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1400.0
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2013-04-10 00:00:00 UTC
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Alcoa Technology Licensed to Chemetall - Analyst Blog
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AA
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https://www.nasdaq.com/articles/alcoa-technology-licensed-to-chemetall-analyst-blog-2013-04-10
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Aluminum giant Alcoa inc. ( AA ) is licensing its pre-treatment bonding technology to Chemetall, a division of Rockwood Holdings, Inc. ( ROC ), in an exclusive global distribution pact. The Alcoa 951 is a breakthrough technology and is the new pre-treatment bonding standard for aluminum sheet, extrusion and casting suppliers across the automotive industry.
Alcoa 951 is a patented, chrome-free pre-treatment that enables production of more durable bonds between an aluminum substrate and a structural adhesive used in an assembly process. Alcoa reported that Alcoa 951 has been proven to be up to nine times more durable than titanium zirconium applications that were more widely used in the automotive industry in the past.
Alcoa 951 technology is significantly beneficial for Alcoa's customers and is a perfect example of Alcoa Technology Advantage. The technology makes possible wide usage of aluminum throughout the automotive industry and help in making mass-produced aluminum-intensive vehicles possible, thus saving fuel.
As per automotive original equipment manufacturers (OEMs), the use of aluminum in cars is expected to double by 2025 as automakers seek more fuel efficiency by reducing vehicle mass. Currently, aluminum represents the second largest-volume component material in automotive vehicles. Many OEMs are expanding aluminum use from heat exchangers, wheels, drive shafts, engine blocks, hoods and deck lids to develop aluminum intensive vehicles (AIVs) by converting the body in white, or body structure, to aluminum.
By collaborating with Chemetall, Alcoa will be able to commercialize adhesive bonding of aluminum structures in high-volume automotive applications.
Alcoa is the world leader with respect to production and management of primary aluminum, fabricated aluminum, and alumina as well as the world's largest miner of bauxite and refiner of alumina.
Alcoa released its first quarter 2013 financial results on Apr 8. The company saw its profit surge roughly 59% in first-quarter 2013, buoyed by strong aluminum demand. It posted a profit of $149 million or 13 cents per share in the quarter, exceeding the profit of $94 million or 9 cents per share recorded a year ago. The results were driven by strong demand across the aerospace and auto markets.
Excluding one-time special items, Alcoa earned $121 million or 11 cents a share in the quarter, beating the Zacks Consensus Estimate by a penny and also coming ahead of $105 million or 10 cents per share posted in the year-ago quarter.
Revenues declined roughly 3% to $5,833 million from $6,006 million in the year-ago quarter and were below the Zacks Consensus Estimate of $5,857 million. Sales were hurt by lower aluminum prices and reduced production in Alcoa's European primary metals business.
Alcoa currently retains a short-term Zacks Rank #3 (Hold).
Other companies in the mining industry with favorable Zacks Rank are Atlatsa Resources Corporation ( ATL ) and Anglo American Platinum Ltd. ( AGPPY ). Both hold a Zacks Rank #2 (Buy).
ALCOA INC (AA): Free Stock Analysis Report
ANGLO AMER PLAT (AGPPY): Get Free Report
ATLATSA RESRCS (ATL): Free Stock Analysis Report
ROCKWOOD HLDGS (ROC): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Aluminum giant Alcoa inc. ( AA ) is licensing its pre-treatment bonding technology to Chemetall, a division of Rockwood Holdings, Inc. ( ROC ), in an exclusive global distribution pact. ALCOA INC (AA): Free Stock Analysis Report ANGLO AMER PLAT (AGPPY): Get Free Report ATLATSA RESRCS (ATL): Free Stock Analysis Report ROCKWOOD HLDGS (ROC): Free Stock Analysis Report To read this article on Zacks.com click here. Alcoa 951 is a patented, chrome-free pre-treatment that enables production of more durable bonds between an aluminum substrate and a structural adhesive used in an assembly process.
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Aluminum giant Alcoa inc. ( AA ) is licensing its pre-treatment bonding technology to Chemetall, a division of Rockwood Holdings, Inc. ( ROC ), in an exclusive global distribution pact. ALCOA INC (AA): Free Stock Analysis Report ANGLO AMER PLAT (AGPPY): Get Free Report ATLATSA RESRCS (ATL): Free Stock Analysis Report ROCKWOOD HLDGS (ROC): Free Stock Analysis Report To read this article on Zacks.com click here. It posted a profit of $149 million or 13 cents per share in the quarter, exceeding the profit of $94 million or 9 cents per share recorded a year ago.
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ALCOA INC (AA): Free Stock Analysis Report ANGLO AMER PLAT (AGPPY): Get Free Report ATLATSA RESRCS (ATL): Free Stock Analysis Report ROCKWOOD HLDGS (ROC): Free Stock Analysis Report To read this article on Zacks.com click here. Aluminum giant Alcoa inc. ( AA ) is licensing its pre-treatment bonding technology to Chemetall, a division of Rockwood Holdings, Inc. ( ROC ), in an exclusive global distribution pact. Alcoa 951 technology is significantly beneficial for Alcoa's customers and is a perfect example of Alcoa Technology Advantage.
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Aluminum giant Alcoa inc. ( AA ) is licensing its pre-treatment bonding technology to Chemetall, a division of Rockwood Holdings, Inc. ( ROC ), in an exclusive global distribution pact. ALCOA INC (AA): Free Stock Analysis Report ANGLO AMER PLAT (AGPPY): Get Free Report ATLATSA RESRCS (ATL): Free Stock Analysis Report ROCKWOOD HLDGS (ROC): Free Stock Analysis Report To read this article on Zacks.com click here. The Alcoa 951 is a breakthrough technology and is the new pre-treatment bonding standard for aluminum sheet, extrusion and casting suppliers across the automotive industry.
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1401.0
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2013-04-09 00:00:00 UTC
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After Hours Most Active for Apr 9, 2013 : LO, QQQ, T, MSFT, KO, ORCL, KRG, CSCO, AA, MTCN, MU, FB
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AA
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https://www.nasdaq.com/articles/after-hours-most-active-apr-9-2013-lo-qqq-t-msft-ko-orcl-krg-csco-aa-mtcn-mu-fb-2013-04-09
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The NASDAQ 100 After Hours Indicator is up .23 to 2,804.9. The total After hours volume is currently 26,267,632 shares traded.
The following are the most active stocks for the after hours session :
Lorillard, Inc ( LO ) is unchanged at $41.25, with 3,516,351 shares traded. LO's current last sale is 89.67% of the target price of $46.
PowerShares QQQ Trust, Series 1 ( QQQ ) is +0.04 at $68.72, with 3,368,438 shares traded. This represents a 14.46% increase from its 52 Week Low.
AT&T Inc. ( T ) is unchanged at $37.76, with 3,264,423 shares traded. T's current last sale is 102.05% of the target price of $37.
Microsoft Corporation ( MSFT ) is +0.01 at $29.62, with 2,100,424 shares traded. As reported by Zacks, the current mean recommendation for MSFT is in the "buy range".
Coca-Cola Company (The) ( KO ) is +0.0024 at $40.71, with 1,619,879 shares traded.KO is scheduled to provide an earnings report on 4/16/2013, for the fiscal quarter ending Mar2013. The consensus earnings per share forecast is 0.45 per share, which represents a 44 percent increase over the EPS one Year Ago
Oracle Corporation ( ORCL ) is unchanged at $33.04, with 1,145,103 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending May 2013. The consensus EPS forecast is $0.85. As reported by Zacks, the current mean recommendation for ORCL is in the "buy range".
Kite Realty Group Trust ( KRG ) is unchanged at $6.55, with 813,504 shares traded. KRG's current last sale is 93.57% of the target price of $7.
Cisco Systems, Inc. ( CSCO ) is unchanged at $20.97, with 758,272 shares traded. As reported by Zacks, the current mean recommendation for CSCO is in the "buy range".
Alcoa Inc. ( AA ) is +0.01 at $8.40, with 748,967 shares traded. AA's current last sale is 84% of the target price of $10.
ArcelorMittal ( MTCN ) is -0.2273 at $20.59, with 706,074 shares traded.
Micron Technology, Inc. ( MU ) is unchanged at $9.57, with 667,823 shares traded. Over the last four weeks they have had 13 up revisions for the earnings forecast, for the fiscal quarter ending May 2013. The consensus EPS forecast is $-0.02. As reported by Zacks, the current mean recommendation for MU is in the "buy range".
Facebook, Inc. ( FB ) is +0.05 at $26.64, with 550,541 shares traded. As reported by Zacks, the current mean recommendation for FB is in the "buy range".
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alcoa Inc. ( AA ) is +0.01 at $8.40, with 748,967 shares traded. AA's current last sale is 84% of the target price of $10. The following are the most active stocks for the after hours session : Lorillard, Inc ( LO ) is unchanged at $41.25, with 3,516,351 shares traded.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Alcoa Inc. ( AA ) is +0.01 at $8.40, with 748,967 shares traded. AA's current last sale is 84% of the target price of $10.
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Alcoa Inc. ( AA ) is +0.01 at $8.40, with 748,967 shares traded. AA's current last sale is 84% of the target price of $10. The following are the most active stocks for the after hours session : Lorillard, Inc ( LO ) is unchanged at $41.25, with 3,516,351 shares traded.
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Alcoa Inc. ( AA ) is +0.01 at $8.40, with 748,967 shares traded. AA's current last sale is 84% of the target price of $10. AT&T Inc. ( T ) is unchanged at $37.76, with 3,264,423 shares traded.
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1402.0
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2013-04-09 00:00:00 UTC
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What to look for this earnings season? - Ahead of Wall Street
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AA
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https://www.nasdaq.com/articles/what-look-earnings-season-ahead-wall-street-2013-04-09
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Tuesday, April 9, 2013
A minor cottage industry of sorts springs into action around this time every quarter to prove that Alcoa's ( AA ) results tell us something about how other companies' results will be in the earnings season. Take all of those comments with a spoonful of salt. Yes, demand for aluminum products now comes from a variety of industries like automotives and aerospace and other. But to claim that Alcoa's fortunes carry any relevance beyond the mining or even basic materials space is simply misleading.
As such, Alcoa's strong earnings beat after the close yesterday is relevant only to itself and its own industry - it doesn't tell us much beyond that. If anything, the earnings reports from FedEx ( FDX ) and Oracle ( ORCL ) that came out before Alcoa carry a lot more informational value about broader earnings picture.
So what should we be looking for this earnings season?
Expectations for Q1 remain low. Total earnings are expected to be down -2.6% from the same period last year. Tough comparisons and weak guidance account for the mediocre growth expectations (2012 Q1 produced the highest quarterly earnings total since the current earnings cycle started in 2009). But since roughly two-thirds of the companies typically beat expectations in a typical quarter, the final earnings growth tall will likely be better than current expectations. My sense is that if Q1 is like any other quarter, then we will see a growth rate close to the flat line - meaning essentially no growth.
