This paper explores whether managers strategically time the dissemination of bad news on sunny days to leverage positive investor mood. Our empirical evidence suggests that managers are more likely to announce bad news on sunny days and tend to reschedule bad news earnings announcements from cloudy days to sunny days when accurate weather forecasts are available. Further analysis shows that the market reacts more negatively to bad news released on non-sunny days compared with news released on sunny days, and the post-earnings announcement drift is lower for bad news announced on non-sunny days than on sunny days. In addition, we find that the strategic disclosure of bad news (i.e., disclosing bad news on sunny days) is not followed by more insider selling, but is more likely to be driven by firms fear of high litigation risks.