The Market Hears What It Wants to Hear

 | Oct 26, 2011 | 6:27 PM EDT  | Comments
  • Comment
  • Print Print
  • Print
Stock quotes in this article:

nsc

,

wlt

Sometimes the market is so infuriating. When the market makes its mind up that something's wrong or is about to go wrong, when it thinks that a company is dissembling or clueless, it just doesn't matter what is said.

Such was the case with Norfolk Southern (NSC) not that long ago when its stock was in free fall when a couple of coal companies had screwed up and preannounced bad numbers.

It didn't matter that Norfolk Southern at a conference the day after the screw-ups presented numbers that were up to the minute, showing how great the coal-car loadings were. It didn't matter that NSC basically assured you that business in September was off the charts. All that mattered was that Walter Energy (WLT) said that it saw earnings for the next quarter at one-third of what it had told people earlier. That caused NSC to drop almost 10 points in two days!

Now we see the real numbers, which were exactly what NSC said they would be. No, maybe a little better. And the stock is screaming higher after hours.

Infuriating. Admittedly, if Germany had stalked out of the talks or if France said, "Forget it, take a hike, Greece," then NSC would be at $65 instead of $72, where it is trading after hours.

But they didn't, and a huge gain has been made. The moral? How about trust a company like Norfolk Southern, which is as conservative as a company could be and better run than just about any other out there?

Columnist Conversations

Right now ICE is still considered to be within a larger downtrend unless the zones discussed in the article (t...
big X up 8%+ after hours. 30 last. nice short squeeze.
Market woke up a bit today to the fact that the tensions emanating out of Ukraine are not going anywhere as th...
In my article this morning, I speculated this could be the bottom for Twitter. I thought investors would shif...

BEST IDEAS

REAL MONEY'S BEST IDEAS

Columnist Tweets

BROKERAGE PARTNERS

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.


TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.