Herbalife Ltd. Shares Surge Higher Only To Reverse Gains Following Fox Business News Tweet

Charles Gasparino of Fox Business News tweeted that Herbalife Ltd. (NYSE: HLF) informed its investors that the FTC will not shut down the company, but it does expect some disciplinary action.

.$HLF tells investors FTC will NOT shut down the co but it expects some disciplinary action more @MelissaAFrancis 2pm @FoxBusiness

— Charles Gasparino (@CGasparino) October 7, 2014

Shares of Herbalife surged to an intra-day high of $48.02 following the tweet, but quickly reversed gains and traded to $45.11. Shares rebounded to trade off its lows $46.02.

Traders may have initially placed too much optimism in Gasparino's tweet before digesting the entire message and re-evaluating the news.