Don't discourage rumors and gossip. Your job is to catch and kill the misinformation. 

How to catch & kill the misinformation 

• Expect rumors & gossip - uncertainty fuels the rumor mill
• Welcome the misinformation - you can't deal with what you don't know
• Separate fact from fiction - people often misinterpret news and events
• Poke fun at the fiction - highlight any illogical conclusions or wild assumptions
• Discredit the source - tie illogical conclusions and wild assumptions back to the source
• Don't make promises you can't keep - some rumors might be true
• Deal with your cynics - help them see a way forward or a way out