Boeing Soars On Rumor Buffett Is Building A Stake

Every time Boeing stock threatens to slide into an intraday abyss, an "unexpected" rumor emerges, usually involving some whale investor deciding that this is the bottom. Today was no different, because just as the Dow's most important stock was sliding, a rumor was conveniently spread - this time by Street Insider's overeager clients - that Warren Buffett's Berkshire Hathaway is building a stake, and has reportedly acquired a $5 billion position on Tuesday. Needless to say, this is not the first time algos have fallen for this rumor, which some predicted as recently as yesterday was imminent.

Of course, there wasn't a shred of evidence that this is even remotely true, but by the time the rumor is denied in a few hours (or minutes) the stock has already surged and helped those who spread the rumor take their profits and run, and in the meantime helped avoid a rout in the Dow.