What would matter much more than the proportion and level of 'beats' will be guidance. And the reason for that is that expectations for the coming quarters, particularly the second half of the year, remain high. Current consensus expectations are for total earnings to be up +2.3% in the second quarter and up +10.9% in the second half of the year. Guidance will determine whether those expectations will hold up or not. My sense is that they wouldn't hold up and estimates for Q2 will start coming down as the Q1 earnings season gets into high gear.
With economic data already showing signs of renewed weakness, it will be hard for the market to hold its ground in such an earnings background. This is pointing to tougher times for the market in the Spring/Summer day.
Sheraz Mian
Director of Research
ALCOA INC (AA): Free Stock Analysis Report
FEDEX CORP (FDX): Free Stock Analysis Report
ORACLE CORP (ORCL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Tuesday, April 9, 2013 A minor cottage industry of sorts springs into action around this time every quarter to prove that Alcoa's ( AA ) results tell us something about how other companies' results will be in the earnings season. Sheraz Mian Director of Research ALCOA INC (AA): Free Stock Analysis Report FEDEX CORP (FDX): Free Stock Analysis Report ORACLE CORP (ORCL): Free Stock Analysis Report To read this article on Zacks.com click here. But to claim that Alcoa's fortunes carry any relevance beyond the mining or even basic materials space is simply misleading.
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Sheraz Mian Director of Research ALCOA INC (AA): Free Stock Analysis Report FEDEX CORP (FDX): Free Stock Analysis Report ORACLE CORP (ORCL): Free Stock Analysis Report To read this article on Zacks.com click here. Tuesday, April 9, 2013 A minor cottage industry of sorts springs into action around this time every quarter to prove that Alcoa's ( AA ) results tell us something about how other companies' results will be in the earnings season. But since roughly two-thirds of the companies typically beat expectations in a typical quarter, the final earnings growth tall will likely be better than current expectations.
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Sheraz Mian Director of Research ALCOA INC (AA): Free Stock Analysis Report FEDEX CORP (FDX): Free Stock Analysis Report ORACLE CORP (ORCL): Free Stock Analysis Report To read this article on Zacks.com click here. Tuesday, April 9, 2013 A minor cottage industry of sorts springs into action around this time every quarter to prove that Alcoa's ( AA ) results tell us something about how other companies' results will be in the earnings season. Tough comparisons and weak guidance account for the mediocre growth expectations (2012 Q1 produced the highest quarterly earnings total since the current earnings cycle started in 2009).
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Tuesday, April 9, 2013 A minor cottage industry of sorts springs into action around this time every quarter to prove that Alcoa's ( AA ) results tell us something about how other companies' results will be in the earnings season. Sheraz Mian Director of Research ALCOA INC (AA): Free Stock Analysis Report FEDEX CORP (FDX): Free Stock Analysis Report ORACLE CORP (ORCL): Free Stock Analysis Report To read this article on Zacks.com click here. Tough comparisons and weak guidance account for the mediocre growth expectations (2012 Q1 produced the highest quarterly earnings total since the current earnings cycle started in 2009).
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1403.0
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2013-04-09 00:00:00 UTC
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Mid-Morning Market Update: JC Penney Falls As Cliffs Natural Resources Rallies
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AA
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https://www.nasdaq.com/articles/mid-morning-market-update-jc-penney-falls-cliffs-natural-resources-rallies-2013-04-09
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Following the market open Tuesday morning, the Dow traded up 0.07 percent to 14,623.98 while the NASDAQ rose 0.15 percent to 3,227.44. The S&P also rose, increasing 0.11 percent to 1,564.51.
Index Technicals: The S&P 500 looks to be overtaking 1,560 with 1,570/1,575 highs acting as the next resistance.
The Dow looks to be taking 14,600 resistance with 14,700 acting as resistance above that.
The Russell looks to be hitting its 20 EMA resistance at 934.76 and 940 resistance above that.
Finally, the NASDAQ looks to break through its 3,200 resistance with 3,240 acting as resistance above that.
Top Headline After the close Monday, J.C. Penney (NYSE: JCP ) announced that its CEO, Ron Johnson, had resigned.
Following the news, shares jumped as much as ten percent, but quickly gave up the gains and went red once it was released that former CEO Mike Ullman would be taking back the helm.
Shares are currently down 11.66 percent to $14.02.
Equities Trading UP Cliffs Natural Resources (NYSE: CLF ) traded up 5.93 percent to $19.91 this morning after a group of miners have been rallying on Alcoa's (NYSE: AA ) results after the close yesterday.
Shares of VirnetX Holdings (NYSE: VHC ) were also up, gaining 4.00 percent to $19.76 after the European patent office granted the company a new patent.
Allied Nevada Gold (NYSE: ANV ) was also up, gaining 15.18 percent to $13.58 after releasing preliminary after the close Monday.
Equities Trading DOWN Advanced Micro Devices (NYSE: AMD ) traded down sharply at the open, falling 2.82 percent to $2.52 despite news that its chips would be used in Microsoft's (NASDAQ: MSFT ) new Xbox console.
Marvell Technology (NASDAQ: MRVL ) was also down, falling 2.20 percent to $10.24 after news got out that David Einhorn had sold his shares of the company.
Shares of Starwood Property Trust (NYSE: STWD ) were down as well, dropping 2.83 percent to $27.42 after pricing of its 26.5 million share secondary offering. The price was not disclosed.
Commodities In commodity news, oil traded down 0.33 percent to $93.05, while gold traded up 0.62 percent to $1,582.20.
Silver traded up 1.54 percent Tuesday to $27.73, while copper rose 1.07 percent to $3.40.
Eurozone In the eurozone this morning, markets rose overnight as fears stemming from Portugal and Cyprus managed to blow over.
The FTSE MIB index lead the charge, gaining 1.14 percent, while the Spanish Ibex was close behind, gaining 0.92 percent.
Economics There were no major economic releases Tuesday.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Equities Trading UP Cliffs Natural Resources (NYSE: CLF ) traded up 5.93 percent to $19.91 this morning after a group of miners have been rallying on Alcoa's (NYSE: AA ) results after the close yesterday. Top Headline After the close Monday, J.C. Penney (NYSE: JCP ) announced that its CEO, Ron Johnson, had resigned. Following the news, shares jumped as much as ten percent, but quickly gave up the gains and went red once it was released that former CEO Mike Ullman would be taking back the helm.
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Equities Trading UP Cliffs Natural Resources (NYSE: CLF ) traded up 5.93 percent to $19.91 this morning after a group of miners have been rallying on Alcoa's (NYSE: AA ) results after the close yesterday. Following the market open Tuesday morning, the Dow traded up 0.07 percent to 14,623.98 while the NASDAQ rose 0.15 percent to 3,227.44. Commodities In commodity news, oil traded down 0.33 percent to $93.05, while gold traded up 0.62 percent to $1,582.20.
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Equities Trading UP Cliffs Natural Resources (NYSE: CLF ) traded up 5.93 percent to $19.91 this morning after a group of miners have been rallying on Alcoa's (NYSE: AA ) results after the close yesterday. Following the market open Tuesday morning, the Dow traded up 0.07 percent to 14,623.98 while the NASDAQ rose 0.15 percent to 3,227.44. Commodities In commodity news, oil traded down 0.33 percent to $93.05, while gold traded up 0.62 percent to $1,582.20.
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Equities Trading UP Cliffs Natural Resources (NYSE: CLF ) traded up 5.93 percent to $19.91 this morning after a group of miners have been rallying on Alcoa's (NYSE: AA ) results after the close yesterday. Following the market open Tuesday morning, the Dow traded up 0.07 percent to 14,623.98 while the NASDAQ rose 0.15 percent to 3,227.44. Shares are currently down 11.66 percent to $14.02.
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1404.0
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2013-04-09 00:00:00 UTC
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Dow Rallies to Another New High, While S&P 500 Falls Short
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AA
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https://www.nasdaq.com/articles/dow-rallies-another-new-high-while-sp-500-falls-short-2013-04-09
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"All in all, it was a light news day. Alcoa ( AA ) kicked off earnings season, but didn't react much, as the stock closed flat," noted Schaeffer's Senior Technical Strategist Ryan Detrick, CMT. Still, the Dow Jones Industrial Average (DJI) notched another new record high in afternoon trading, while the S&P 500 Index (SPX) hit its highest point in more than five years. "Late-day buying is a pattern we've been seeing recently," Detrick said, "and that's a really good sign."
Continue reading for more on today's market, including :
eBay Inc ( EBAY ) options traders are cautiously optimistic ahead of next week's earnings report.
Are Dell ( DELL ) speculators hoping for a sweeter buyout bid ?
Bearish speculators expect short-term downside in Bank of America ( BAC ) shares.
plus...
Another record-setting day for the Dow, a controversial shift at J.C. Penney ( JCP ), and a number of bullish bets on General Motors (GM).
The Dow Jones Industrial Average hasn't had a three-day losing streak yet this year, and it wasn't going to start today. The blue-chip index muscled 60 points, or 0.4%, higher to close at 14,673.46 and hit a new all-time high of 14,716.46 in mid-afternoon action. Two-thirds of the Dow's 30 components, gained today, with Microsoft (MSFT) leading the pack, up 3.6%. AA was unchanged on the day, while Procter & Gamble (PG) paced the nine decliners, shedding 0.7%.
The S&P 500 Index (SPX) came within 3 points of its all-time intraday high of 1,576.09 and notched a new five-year high of 1,573.89 in the process. At the close, the SPX was up 5.5 points, or 0.4%, at 1,568.61. The Nasdaq Composite (COMP) kept pace with its index peers, adding 16 points, or 0.5%, to settle at 3,237.86.
The CBOE Market Volatility Index (VIX) started off in the black but saw any gains unravel during the afternoon. By the close, the VIX was off 0.4 point, or 2.7%, at 12.84.
A Trader's Take :
"What can you say," asked Detrick, "the market once again rallied and is sitting near all-time highs. One continued concern is that small-caps didn't participate in this move higher. Still, today marked the 13th-straight positive Tuesday for the Dow -- an all-time record. Also," he continued, "First Solar (FSLR) issued some very positive comments regarding earnings, sparking a huge rally in solar names. Some of this optimism translated to the overall market, as we again found some solid buying during the afternoon."
3 Things to Know About Today's Market :
The J.C. Penney Company ( JCP ) saga took an interesting turn today, as the retailer's board ousted Ron Johnson in the midst of his campaign to re-imagine the venerable brand. Former CEO Myron Ullman was brought back to lead the company, prompting some criticism and a more than 12% drop in the shares. (Forbes)
James Bullard, head of the St. Louis Federal Reserve, said he still believes the unemployment rate will drop to 7% by the end of 2013, despite the weak jobs numbers posted in March. Bullard, who is more of a hawk than some of his Fed brethren, reiterated that the central bank will "slowly" reduce its bond-buying efforts as signs of economic growth emerge. (Bloomberg)
Wholesale inventories dropped 0.3% in February, the Commerce Department reported, posting their largest decline in 18 months. Economists were expecting inventories to grow by 0.5% during the month. (Reuters)
5 Stocks We Were Watching Today :
Call buyers continued to swoop in on General Motors (GM).
