NEW YORK - We were flummoxed on October 20th when Comerica reported results that were decent and the stock immediately fell 10%. To see the puzzling Comerica Drop Now the stock is up nearly 1% from its quarterly results. J.P. Morgan and Bank of America which fell around 4% when they reported their quarters are still down over 4% from where they were before they reported. This is puzzling considering Comerica dropped more so its quarter must have been worse.
This begs the questions what are investors doing when these companies report? The Comerica drop was certainly puzzling but it gave savvy investors a chance to get in at a lower price. What was most puzzling about the drop was that there was not much trading down to the 10% drop in the premarket it was 1 or 2 trades that rocketed the stock down and the stock stayed at this level for nearly a month.
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