24 July 2002: Adelphia founders arrested; Dow soars anyway

Federal agents arrested Adelphia Communications founder John Rigas and two of his sons, charged with looting the cable company and hiding billions in debt. It was one more scandal in a summer of corporate fraud. The same day, the Dow rallied nearly 489 points, one of its biggest point gains up to then, after hitting a multi-year low. Bad news was everywhere, and prices had finally priced most of it in.

The lesson: Markets often bottom while scandals still dominate the headlines, not after the news improves.