Bullish Molycorp Inc (MCP) traders targeted short-term gains with weekly options.
Call buyers bet on a new all-time high for Wal-Mart Stores (WMT) shares.
As JCP headed "back to the future" by appointing its former CEO, one large-scale call-spread buyer ran for the exits .
Biogen Idec (BIIB) scored a price-target hike worth $35.
For a look at today's options movers and commodities activity, head to page 2.
Commodities :
Supply concerns and a falling dollar boosted oil today, ahead of tomorrow's weekly report on inventories. May crude futures closed at $94.20 per barrel, up 84 cents, or just under 0.9%.
Bargain hunters descended on gold, after the precious metal sank in four of the past five sessions. The buying demand lifted June-dated gold by $14.20, or 0.9%, to $1,586.70 per ounce. This was the highest close for gold since April 1.
At the end of every market day, the staff at Schaeffer's Investment Research reviews the trading day in detail, covering major events and key market developments. Don't miss this critical, timely and insightful report. If you enjoyed today's edition of Market Recap, sign up here for free daily delivery straight to your inbox.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alcoa ( AA ) kicked off earnings season, but didn't react much, as the stock closed flat," noted Schaeffer's Senior Technical Strategist Ryan Detrick, CMT. AA was unchanged on the day, while Procter & Gamble (PG) paced the nine decliners, shedding 0.7%. Still, the Dow Jones Industrial Average (DJI) notched another new record high in afternoon trading, while the S&P 500 Index (SPX) hit its highest point in more than five years.
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Alcoa ( AA ) kicked off earnings season, but didn't react much, as the stock closed flat," noted Schaeffer's Senior Technical Strategist Ryan Detrick, CMT. AA was unchanged on the day, while Procter & Gamble (PG) paced the nine decliners, shedding 0.7%. Still, the Dow Jones Industrial Average (DJI) notched another new record high in afternoon trading, while the S&P 500 Index (SPX) hit its highest point in more than five years.
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Alcoa ( AA ) kicked off earnings season, but didn't react much, as the stock closed flat," noted Schaeffer's Senior Technical Strategist Ryan Detrick, CMT. AA was unchanged on the day, while Procter & Gamble (PG) paced the nine decliners, shedding 0.7%. Still, the Dow Jones Industrial Average (DJI) notched another new record high in afternoon trading, while the S&P 500 Index (SPX) hit its highest point in more than five years.
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Alcoa ( AA ) kicked off earnings season, but didn't react much, as the stock closed flat," noted Schaeffer's Senior Technical Strategist Ryan Detrick, CMT. AA was unchanged on the day, while Procter & Gamble (PG) paced the nine decliners, shedding 0.7%. "All in all, it was a light news day.
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1405.0
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2013-04-08 00:00:00 UTC
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After Hours Most Active for Apr 8, 2013 : AA, CX, TWX, KO, MTG, PNC^P, AMAT, QQQ, AKAM, AAPL, VCSH, INTC
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https://www.nasdaq.com/articles/after-hours-most-active-apr-8-2013-aa-cx-twx-ko-mtg-pncp-amat-qqq-akam-aapl-vcsh-intc-2013
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The NASDAQ 100 After Hours Indicator is up .66 to 2,786.79. The total After hours volume is currently 17,398,095 shares traded.
The following are the most active stocks for the after hours session :
Alcoa Inc. ( AA ) is -0.1 at $8.29, with 4,685,717 shares traded. RTT News Reports: Alcoa Q1 Profit Rises, Beats View - Quick Facts
Cemex S.A.B. de C.V. ( CX ) is -0.04 at $12.60, with 2,097,655 shares traded., following a 52-week high recorded in today's regular session.
Time Warner Inc. ( TWX ) is unchanged at $58.35, with 1,806,362 shares traded. As reported by Zacks, the current mean recommendation for TWX is in the "buy range".
Coca-Cola Company (The) ( KO ) is -0.1399 at $40.72, with 1,639,540 shares traded. As reported by Zacks, the current mean recommendation for KO is in the "buy range".
MGIC Investment Corporation ( MTG ) is unchanged at $5.45, with 1,460,044 shares traded. MTG's current last sale is 218% of the target price of $2.5.
PNC Financial Services Group, Inc. (The) (PNC^P) is -0.04 at $27.70, with 1,128,252 shares traded.
Applied Materials, Inc. ( AMAT ) is unchanged at $13.38, with 1,030,210 shares traded. AMAT's current last sale is 89.95% of the target price of $14.875.
PowerShares QQQ Trust, Series 1 ( QQQ ) is +0.12 at $68.34, with 850,311 shares traded. This represents a 13.82% increase from its 52 Week Low.
Akamai Technologies, Inc. ( AKAM ) is unchanged at $34.49, with 511,122 shares traded. As reported by Zacks, the current mean recommendation for AKAM is in the "buy range".
Apple Inc. ( AAPL ) is -0.22 at $425.99, with 475,043 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2013. The consensus EPS forecast is $15.17. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Vanguard Short-Term Corporate Bond ETF ( VCSH ) is +0.036 at $80.51, with 388,200 shares traded. This represents a 2.24% increase from its 52 Week Low.
Intel Corporation ( INTC ) is unchanged at $21.09, with 371,631 shares traded. INTC's current last sale is 94.79% of the target price of $22.25.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The following are the most active stocks for the after hours session : Alcoa Inc. ( AA ) is -0.1 at $8.29, with 4,685,717 shares traded. Apple Inc. ( AAPL ) is -0.22 at $425.99, with 475,043 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The following are the most active stocks for the after hours session : Alcoa Inc. ( AA ) is -0.1 at $8.29, with 4,685,717 shares traded. Apple Inc. ( AAPL ) is -0.22 at $425.99, with 475,043 shares traded.
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The following are the most active stocks for the after hours session : Alcoa Inc. ( AA ) is -0.1 at $8.29, with 4,685,717 shares traded. Apple Inc. ( AAPL ) is -0.22 at $425.99, with 475,043 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
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The following are the most active stocks for the after hours session : Alcoa Inc. ( AA ) is -0.1 at $8.29, with 4,685,717 shares traded. Apple Inc. ( AAPL ) is -0.22 at $425.99, with 475,043 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
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1406.0
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2013-04-08 00:00:00 UTC
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UPDATE: U.S. Stocks Range-Bound Slightly Lower; Alcoa Pre-Market Gains Foiled
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AA
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https://www.nasdaq.com/articles/update-us-stocks-range-bound-slightly-lower-alcoa-pre-market-gains-foiled-2013-04-08
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After futures pointed to a fractional gain for the big three U.S. stock indexes, equities opened the week with a slight fake, slipping modestly at the open. With no significant economic data releases on the calendar for today's session, market participants will likely turn their attention to another round of quarterly earnings, beginning today after the close when aluminum giant Alcoa ( AA ) kicks off proceedings.
Initially, U.S. stock futures were boosted by overseas news. Japan commenced its new bond-buying program today. The new stimulus program went smoothly, according to MarketWatch, citing analysts. As a result, the Nikkei surged almost 3%, while other Asian bourses posted slight gains with ongoing nuclear saber-rattling by North Korea tempering positive sentiment in the region.
Meanwhile, European bourses are showing modest gains as the region appears to, at least temporarily, have weathered the Cyprus financial crisis.
Market sentiment was also positive this morning ahead of Alcoa's impending quarterly report. Company shares were up 0.85% in the pre-market, but have pared those gains in morning trade, currently clinging to a $0.02 gain at $8.26. Analysts polled by Capital IQ are expecting the company to report Q1 EPS of $0.09 on revenues of $5.875 billion.
Investors will also have their ears to the ground during Federal Reserve Chairman Ben Bernanke's speech at 7:15 p.m. at an Atlanta Fed conference. His talk will be on lessons learned from U.S. bank stress tests.
U.S. jobs and manufacturing numbers last week missed analyst expectations, putting at least a temporary damper on the markets' extraordinary bull run of 2013. Corporate earnings on the domestic front, along with economic data points, should set the market tone over the next several weeks.
Commodity prices were mixed at midday, with oil up $0.45, at $93.15 a barrel, following notable weakness in prices last week. Natural gas continued to trade with strength, holding above the $4 mark, up $0.036 to $4.161 per million BTUs.
Gold futures have shed $5.80 to $1570.10 per ounce, while silver was down $0.75, to $27.145 per ounce. Copper was up $0.021 to $3.365.
Here's where the markets stood at mid-day:
NYSE Composite down 7.33 (-0.08%) to 8,9992.91
Dow Jones Industrial Average down 37.48 (-0.26%) to 14,527.77
S&P 500 down 0.94 (-0.06%) to 1,552.34
Nasdaq Composite Index down 3.52(-0.11%) to 3,200.33
GLOBAL SENTIMENT
Nikkei 225 Index up 2.80%
Hang Seng Index down 0.04%
Shanghai China Composite Index down 0.60%
FTSE 100 up 0.45%.
DAX up 0.30%.
CAC 40 up 0.42%.
NYSE SECTOR INDICES
NYSE Energy Sector Index (^NYE) down 16.64 (-0.13%) at 12,909.54
NYSE Financial Sector Index (^NYK) down 11.00 (-0.20%) to 5,430.40
NYSE Healthcare Sector Index (^NYP) down 18.69 (-0.21%) to 8,914.85
UPSIDE MOVERS:
(+ ) UNXL (+3.5%, but well below day highs) Shares jump after company says it inked a multi-million dollar deal with a major touch-screen ecosystem partner. It granted the partner a preferred price and capacity license for its UniBoss touch sensor technology. The license fees paid under the agreement will be used to build out an additional one million square feet per month of production capacity for UniBoss. The company will also work with its preferred price and capacity licensees to develop a global touch module supply chain for OEMs and ODMs, which includes die cutting, tab bonding, and lamination of the module to the display.
(+) HILL (+13.5%, hits new 52-week high) Stock surges to new 52-week high of $1.58 after company updated its guidance for Q1 2013 of non-GAAP net revenue of $44 million to $45 million and non-GAAP EPS of $(0.02) to $0.00. The expected non-GAAP net revenue results are within the guidance range provided on March 14, 2013 of $43 million to $46 million.
(+) GOL (+8.5%) Issue takes flight after company announced that SMILES S.A., a subsidiary that manages the Smiles program, finalized mileage sales to Banco Bradesco S.A., Banco do Brasil S.A. and Santander S.A. totaling around R$400 million, which will be received by SMILES on April 30, 2013.
DOWNSIDE MOVERS:
(-) EDAC (-4.4%) Share price slides after the company said that MidOcean Associates SPC, an affiliate of MidOcean Partners, and Public Sector Pension Investment Board are withdrawing their previously-announced unsolicited proposal to acquire all of the outstanding shares of EDAC common stock at $18.25 per share. The company's Board of Directors continues to unanimously recommend that shareholders accept the $17.75 per share offer by GB Aero Engine Merger Sub Inc.
