Twitter is known for having on-the-spot info as people Tweet any news they learn of – almost immediately. And, according to Barron’s, Twitter has a rather significant influence on stock and options trading.

Jon Najarian, of optionmonster.com, says it was on Twitter that he first heard the news that Matrixx Initiatives’ (MTXX) Zicam damaged people’s sense of smell.

“Since brokers have to save instant messages and e-mail, but thus far have no such mandate for tweets, well, you can guess that the far more discreet traffic is on Twitter. Guys started tweeting and the stock dropped from $19 to $13.”

Twittering stock news ehh?

Speaking of “stocks,” the Securities and Exchange Commission (SEC) has launched an informal inquiry into MTXX’s handling of a warning letter issued by the FDA last week over Zicam. MTXX received a letter of inquiry from the SEC on June 19th.

MTXX pulled all its Zicam nasal products from the market last week after the FDA warned consumers that Zicam lead to anosmia, or permanent loss of smell.

Stay tuned…

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