Today, the Dow Industrial Average (DJIA) closed above 11,000 for the first time in 18 months. The secular bear market rally continues to steam higher. Is the economy really that much better off today than it was 18 months ago (read: Dow 11,000: Then & Now).
Alcoa (AA) issued the first quarterly report of this earnings season. Analysts polled by Thomson Reuters expected an average gain of 10 cents per share on revenue of $5.24 billion.
THE REALITY CHECK: Alcoa (AA) delivered a net loss of $.20 cents per share on revenue of $4.9 billion. Analyst estimates MISSED by .30 cents on earnings and $324 million on revenue. Amidst the negative splash of news, the one bright note to keep in mind is the revenue number for Alcoa was a 20% rise over the same period a year ago.
In the quarterly conference call, President and CEO of Alcoa, Klaus Kleinfeld, expressed ‘improving’ market conditions as well as demand for aluminum.
Is Alcoa (AA) the first real sign of ‘sell the news’ this earnings season?
Disclosure: No positions in the companies mentioned.
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