(-) MTN (-0.6%) Stock traverses slightly downhill after Credit Suisse downgraded the stock to Neutral from Outperform. Price target is $64, down from $68 previously.
(-) IGC (+0.3%, has turned positive) Shares have turned postivie after company says it has scheduled to open the first of three beneficiation plants in Inner Mongolia on April 10.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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With no significant economic data releases on the calendar for today's session, market participants will likely turn their attention to another round of quarterly earnings, beginning today after the close when aluminum giant Alcoa ( AA ) kicks off proceedings. (+) HILL (+13.5%, hits new 52-week high) Stock surges to new 52-week high of $1.58 after company updated its guidance for Q1 2013 of non-GAAP net revenue of $44 million to $45 million and non-GAAP EPS of $(0.02) to $0.00. The expected non-GAAP net revenue results are within the guidance range provided on March 14, 2013 of $43 million to $46 million.
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(+) HILL (+13.5%, hits new 52-week high) Stock surges to new 52-week high of $1.58 after company updated its guidance for Q1 2013 of non-GAAP net revenue of $44 million to $45 million and non-GAAP EPS of $(0.02) to $0.00. With no significant economic data releases on the calendar for today's session, market participants will likely turn their attention to another round of quarterly earnings, beginning today after the close when aluminum giant Alcoa ( AA ) kicks off proceedings. The expected non-GAAP net revenue results are within the guidance range provided on March 14, 2013 of $43 million to $46 million.
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(+) HILL (+13.5%, hits new 52-week high) Stock surges to new 52-week high of $1.58 after company updated its guidance for Q1 2013 of non-GAAP net revenue of $44 million to $45 million and non-GAAP EPS of $(0.02) to $0.00. With no significant economic data releases on the calendar for today's session, market participants will likely turn their attention to another round of quarterly earnings, beginning today after the close when aluminum giant Alcoa ( AA ) kicks off proceedings. The expected non-GAAP net revenue results are within the guidance range provided on March 14, 2013 of $43 million to $46 million.
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With no significant economic data releases on the calendar for today's session, market participants will likely turn their attention to another round of quarterly earnings, beginning today after the close when aluminum giant Alcoa ( AA ) kicks off proceedings. (+) HILL (+13.5%, hits new 52-week high) Stock surges to new 52-week high of $1.58 after company updated its guidance for Q1 2013 of non-GAAP net revenue of $44 million to $45 million and non-GAAP EPS of $(0.02) to $0.00. The expected non-GAAP net revenue results are within the guidance range provided on March 14, 2013 of $43 million to $46 million.
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1407.0
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2013-04-08 00:00:00 UTC
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Benzinga Market Primer: Monday, April 8
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AA
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https://www.nasdaq.com/articles/benzinga-market-primer-monday-april-8-2013-04-08
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Futures Creep Higher Despite Korean Tensions, Weak Payrolls
U.S. equity futures crept higher in early pre-market trade Monday despite North Korea increasing rhetoric over a missile test and following Friday's much weaker than expected Non-Farm Payrolls report. It is widely expected that North Korea will test a missile, one that had been reported as being moved to launch centers last week, in a show of strength.
Top News
In other news around the markets:
The Bank of Japan announced it is to purchase 1 trillion yen of 5- to 10-year Japanese government bonds ($10 billion) and 200 billion yen ($2 billion) of bonds with maturity greater than 10-years this week. Overall, the BoJ's announced purchases are nearly on par with the size of the Fed's rate, however for an economy nearly a third of the size. German Chancellor Angela Merkel and Russian Prime Minister Vladimir Putin spoke together on the Cyprus bailout, reiterating the fact that Cyprus' bailout/bail-in is not a template for future crises. The Bank of Japan also formally received the authorization to purchase ETF's and REIT's as part of its increased easing efforts. S&P 500 futures rose 3.6 points to 1,549.60. The EUR/USD was higher at 1.3005. Spanish 10-year government bond yields fell to 4.7 percent from 4.73 percent. Also notably, the 2-year bond yield fell below two percent for the first time since October 2010. Italian 10-year government bond yields fell to 4.3 percent from 4.38 percent. Gold rose 0.06 percent to $1,578.30.
Asian Markets
Asian shares were mixed overnight as shares popped on increased BoJ stimulus despite weakness in other markets. The Japanese Nikkei Index rose 2.8 percent as the Shanghai Composite Index fell 0.62 percent and the Hang Seng Index declined 0.04 percent. Also, the Korean Kospi dropped 0.44 percent and Australian shares added 0.29 percent.
European Markets
European shares were higher overnight despite fears over Portugal's finances as the euro gained. The Spanish Ibex Index rose 0.34 percent and the Italian FTSE MIB Index gained 0.51 percent. Meanwhile, the German DAX rose 0.34 percent and the French CAC added 0.68 percent while U.K. shares gained 0.33 percent.
Commodities
Commodities were higher overnight following weakness Friday on the weaker than expected economic data. WTI Crude futures rose 0.76 percent to $93.43 per barrel and Brent Crude futures rose 0.85 percent to $105.11 per barrel. Copper futures rose 0.78 percent pre-market to $337.05 per pound after briefly touching a 2013 low last week on supply fears. Gold was higher and silver futures were flat at $27.24 per ounce.
Currencies
Currency markets were in flux as the yen continued its move lower against all major pairs, dropping more than 1 percent against most major partners. The EUR/USD was higher at 1.3005 and the dollar gained against the yen to 98.60, or 1.06 percent. Overall, the Dollar Index rose 0.17 percent on strength against the yen, the Canadian dollar, and the Swiss franc. Notably, the yen also lost 1.17 percent against the euro and 1.09 percent against the Australian dollar.
Pre-Market Movers
Stocks moving in the pre-market included:
EMC Corp. (NYSE: EMC ) shares fell 1.47 percent on fears that government spending reductions will continue to hurt the company. Carnival Corporation (NYSE: CCL ) shares fell 1.04 percent pre-market after the ship that broke down in the Gulf of Mexico broke away from the dock during repairs with workers still on board.
Earnings
Notable companies expected to report earnings Monday include:
A. Shulman Inc. (NASDAQ: SHLM ) is expected to report second quarter EPS of $0.40 vs. $0.38 a year ago. Market bell-wheather Alcoa (NYSE: AA ) is expected to report first quarter EPS of $0.10 vs. $0.10 a year ago. Pep Boys (NYSE: PBY ) is expected to report fourth quarter EPS of $0.05 vs. a loss of $0.06 a year ago.
Economics
On the economics calendar Monday, the TD Ameritrade Investor Movement Index is expected to be released and the Treasury is set to auction 4-week, 3-, and 6-month bills. Also, Fed Chairman Ben Bernanke is expected to speak at 7:15 pm. Overnight, Chinese inflation data and British industrial production could move markets.
Good luck and good trading.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Market bell-wheather Alcoa (NYSE: AA ) is expected to report first quarter EPS of $0.10 vs. $0.10 a year ago. It is widely expected that North Korea will test a missile, one that had been reported as being moved to launch centers last week, in a show of strength. The Bank of Japan also formally received the authorization to purchase ETF's and REIT's as part of its increased easing efforts.
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Market bell-wheather Alcoa (NYSE: AA ) is expected to report first quarter EPS of $0.10 vs. $0.10 a year ago. Futures Creep Higher Despite Korean Tensions, Weak Payrolls U.S. equity futures crept higher in early pre-market trade Monday despite North Korea increasing rhetoric over a missile test and following Friday's much weaker than expected Non-Farm Payrolls report. Top News In other news around the markets: The Bank of Japan announced it is to purchase 1 trillion yen of 5- to 10-year Japanese government bonds ($10 billion) and 200 billion yen ($2 billion) of bonds with maturity greater than 10-years this week.
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Market bell-wheather Alcoa (NYSE: AA ) is expected to report first quarter EPS of $0.10 vs. $0.10 a year ago. The Japanese Nikkei Index rose 2.8 percent as the Shanghai Composite Index fell 0.62 percent and the Hang Seng Index declined 0.04 percent. Meanwhile, the German DAX rose 0.34 percent and the French CAC added 0.68 percent while U.K. shares gained 0.33 percent.
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Market bell-wheather Alcoa (NYSE: AA ) is expected to report first quarter EPS of $0.10 vs. $0.10 a year ago. Futures Creep Higher Despite Korean Tensions, Weak Payrolls U.S. equity futures crept higher in early pre-market trade Monday despite North Korea increasing rhetoric over a missile test and following Friday's much weaker than expected Non-Farm Payrolls report. Gold rose 0.06 percent to $1,578.30.
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1408.0
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2013-04-08 00:00:00 UTC
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After-Hours Earnings Report for April 8, 2013 : AA, SHLM, MG, ANGO
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https://www.nasdaq.com/articles/after-hours-earnings-report-april-8-2013-aa-shlm-mg-ango-2013-04-08
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The following companies are expected to report earnings after hours on 04/08/2013. Visit our Earnings Calendar for a full list of expected earnings releases.
Alcoa Inc. ( AA ) is reporting for the quarter ending March 31, 2013. The mining company's consensus earnings per share forecast from the 15 analysts that follow the stock is $0.10. This value represents a no change for the same quarter last year. In the past year AA has met analyst expectations twice and beat the expectations the other quarter. Zacks Investment Research reports that the 2013 Price to Earnings ratio for AA is 13.97 vs. an industry ratio of -4.70, implying that they will have a higher earnings growth than their competitors in the same industry.
A. Schulman, Inc. ( SHLM ) is reporting for the quarter ending February 28, 2013. The plastics company's consensus earnings per share forecast from the 4 analysts that follow the stock is $0.40. This value represents a 5.26% increase compared to the same quarter last year. SHLM missed the consensus earnings per share in the 1st calendar quarter of 2012 by -13.64%. Zacks Investment Research reports that the 2013 Price to Earnings ratio for SHLM is 13.80 vs. an industry ratio of 18.30.
Mistras Group Inc ( MG ) is reporting for the quarter ending February 28, 2013. The electrical instrument company's consensus earnings per share forecast from the 5 analysts that follow the stock is $0.17. This value represents a 30.77% increase compared to the same quarter last year. MG missed the consensus earnings per share in the 2nd calendar quarter of 2012 by -16.67%. Zacks Investment Research reports that the 2013 Price to Earnings ratio for MG is 24.86 vs. an industry ratio of 15.50, implying that they will have a higher earnings growth than their competitors in the same industry.
AngioDynamics, Inc. ( ANGO ) is reporting for the quarter ending February 28, 2013. The medical instruments company's consensus earnings per share forecast from the 1 analyst that follows the stock is $0.05. This value represents a 16.67% decrease compared to the same quarter last year. ANGO missed the consensus earnings per share in the 1st calendar quarter of 2012 by -14.29%. Zacks Investment Research reports that the 2013 Price to Earnings ratio for ANGO is 31.00 vs. an industry ratio of 109.50.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alcoa Inc. ( AA ) is reporting for the quarter ending March 31, 2013. In the past year AA has met analyst expectations twice and beat the expectations the other quarter. Zacks Investment Research reports that the 2013 Price to Earnings ratio for AA is 13.97 vs. an industry ratio of -4.70, implying that they will have a higher earnings growth than their competitors in the same industry.
