interpret news. Sometimes an earnings warning sends the market tumbling, other times traders shake it off and the market moves higher. This morning the later was true. A story in The Wall Street Journal stated that the Federal Trade Commission has filed charges against Schering Plough (NYSE:SGP) for making illegal payments to delay generic drugs from reaching the market.
Schering Plough 60-minute chart
Initially the SGP fell as low as $34, but then rallied early in the day back to $36 at about the same time the purchasing managers report came in better than expected. Coincidently, the $34 level was also support on Schering's daily chart. While Schering's chart is still ugly, the ability for support to hold on bad news is a small victory. Du Pont (NYSE:DD) was also up 1.4 points at one point today after announcing that it will cut 4% of its workforce. Even American Express (NYSE:AXP) had rallied $1 off its lows after warning about earnings. Then George W. Bush makes a brief statement about the spy plane that crashed in China, and minutes later stocks start to fall. It could just be a coincidence, but it could also show touchy investors are right now.