• Most Popular
  • Most Shared

J.C. Penney stock jumps following influential tweet

Stocks

   

Thu Jul 26, 2012 1:25am IST

(Reuters) - Shares of J.C. Penney Co Inc (JCP.N) jumped almost 10 percent briefly on Wednesday after a well-known fashion editor sent a glowing message about the department store's revamp under chief executive Ron Johnson on social networking website Twitter.

"I'm @jcpenney's HQ. Thank you Ron Johson (sic) for the walk through of JCP's prototype. Get ready to shop! Its (sic) going to be a game changer!" Nina Garcia, Marie Claire magazine fashion editor and judge on television show "Project Runway", said in a tweet.

Garcia also signed on last week as J.C. Penney's "Style Voice" and fashion collection curator.

Penney shares rose to as much as $23.09. The stock was up 4.9 percent at $22.02 later on Wednesday afternoon on the New York Stock Exchange.

TD Ameritrade chief derivatives strategist J.J. Kinahan pointed to the message in explaining the share spike.

"With that we saw the stock go sharply higher" along with increased buying in call options, a bullish play, Kinahan said.

Some analysts questioned whether the tweet by Garcia caused the stock move, but could not point to another reason for the jump.

A J.C. Penney spokesman could not immediately be reached for comment.

(Reporting by Brad Dorfman and Doris Frankel in Chicago; Editing by Dale Hudson)

We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/
Comments (2)
AppleCritter wrote:
JC Penney’s ethics policy requires Nina Garcia to speak through JCP media relations. It is unethical for Nina Garcia tweet JCP company business and cause moves in the JCP stock price. If Ms Garcia’s tweet had moved JC Penney’s stock price lower, she would be serious trouble with JCP management.

Jul 25, 2012 2:42am IST  --  Report as abuse
AppleCritter wrote:
JC Penney’s ethics policy requires Nina Garcia to speak through JCP media relations. It is unethical for Nina Garcia tweet JCP company business and cause moves in the JCP stock price. If Ms Garcia’s tweet had moved JC Penney’s stock price lower, she would be serious trouble with JCP management.

Jul 25, 2012 3:15am IST  --  Report as abuse
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.