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Zacks Investment Research reports that the 2013 Price to Earnings ratio for AA is 13.97 vs. an industry ratio of -4.70, implying that they will have a higher earnings growth than their competitors in the same industry. Alcoa Inc. ( AA ) is reporting for the quarter ending March 31, 2013. In the past year AA has met analyst expectations twice and beat the expectations the other quarter.
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Zacks Investment Research reports that the 2013 Price to Earnings ratio for AA is 13.97 vs. an industry ratio of -4.70, implying that they will have a higher earnings growth than their competitors in the same industry. Alcoa Inc. ( AA ) is reporting for the quarter ending March 31, 2013. In the past year AA has met analyst expectations twice and beat the expectations the other quarter.
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Alcoa Inc. ( AA ) is reporting for the quarter ending March 31, 2013. In the past year AA has met analyst expectations twice and beat the expectations the other quarter. Zacks Investment Research reports that the 2013 Price to Earnings ratio for AA is 13.97 vs. an industry ratio of -4.70, implying that they will have a higher earnings growth than their competitors in the same industry.
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1409.0
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2013-04-08 00:00:00 UTC
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Stock Market News for April 8, 2013 - Market News
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https://www.nasdaq.com/articles/stock-market-news-for-april-8-2013-market-news-2013-04-08
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nan
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A disappointing report on the jobs market dampened investor confidence, dragging the major indices into negative territory. The S&P 500 logged its worst weekly decline of the year, following a series of weaker-than-expected numbers from the jobs market. The government jobs report showed that U.S companies are hiring at the slowest pace in nine months. Back-to-back dismal jobs reports have sparked concerns about the health of the economy. However, the energy and utilities sectors still managed a green finish on the S&P 500. Technology stocks were the biggest losers.
The Dow Jones Industrial Average (DJI) lost 0.3% to close the day at 14,565.25. The S&P 500 declined 0.4% to finish Friday's trading session at 1,553.28. The tech-laden Nasdaq Composite Index fell 0.7% to end at 3,203.86. The fear-gauge CBOE Volatility Index (VIX) inched up 0.2% to settle at 13.92. Consolidated volumes on the New York Stock Exchange, American Stock Exchange and Nasdaq were roughly 6.4 billion shares, lower than 2012's daily average of 6.45 billion shares. Declining stocks outnumbered the advancers. For the 45% that advanced, 52% declined.
Benchmarks began Friday's trading session in a bearish mood and the Dow Jones dropped as much as 171 points in the early part of the trading session. But stocks slowly trimmed losses in the later part of the trading session. A series of disappointing report on the jobs front had dragged benchmarks lower in the previous week. The S&P 500 declined 1%, the Dow Jones dropped 0.1% and the Nasdaq lost 2% over the week. Investors are also concerned about the earnings season which will get underway this week.
According to the U.S. Bureau of Labor Statistics, non-farm payroll employment increased 88,000 in the month of March. This was well below the consensus estimate of 198,000. In contrast, U.S. companies had added 268,000 jobs in February. Employment edged up in professional and business services and in health care but declined in retail trade. Professional and business services added 51,000 jobs, health care accounted for 23,000 more jobs whereas employment in construction edged up 23,000. The report revealed employment increased at its slowest pace in nine months. However, unemployment increased to 7.6% from February's figure of 7.7%. This was primarily a result of people withdrawing from the jobs market.
The earnings season will get underway from this week. Alcoa Inc (NYSE: AA ) will be the first Dow company to kick off the earning season. Alcoa is scheduled to report its first-quarter financial report after the close on Monday. According to S&P Capital IQ, analysts believe that profits of S&P 500 companies will increase by 0.6% in the first-quarter on a year-over-year basis. Meanwhile, consumer credit increased in February. Revolving credit increased 0.75% annually whereas non-revolving surged 11%.
The utilities sector was the biggest gainer among the S&P 500 industry groups and the Utilities SPDR (XLU) gained 0.4%. Stocks such as Duke Energy Corp (NYSE: DUK ), Dominion Resources, Inc. (NYSE: D ), NextEra Energy, Inc. (NYSE: NEE ), Exelon Corporation (NYSE: EXC ) and El Paso Electric Company (NYSE: EE ) rose 0.4%, 0.2%, 0.4%, 1.2% and 0.8%, respectively.
The technology sector had a bad day and the Technology SPDR (XLK) lost 0.8%. Stocks such as Apple Inc. (NASDAQ: AAPL ), Hewlett-Packard Company (NYSE: HPQ ), Intel Corporation (NASDAQ: INTC ), Google Inc (NASDAQ: GOOG ) and Yahoo! Inc. (NASDAQ: YHOO ) slipped 1.1%, 1.5%, 0.9%, 1.5% and 0.9%, respectively.
ALCOA INC (AA): Free Stock Analysis Report
APPLE INC (AAPL): Free Stock Analysis Report
DOMINION RES VA (D): Free Stock Analysis Report
DUKE ENERGY CP (DUK): Free Stock Analysis Report
EL PASO ELEC CO (EE): Free Stock Analysis Report
EXELON CORP (EXC): Free Stock Analysis Report
GOOGLE INC-CL A (GOOG): Free Stock Analysis Report
HEWLETT PACKARD (HPQ): Free Stock Analysis Report
INTEL CORP (INTC): Free Stock Analysis Report
NEXTERA ENERGY (NEE): Free Stock Analysis Report
YAHOO! INC (YHOO): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alcoa Inc (NYSE: AA ) will be the first Dow company to kick off the earning season. Stocks such as Apple Inc. (NASDAQ: AAPL ), Hewlett-Packard Company (NYSE: HPQ ), Intel Corporation (NASDAQ: INTC ), Google Inc (NASDAQ: GOOG ) and Yahoo! ALCOA INC (AA): Free Stock Analysis Report APPLE INC (AAPL): Free Stock Analysis Report DOMINION RES VA (D): Free Stock Analysis Report DUKE ENERGY CP (DUK): Free Stock Analysis Report EL PASO ELEC CO (EE): Free Stock Analysis Report EXELON CORP (EXC): Free Stock Analysis Report GOOGLE INC-CL A (GOOG): Free Stock Analysis Report HEWLETT PACKARD (HPQ): Free Stock Analysis Report INTEL CORP (INTC): Free Stock Analysis Report NEXTERA ENERGY (NEE): Free Stock Analysis Report YAHOO!
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Stocks such as Apple Inc. (NASDAQ: AAPL ), Hewlett-Packard Company (NYSE: HPQ ), Intel Corporation (NASDAQ: INTC ), Google Inc (NASDAQ: GOOG ) and Yahoo! ALCOA INC (AA): Free Stock Analysis Report APPLE INC (AAPL): Free Stock Analysis Report DOMINION RES VA (D): Free Stock Analysis Report DUKE ENERGY CP (DUK): Free Stock Analysis Report EL PASO ELEC CO (EE): Free Stock Analysis Report EXELON CORP (EXC): Free Stock Analysis Report GOOGLE INC-CL A (GOOG): Free Stock Analysis Report HEWLETT PACKARD (HPQ): Free Stock Analysis Report INTEL CORP (INTC): Free Stock Analysis Report NEXTERA ENERGY (NEE): Free Stock Analysis Report YAHOO! Alcoa Inc (NYSE: AA ) will be the first Dow company to kick off the earning season.
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Stocks such as Apple Inc. (NASDAQ: AAPL ), Hewlett-Packard Company (NYSE: HPQ ), Intel Corporation (NASDAQ: INTC ), Google Inc (NASDAQ: GOOG ) and Yahoo! ALCOA INC (AA): Free Stock Analysis Report APPLE INC (AAPL): Free Stock Analysis Report DOMINION RES VA (D): Free Stock Analysis Report DUKE ENERGY CP (DUK): Free Stock Analysis Report EL PASO ELEC CO (EE): Free Stock Analysis Report EXELON CORP (EXC): Free Stock Analysis Report GOOGLE INC-CL A (GOOG): Free Stock Analysis Report HEWLETT PACKARD (HPQ): Free Stock Analysis Report INTEL CORP (INTC): Free Stock Analysis Report NEXTERA ENERGY (NEE): Free Stock Analysis Report YAHOO! Alcoa Inc (NYSE: AA ) will be the first Dow company to kick off the earning season.
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Alcoa Inc (NYSE: AA ) will be the first Dow company to kick off the earning season. Stocks such as Apple Inc. (NASDAQ: AAPL ), Hewlett-Packard Company (NYSE: HPQ ), Intel Corporation (NASDAQ: INTC ), Google Inc (NASDAQ: GOOG ) and Yahoo! ALCOA INC (AA): Free Stock Analysis Report APPLE INC (AAPL): Free Stock Analysis Report DOMINION RES VA (D): Free Stock Analysis Report DUKE ENERGY CP (DUK): Free Stock Analysis Report EL PASO ELEC CO (EE): Free Stock Analysis Report EXELON CORP (EXC): Free Stock Analysis Report GOOGLE INC-CL A (GOOG): Free Stock Analysis Report HEWLETT PACKARD (HPQ): Free Stock Analysis Report INTEL CORP (INTC): Free Stock Analysis Report NEXTERA ENERGY (NEE): Free Stock Analysis Report YAHOO!
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1410.0
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2013-04-08 00:00:00 UTC
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EPA Issues ROD to Alcoa - Analyst Blog
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https://www.nasdaq.com/articles/epa-issues-rod-to-alcoa-analyst-blog-2013-04-08
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Aluminum giant Alcoa Inc. ( AA ) announced that the U.S. Environmental Protection Agency (USEPA) has issued a Record of Decision (ROD) relating to the remediation of the Grasse River. This is in sync with the Proposed Remedial Action Plan issued in Oct 2012.
Alcoa, USEPA, the NY Department of Environmental Conservation (DEC) and other parties have been looking for various remedial measures to address the problem of high levels of polychlorinated biphenyls (PCBs) in fish in the lower Grasse River for more than 15 years. With the receipt of the ROD, Alcoa will have to dredge contaminated sediments in a 7.2 mile stretch of river.
Alcoa has already accrued around $243 million, which is expected to be incurred for the remediation. Alcoa believes that the remedy will be safe for both human health and also the environment.
Alcoa is now ready to move into the next phase of modernizing its Massena, N.Y. operations. The next step of modernization will include on site work and support projects for the construction of a new pot line at the location's Massena East plant. By upgrading the operations, Alcoa will be able to cut down its costs and move down the aluminum cost curve. Alcoa plans to invest $52 million toward modernization including $10 million for economic development.
Alcoa is the among the world leader with respect to production and management of primary aluminum, fabricated aluminum, and alumina as well as the world's largest miner of bauxite and refiner of alumina.
