The New Earnings Season Everyone is Talking About

Index ETFs rose back into the green today following Alcoa’s (NYSE:AA) moderately positive earnings report last night

factory, alcoa, NYSE:AA, earnings seasonAlcoa’s (NYSE:AA) moderately positive earnings report released last night seemed to push stocks and index ETFs back into the green today.  The SPDR S&P 500 ETF (NYSEARCA:SPY) gained .25%, the SPDR Dow Jones Industrial Average ETF (NYSEARCA:DIA) gained .49%, the PowerShares QQQ Trust Series 1 ETF (NASDAQ:QQQ) added .38%, and the iShares Russell 2000 Index ETF (NYSEARCA:IWM) rose .49%.

Index ETFs likely reacted to the positive Alcoa (NYSE:AA) earnings report released yesterday, which unofficially started the Q4 2012 earnings season.  The Alcoa (NYSE:AA) report beat expectations, and investors are widely anticipating the release of the Wells Fargo (NYSE:WFC) report this coming Friday.  After a tough 2012 of volatility, Federal easing, and weak economic reports, many think this earnings season could still be disappointing, but so far, Alcoa (NYSE:AA) has held strong.

No economic reports were released today, further supporting the notion that index ETFs are largely riding on earnings seasons results.  Unfortunately however, German industrial production rose only .2% in the month of November, again showing the signs of a European recession in full swing.

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Tomorrow and Friday could shake things up a bit, as we have new weekly unemployment claim numbers along with wholesale inventories tomorrow, and of course we have trade deficit, federal budget, and the all important release of the Wells Fargo (NYSE:WFC) earnings report this Friday.

And don’t forget the upcoming debt ceiling debate and sequestration battles, I think it is good that markets rose .40% on average today before the real drama hits town.

Bottom Line:  Alcoa’s (NYSE:AA) Q4 2012 earnings report likely boosted stocks and index ETFs today, although things could change tomorrow with new unemployment claims and the Wells Fargo (NYSE:WFC) earnings report this Friday.  Stay tuned.

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John Nyaradi is the author of The ETF Investing Premium Newsletter.