Last month, Alcoa was recognized by the Fortune magazine as the "most admired" metals company in the world for the second time in a row. The most admired list of Fortune is based on the surveys conducted by executives, directors and analysts who rate companies in their own industry. Out of the nine parameters that are required for the recognition, Alcoa topped in seven of them.
Alcoa currently retains a short-term Zacks Rank #3 (Hold).
Other companies in the mining industry with favorable Zacks Rank are Atlatsa Resources Corporation ( ATL ), Sandstorm Gold Ltd. ( SAND ) and Anglo American Platinum Ltd. ( AGPPY ). All of them hold a Zacks Rank #2 (Buy).
ALCOA INC (AA): Free Stock Analysis Report
ANGLO AMER PLAT (AGPPY): Get Free Report
ATLATSA RESRCS (ATL): Free Stock Analysis Report
SANDSTORM GOLD (SAND): Get Free Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Aluminum giant Alcoa Inc. ( AA ) announced that the U.S. Environmental Protection Agency (USEPA) has issued a Record of Decision (ROD) relating to the remediation of the Grasse River. ALCOA INC (AA): Free Stock Analysis Report ANGLO AMER PLAT (AGPPY): Get Free Report ATLATSA RESRCS (ATL): Free Stock Analysis Report SANDSTORM GOLD (SAND): Get Free Report To read this article on Zacks.com click here. Alcoa, USEPA, the NY Department of Environmental Conservation (DEC) and other parties have been looking for various remedial measures to address the problem of high levels of polychlorinated biphenyls (PCBs) in fish in the lower Grasse River for more than 15 years.
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ALCOA INC (AA): Free Stock Analysis Report ANGLO AMER PLAT (AGPPY): Get Free Report ATLATSA RESRCS (ATL): Free Stock Analysis Report SANDSTORM GOLD (SAND): Get Free Report To read this article on Zacks.com click here. Aluminum giant Alcoa Inc. ( AA ) announced that the U.S. Environmental Protection Agency (USEPA) has issued a Record of Decision (ROD) relating to the remediation of the Grasse River. Alcoa plans to invest $52 million toward modernization including $10 million for economic development.
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Aluminum giant Alcoa Inc. ( AA ) announced that the U.S. Environmental Protection Agency (USEPA) has issued a Record of Decision (ROD) relating to the remediation of the Grasse River. ALCOA INC (AA): Free Stock Analysis Report ANGLO AMER PLAT (AGPPY): Get Free Report ATLATSA RESRCS (ATL): Free Stock Analysis Report SANDSTORM GOLD (SAND): Get Free Report To read this article on Zacks.com click here. Alcoa is the among the world leader with respect to production and management of primary aluminum, fabricated aluminum, and alumina as well as the world's largest miner of bauxite and refiner of alumina.
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Aluminum giant Alcoa Inc. ( AA ) announced that the U.S. Environmental Protection Agency (USEPA) has issued a Record of Decision (ROD) relating to the remediation of the Grasse River. ALCOA INC (AA): Free Stock Analysis Report ANGLO AMER PLAT (AGPPY): Get Free Report ATLATSA RESRCS (ATL): Free Stock Analysis Report SANDSTORM GOLD (SAND): Get Free Report To read this article on Zacks.com click here. Alcoa plans to invest $52 million toward modernization including $10 million for economic development.
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1411.0
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2013-04-07 00:00:00 UTC
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Weekly 3-Year Low Highlights: AA, NJ, KGC, YZC
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https://www.nasdaq.com/articles/weekly-3-year-low-highlights-aa-nj-kgc-yzc-2013-04-07
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According to the GuruFocus list of 3-year lows : Alcoa Inc., Nidec Corporation, Kinross Gold Corporation, and Yanzhou Coal Mining Company Limited have all reached their 3-year lows.
Alcoa Inc ( AA ) Reached 3-Year Low of $8.24
The prices of Alcoa Inc. ( AA ) shares have declined close to the 3-year low of $8.24, which is 56.8% off the 3-year high of $18.47.
Alcoa Inc. is owned by nine Gurus we are tracking. Among them, six have added to their positions during the past quarter and four have reduced their positions. Alcoa Inc. is a Pennsylvania corporation and was formed in 1888. Alcoa Inc. has a market cap of $8.81 billion; its shares were traded at around $8.24 with a P/E ratio of 45.8716 and a P/S ratio of 0.3741. The dividend yield of Alcoa Inc. stocks is 1.46%.
Alcoa Inc. saw fourth quarter 2012 earnings of $242 million ($0.21 per share) and sales of $5.9 billion compared to a loss of $191 million ($0.18 per share) and sales of $6 billion in the fourth quarter of 2011.
One Guru Initiated Position:Arnold Van Den Berg bought 1,492,980 shares in the quarter that ended on Dec. 31, 2012, which is 1.43% of the $1.02 billion portfolio of Century Management.
One Guru Increased Positions:Joel Greenblatt owns 205,459 shares as of Dec. 31, 2012, an increase of 74.41% from the previous quarter. This position accounts for 0.1% of the $1.73 billion portfolio of Gotham Capital.
Two Gurus Sold Out AA:John Burbank sold out his holdings in the quarter that ended on Dec. 31, 2012, as did Ray Dalio.
Nidec Corporation ( NJ ) Reached 3-Year Low of $13.95
The price of Nidec Corporation ( NJ ) shares has declined close to the 3-year low of $13.95, which is 51.0% off the 3-year high of $27.36.
One Guru has added to his position during the past quarter. Nidec Corp. is a joint stock corporation that was incorporated and registered under the Japanese Commercial Code (which was replaced by the company law in May 2006) of Japan on July 23, 1973, under the name of Nihon Densan Kabushiki Kaisha. Nidec Corporation has a market cap of $8.1 billion; its shares were traded at around $13.95 with a P/E ratio of 18.2482 and a P/S ratio of 1.1443. The dividend yield of Nidec Corporation stocks is 2%. Nidec Corporation had an annual average earnings growth of 22.8% over the past 10 years.
Nidec Corporation has released its third quarter 2012 results, quarter ended Dec. 31, 2012. Sales in this quarter were up 7.8% year-over-year, and operating income decreased 81.4%. Diluted net income per share attributable to stockholders was 11.63 yen, compared to 62.3 yen in the same quarter of last year.
Kinross Gold Corporation ( KGC ) Reached 3-Year Low of $7.07
The price of Kinross Gold Corporation ( KGC ) shares has declined close to the 3-year low of $7.07, which is 65.1% off the 3-year high of $19.90.
Kinross Gold Corporation is owned by 10 Gurus we are tracking. Among them, seven have added to their positions during the past quarter, and two have reduced their positions. Kinross Gold Corporation was initially created in May 1993 by the amalgamation of CMP Resources Ltd. Kinross Gold Corporation has a market cap of $8.07 billion; its shares were traded at around $7.07 with a P/E ratio of 9.9 and a P/S ratio of 1.8681. The dividend yield of Kinross Gold Corporation stock is 2.26%.
Kinross Gold Corporation reported fourth quarter 2012 revenue of $1.18 billion compared to $919 million in the fourth quarter of 2011. Adjusted net income was $276.5 million ($0.24 per share), compared to $187.2 million ($0.16) per share last year. Net loss was $2.98 billion ($2.62 per share), compared to a net loss of $2.79 billion ($2.45 per share) prior year quarter. Fourth quarter loss included a non-cash impairment charge of $3.2 billion. Adjusted operating cash flow was $501.4 million compared to $353.4 million prior year quarter.
Two Gurus Initiated Positions: Ray Dalio bought 206,700 shares in the quarter that ended on Dec. 31, 2012, which is 0.02% of the $9.82 billion portfolio of Bridgewater Associates. NWQ Managers bought 46,808 shares in the quarter that ended on Dec. 31, 2012, which is 0.0037% of the $12.15 billion portfolio of NWQ Investment Management Co.
Three Gurus Increased Positions: John Burbank owns 14,121,122 shares as of Dec. 31, 2012, an increase of 50.53% from the previous quarter. This position accounts for 5.3% of the $2.59 billion portfolio of Passport Capital. Third Avenue Management owns 5,523,264 shares as of Dec. 31, 2012, an increase of 11.84% from the previous quarter. This position accounts for 1.2% of the $4.63 billion portfolio of Third Avenue Management. David Dreman owns 773,511 shares as of Dec.31, 2012, an increase of 11.49% from the previous quarter. This position accounts for 0.22% of the $3.49 billion portfolio of Dreman Value Management.
One Guru Sold Out KGC: George Soros sold out his holdings in the quarter that ended on Dec. 31, 2012.
Yanzhou Coal Mining Company Limited ( YZC ) Reached 3-year Low of $12.46
The price of Yanzhou Coal Mining Company Limited ( YZC ) shares has declined close to the 3-year low of $12.46, which is 70.6% off the 3-year high of $41.89.
Yanzhou Coal Mining Company Limited is owned by two Gurus we are tracking. Among them, one has added to his position during the past quarter. Yanzhou Coal Mining Company Limited was established on Sept. 25, 1997. Yanzhou Coal Mining Company Limited has a market cap of $6.13 billion; its shares were traded at around $12.46 with a P/E ratio of 4.89 and a P/S ratio of 0.7938. The dividend yield of Yanzhou Coal Mining Company Limited stocks is 6.52%. Yanzhou Coal Mining Company Limited had an annual average earnings growth of 21.6% over the past 10 years
Go here for the complete GuruFocus list of 3-year lows.About GuruFocus: GuruFocus.com tracks the stocks picks and portfolio holdings of the world's best investors. This value investing site offers stock screeners and valuation tools. And publishes daily articles tracking the latest moves of the world's best investors. GuruFocus also provides promising stock ideas in 3 monthly newsletters sent to Premium Members .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alcoa Inc ( AA ) Reached 3-Year Low of $8.24 The prices of Alcoa Inc. ( AA ) shares have declined close to the 3-year low of $8.24, which is 56.8% off the 3-year high of $18.47. Two Gurus Sold Out AA:John Burbank sold out his holdings in the quarter that ended on Dec. 31, 2012, as did Ray Dalio. One Guru Initiated Position:Arnold Van Den Berg bought 1,492,980 shares in the quarter that ended on Dec. 31, 2012, which is 1.43% of the $1.02 billion portfolio of Century Management.
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Alcoa Inc ( AA ) Reached 3-Year Low of $8.24 The prices of Alcoa Inc. ( AA ) shares have declined close to the 3-year low of $8.24, which is 56.8% off the 3-year high of $18.47. Two Gurus Sold Out AA:John Burbank sold out his holdings in the quarter that ended on Dec. 31, 2012, as did Ray Dalio. According to the GuruFocus list of 3-year lows : Alcoa Inc., Nidec Corporation, Kinross Gold Corporation, and Yanzhou Coal Mining Company Limited have all reached their 3-year lows.
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Alcoa Inc ( AA ) Reached 3-Year Low of $8.24 The prices of Alcoa Inc. ( AA ) shares have declined close to the 3-year low of $8.24, which is 56.8% off the 3-year high of $18.47. Two Gurus Sold Out AA:John Burbank sold out his holdings in the quarter that ended on Dec. 31, 2012, as did Ray Dalio. According to the GuruFocus list of 3-year lows : Alcoa Inc., Nidec Corporation, Kinross Gold Corporation, and Yanzhou Coal Mining Company Limited have all reached their 3-year lows.
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Alcoa Inc ( AA ) Reached 3-Year Low of $8.24 The prices of Alcoa Inc. ( AA ) shares have declined close to the 3-year low of $8.24, which is 56.8% off the 3-year high of $18.47. Two Gurus Sold Out AA:John Burbank sold out his holdings in the quarter that ended on Dec. 31, 2012, as did Ray Dalio. According to the GuruFocus list of 3-year lows : Alcoa Inc., Nidec Corporation, Kinross Gold Corporation, and Yanzhou Coal Mining Company Limited have all reached their 3-year lows.
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1412.0
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2013-04-05 00:00:00 UTC
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Jobs Number Disappoints, Stocks End the Week in the Red
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https://www.nasdaq.com/articles/jobs-number-disappoints-stocks-end-week-red-2013-04-05
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"While there has been continuing news out of North Korea, what really hit the markets today was the worse-than-expected nonfarm payrolls number for March," explained Schaeffer's Senior Equity Analyst Joe Bell. "This poor number sent most sectors deep into the red for most of the day, as technology stocks especially lagged." Although the Dow Jones Industrial Average (DJI) recovered significantly from its intraday low, it -- and other major market indices -- were lower for the week, while the CBOE Market Volatility Index (VIX) muscled higher.
Continue reading for more on today's market, including :
Senior Trading Analyst Bryan Sapp explains why "bulls are in control of the market" despite this week's decline.
Alcoa Inc. ( AA ) kicks off earnings season next week, and speculators are fearing the worst.
Our Option Idea of the Week demonstrates how to capitalize on Monster Beverage's ( MNST ) continued backslide.
plus...
Markets end the week in the red, jobs growth slows to a crawl, and Oracle Corporation ( ORCL ) attracted bearish speculators.
Though the Dow Jones Industrial Average (DJI) closed lower on the day and the week, bulls took heart in the blue-chip index's intraday recovery. After being down more than 170 points at its intraday low, the Dow closed off 40.9 points, or 0.3%, at 14,565.25. A dozen of the Dow's 30 components closed higher on the day, with Boeing ( BA ) leading the pack with a gain of 1.4%. Pacing the 24 decliners was American Express ( AXP ), which swallowed a 2.2% loss. For the week, the Dow shed less than 0.1%.
Also enjoying a similar midday reversal was the S&P 500 Index (SPX), which closed down just 6.7 points, or 0.4%, at 1,553.28. Tech stocks brought up the rear, as the Nasdaq Composite (COMP) pulled back 21.1 points, or 0.7%, at 3,203.86. For the week, the SPX dropped 1% while the COMP gave back 1.9%.
The CBOE Market Volatility Index (VIX) moved steadily lower throughout the trading session, as uncertainty was lifted from the market following the nonfarm payrolls report. After trading as high as 15.65, the VIX settled with a gain of less than 0.1 point, up 0.2% at 13.92. For the week, the VIX added 9.6%.
A Trader's Take :
"Despite the unexpected jobs news this morning, the market actually showed quite a bit of resilience and finished well off its lows," Bell noted. "In addition, we saw leadership from small-caps, which was encouraging."
3 Things to Know About Today's Market :
Nonfarm payrolls grew at their slowest pace since last summer, as just 88,000 jobs were added in March, falling short of expectations. The unemployment rate dropped to 7.6%, primarily because of those exiting the labor force entirely. (Reuters)
Boeing ( BA ) was under the spotlight, as it scheduled another test flight of its grounded Dreamliner 787 Friday afternoon. The flight, which will yield data for the Federal Aviation Administration, was scheduled to last roughly two hours. (CNBC)
Consumer credit expanded by $18.1 billion in February to a seasonally adjusted $2.8 trillion, according to the Federal Reserve. Nonrevolving credit (such as student and auto loans) surged by $17.6 billion during the month, accounting for the lion's share of the shift. (The Wall Street Journal)
5 Stocks We Were Watching Today :
Apple Inc. (AAPL) put buyers expect modest downside over the next few days.
Oracle Corporation ( ORCL ) saw a rare inflow of long puts.
Nokia Corporation (NOK) faced its second downgrade in as many days.
EMC Corporation (EMC) bears see a short-term break below the $20 mark.
Delta Air Lines (DAL) traders targeted short-term upside on the heels of a price-target hike.
For a look at today's options movers and commodities activity, head to page 2.
Commodities :
Crude moved lower today following the disappointing nonfarm payrolls report. May-dated oil gave back 56 cents, or 0.6%, to settle at $92.70 per barrel. For the week, meanwhile, black gold dropped 4.7%.
A lower dollar and safe-haven demand boosted gold, however, as June futures rose $23.50, or 1.5%, to $1,575.90 an ounce. Despite this sharp rise, gold was still off 1.2% for the week.
At the end of every market day, the staff at Schaeffer's Investment Research reviews the trading day in detail, covering major events and key market developments. Don't miss this critical, timely and insightful report. If you enjoyed today's edition of Market Recap, sign up here for free daily delivery straight to your inbox.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alcoa Inc. ( AA ) kicks off earnings season next week, and speculators are fearing the worst. (The Wall Street Journal) 5 Stocks We Were Watching Today : Apple Inc. (AAPL) put buyers expect modest downside over the next few days. "While there has been continuing news out of North Korea, what really hit the markets today was the worse-than-expected nonfarm payrolls number for March," explained Schaeffer's Senior Equity Analyst Joe Bell.
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Alcoa Inc. ( AA ) kicks off earnings season next week, and speculators are fearing the worst. (The Wall Street Journal) 5 Stocks We Were Watching Today : Apple Inc. (AAPL) put buyers expect modest downside over the next few days. "While there has been continuing news out of North Korea, what really hit the markets today was the worse-than-expected nonfarm payrolls number for March," explained Schaeffer's Senior Equity Analyst Joe Bell.
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Alcoa Inc. ( AA ) kicks off earnings season next week, and speculators are fearing the worst. (The Wall Street Journal) 5 Stocks We Were Watching Today : Apple Inc. (AAPL) put buyers expect modest downside over the next few days. Although the Dow Jones Industrial Average (DJI) recovered significantly from its intraday low, it -- and other major market indices -- were lower for the week, while the CBOE Market Volatility Index (VIX) muscled higher.
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Alcoa Inc. ( AA ) kicks off earnings season next week, and speculators are fearing the worst. (The Wall Street Journal) 5 Stocks We Were Watching Today : Apple Inc. (AAPL) put buyers expect modest downside over the next few days. "While there has been continuing news out of North Korea, what really hit the markets today was the worse-than-expected nonfarm payrolls number for March," explained Schaeffer's Senior Equity Analyst Joe Bell.
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1413.0
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2013-04-04 00:00:00 UTC
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Choppy Trading Session Resolves to the Upside
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AA
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https://www.nasdaq.com/articles/choppy-trading-session-resolves-upside-2013-04-04
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"The S&P 500 Index experienced an inside day today," noted Schaeffer's Senior Options Strategist Tony Venosa, CMT, pointing out that the index's total daily trading range (1,552.52 to 1,562.60) was contained within yesterday's intraday range. "Market participants were clearly awaiting tomorrow's employment report for March," he added. Meanwhile, despite rising concerns out of North Korea and words of caution from the European Central Bank, the Dow Jones Industrial Average (DJI) finished higher after a few midday blips into negative territory.
Continue reading for more on today's market, including :
Why our Senior Trading Analyst Bryan Sapp says to "look for an upside move tomorrow."
How options traders bet on these two banking giants ahead of next week's earnings announcements.
Cisco Systems ( CSCO ) caught the attention of long-term bearish speculators.
plus...
Markets finish higher in choppy trading, the Bank of Japan makes a grand gesture, and Sirius XM Radio ( SIRI ) traders expect a sharp drop.
The Dow Jones Industrial Average (DJI) beat the odds to close with a gain of 56 points, or 0.4%, at 14,606.11, following an intraday test of its 10-day moving average. Of the Dow's 30 components, 25 closed in positive territory, led by Hewlett-Packard ( HPQ ), which tacked on 1.8% following a pair of analysts' upgrades this morning. International Business Machines ( IBM ) and Alcoa ( AA ) paced the five decliners, giving back 0.6% each.
The S&P 500 Index (SPX) had a winning day as well, adding 6.3 points, or 0.4%, to 1,559.98, a hair above its own 10-day moving average. Finally, after spending much of the day in negative territory, the Nasdaq Composite (COMP) managed to settle higher, up 6.4 points, or 0.2%, closing at 3,224.98.
It was an odd day for the CBOE Market Volatility Index (VIX), which spiked to an intraday high of 14.79 -- up 4.1% from Wednesday's close -- before closing off 0.3 point, down 2.3% at 13.89.
A Trader's Take :
"The decision by the Bank of Japan to launch its own massive quantitative easing program helped buoy our markets," Venosa observed. "Also, the basic materials sector -- which has been beaten down the most this year -- helped lead the markets higher today."
3 Things to Know About Today's Market :
Weekly jobless claims were a disappointment, rising by 28,000 to a seasonally adjusted four-month high of 385,000. Economists had expected the reading to decline. (Reuters)
In an aggressive effort to achieve its 2% inflation target within the next two years, the Bank of Japan pledged to double its monetary stimulus to roughly $1.4 trillion by the end of 2014. The central bank plans to buy both long-term debt as well as less traditional securities such as ETFs . (CNNMoney)
Facebook Inc (FB) did not, as many had assumed, announce its own smartphone today, but instead unveiled an interface Android phone users can download free of charge as early as next week. Facebook Home will allow users to "see [their] world through people, not apps," according to Facebook CEO Mark Zuckerberg. (Los Angeles Times)
5 Stocks We Were Watching Today :
Sirius XM Radio ( SIRI ) bears bet on a sharp decline over the longer term.
Citigroup (C) optimists expect a bounce higher by the end of Friday's trading.
Netflix (NFLX) call buyers took a very short-term view .
Applied Materials (AMAT) saw a shift in direction among short-term option traders.
First Solar (FSLR) option pits were crowded with put buyers and put sellers .
For a look at today's options movers and commodities activity, head to page 2.
Commodities :
A four-month high in U.S. jobless claims, together with dreary remarks from European Central Bank (ECB) leader Mario Draghi, combined forces to pressure oil into the red. By the close, May-dated oil futures were off $1.19, or 1.3%, at $93.26 per barrel.
Gold also shifted lower on the day, though the precious metal did bounce back from its intraday low. June gold futures settled with a loss of $1.10, or 0.1%, at $1,552.40 per ounce.
At the end of every market day, the staff at Schaeffer's Investment Research reviews the trading day in detail, covering major events and key market developments. Don't miss this critical, timely and insightful report. If you enjoyed today's edition of Market Recap, sign up here for free daily delivery straight to your inbox.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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International Business Machines ( IBM ) and Alcoa ( AA ) paced the five decliners, giving back 0.6% each. Meanwhile, despite rising concerns out of North Korea and words of caution from the European Central Bank, the Dow Jones Industrial Average (DJI) finished higher after a few midday blips into negative territory. plus... Markets finish higher in choppy trading, the Bank of Japan makes a grand gesture, and Sirius XM Radio ( SIRI ) traders expect a sharp drop.
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International Business Machines ( IBM ) and Alcoa ( AA ) paced the five decliners, giving back 0.6% each. "The S&P 500 Index experienced an inside day today," noted Schaeffer's Senior Options Strategist Tony Venosa, CMT, pointing out that the index's total daily trading range (1,552.52 to 1,562.60) was contained within yesterday's intraday range. Meanwhile, despite rising concerns out of North Korea and words of caution from the European Central Bank, the Dow Jones Industrial Average (DJI) finished higher after a few midday blips into negative territory.
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International Business Machines ( IBM ) and Alcoa ( AA ) paced the five decliners, giving back 0.6% each. "The S&P 500 Index experienced an inside day today," noted Schaeffer's Senior Options Strategist Tony Venosa, CMT, pointing out that the index's total daily trading range (1,552.52 to 1,562.60) was contained within yesterday's intraday range. plus... Markets finish higher in choppy trading, the Bank of Japan makes a grand gesture, and Sirius XM Radio ( SIRI ) traders expect a sharp drop.
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International Business Machines ( IBM ) and Alcoa ( AA ) paced the five decliners, giving back 0.6% each. plus... Markets finish higher in choppy trading, the Bank of Japan makes a grand gesture, and Sirius XM Radio ( SIRI ) traders expect a sharp drop. It was an odd day for the CBOE Market Volatility Index (VIX), which spiked to an intraday high of 14.79 -- up 4.1% from Wednesday's close -- before closing off 0.3 point, down 2.3% at 13.89.
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1414.0
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2013-04-04 00:00:00 UTC
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After Hours Most Active for Apr 4, 2013 : QQQ, BAC, BX, CSCO, MSFT, GE, INTC, FFIV, PGR, AA, SWY, NWSA
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https://www.nasdaq.com/articles/after-hours-most-active-apr-4-2013-qqq-bac-bx-csco-msft-ge-intc-ffiv-pgr-aa-swy-nwsa-2013
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The NASDAQ 100 After Hours Indicator is down -6.09 to 2,788.83. The total After hours volume is currently 34,690,128 shares traded.
The following are the most active stocks for the after hours session :
PowerShares QQQ Trust, Series 1 ( QQQ ) is -0.13 at $68.30, with 5,041,139 shares traded. This represents a 13.76% increase from its 52 Week Low.
Bank of America Corporation ( BAC ) is -0.01 at $11.93, with 2,189,231 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2013. The consensus EPS forecast is $0.24. BAC's current last sale is 91.77% of the target price of $13.
The Blackstone Group L.P. ( BX ) is +0.04 at $19.46, with 2,025,898 shares traded. As reported by Zacks, the current mean recommendation for BX is in the "buy range".
Cisco Systems, Inc. ( CSCO ) is -0.49 at $20.55, with 938,949 shares traded. As reported by Zacks, the current mean recommendation for CSCO is in the "buy range".
Microsoft Corporation ( MSFT ) is unchanged at $28.60, with 846,296 shares traded. As reported by Zacks, the current mean recommendation for MSFT is in the "buy range".
General Electric Company ( GE ) is unchanged at $23.08, with 769,487 shares traded. As reported by Zacks, the current mean recommendation for GE is in the "buy range".
Intel Corporation ( INTC ) is unchanged at $21.14, with 724,990 shares traded. INTC's current last sale is 95.01% of the target price of $22.25.
F5 Networks, Inc. ( FFIV ) is -13.82 at $76.60, with 633,860 shares traded. As reported by Zacks, the current mean recommendation for FFIV is in the "buy range".
Progressive Corporation (The) ( PGR ) is unchanged at $25.32, with 596,886 shares traded. Over the last four weeks they have had 7 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2013. The consensus EPS forecast is $0.43. PGR is scheduled to provide an earnings report on 4/10/2013, for the fiscal quarter ending Mar2013. The consensus earnings per share forecast is 0.43 per share, which represents a 42 percent increase over the EPS one Year Ago
Alcoa Inc. ( AA ) is +0.01 at $8.23, with 588,763 shares traded.AA is scheduled to provide an earnings report on 4/8/2013, for the fiscal quarter ending Mar2013. The consensus earnings per share forecast is 0.11 per share, which represents a 10 percent increase over the EPS one Year Ago
Safeway Inc. ( SWY ) is unchanged at $25.26, with 571,244 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2013. The consensus EPS forecast is $0.35. As reported in the last short interest update the days to cover for SWY is 8.124443; this calculation is based on the average trading volume of the stock.
News Corporation ( NWSA ) is -0.01 at $30.40, with 560,438 shares traded. As reported by Zacks, the current mean recommendation for NWSA is in the "buy range".
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The consensus earnings per share forecast is 0.43 per share, which represents a 42 percent increase over the EPS one Year Ago Alcoa Inc. ( AA ) is +0.01 at $8.23, with 588,763 shares traded.AA is scheduled to provide an earnings report on 4/8/2013, for the fiscal quarter ending Mar2013. Over the last four weeks they have had 7 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2013. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2013.
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The consensus earnings per share forecast is 0.43 per share, which represents a 42 percent increase over the EPS one Year Ago Alcoa Inc. ( AA ) is +0.01 at $8.23, with 588,763 shares traded.AA is scheduled to provide an earnings report on 4/8/2013, for the fiscal quarter ending Mar2013. PGR is scheduled to provide an earnings report on 4/10/2013, for the fiscal quarter ending Mar2013. The consensus earnings per share forecast is 0.11 per share, which represents a 10 percent increase over the EPS one Year Ago Safeway Inc. ( SWY ) is unchanged at $25.26, with 571,244 shares traded.
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The consensus earnings per share forecast is 0.43 per share, which represents a 42 percent increase over the EPS one Year Ago Alcoa Inc. ( AA ) is +0.01 at $8.23, with 588,763 shares traded.AA is scheduled to provide an earnings report on 4/8/2013, for the fiscal quarter ending Mar2013. As reported by Zacks, the current mean recommendation for FFIV is in the "buy range". The consensus earnings per share forecast is 0.11 per share, which represents a 10 percent increase over the EPS one Year Ago Safeway Inc. ( SWY ) is unchanged at $25.26, with 571,244 shares traded.
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The consensus earnings per share forecast is 0.43 per share, which represents a 42 percent increase over the EPS one Year Ago Alcoa Inc. ( AA ) is +0.01 at $8.23, with 588,763 shares traded.AA is scheduled to provide an earnings report on 4/8/2013, for the fiscal quarter ending Mar2013. The NASDAQ 100 After Hours Indicator is down -6.09 to 2,788.83. As reported by Zacks, the current mean recommendation for FFIV is in the "buy range".
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1415.0
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2013-04-01 00:00:00 UTC
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Alcoa to Move Ahead with Massena Modernization - Analyst Blog
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https://www.nasdaq.com/articles/alcoa-to-move-ahead-with-massena-modernization-analyst-blog-2013-04-01
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Aluminum giant Alcoa Inc. ( AA ) announced that it is ready to move into the next phase of modernizing its Massena, N.Y. operations. The project is awaiting the Record of Decision (ROD) regarding the cleaning of the Grasse River as proposed by the Environmental Protection Agency.
Once Alcoa receives the ROD, the next step of modernization will include on site work and support projects in preparation for the construction of a new potline at the location's Massena East plant. By upgrading the operations, Alcoa will be able to cut down its costs and move down the aluminum cost curve. Alcoa plans to invest $52 million toward modernization including $10 million for economic development.
Alcoa has entered into a contract with New York Power Authority (NYPA), under which, NYPA will supply power to the operations in Massena for a term of 30 years. Alcoa also has the option of extending the contract with NYPA for another 10 years subject to certain economic conditions.
Alcoa is the among the world leader with respect to production and management of primary aluminum, fabricated aluminum, and alumina as well as the world's largest miner of bauxite and refiner of alumina.
Last month, Alcoa was recognized by the Fortune magazine as the "most admired" metals company in the world for the second time in a row. The most admired list of Fortune is based on the surveys conducted by executives, directors and analysts who rate companies in their own industry. Out of the nine parameters that are required for the recognition, Alcoa topped in seven of them.
Alcoa currently retains a short-term Zacks Rank #3 (Hold).
Other companies in the mining industry with favorable Zacks Ranks are Atlatsa Resources Corporation ( ATL ), Sandstorm Gold Ltd. ( SAND ) and Paramount Gold and Silver Corp. ( PZG ). All of them hold a Zacks Rank #2 (Buy).
ALCOA INC (AA): Free Stock Analysis Report
ATLATSA RESRCS (ATL): Free Stock Analysis Report
PARAMOUNT GOLD (PZG): Get Free Report
SANDSTORM GOLD (SAND): Get Free Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Aluminum giant Alcoa Inc. ( AA ) announced that it is ready to move into the next phase of modernizing its Massena, N.Y. operations. ALCOA INC (AA): Free Stock Analysis Report ATLATSA RESRCS (ATL): Free Stock Analysis Report PARAMOUNT GOLD (PZG): Get Free Report SANDSTORM GOLD (SAND): Get Free Report To read this article on Zacks.com click here. The project is awaiting the Record of Decision (ROD) regarding the cleaning of the Grasse River as proposed by the Environmental Protection Agency.
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ALCOA INC (AA): Free Stock Analysis Report ATLATSA RESRCS (ATL): Free Stock Analysis Report PARAMOUNT GOLD (PZG): Get Free Report SANDSTORM GOLD (SAND): Get Free Report To read this article on Zacks.com click here. Aluminum giant Alcoa Inc. ( AA ) announced that it is ready to move into the next phase of modernizing its Massena, N.Y. operations. Other companies in the mining industry with favorable Zacks Ranks are Atlatsa Resources Corporation ( ATL ), Sandstorm Gold Ltd. ( SAND ) and Paramount Gold and Silver Corp. ( PZG ).
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ALCOA INC (AA): Free Stock Analysis Report ATLATSA RESRCS (ATL): Free Stock Analysis Report PARAMOUNT GOLD (PZG): Get Free Report SANDSTORM GOLD (SAND): Get Free Report To read this article on Zacks.com click here. Aluminum giant Alcoa Inc. ( AA ) announced that it is ready to move into the next phase of modernizing its Massena, N.Y. operations. Alcoa has entered into a contract with New York Power Authority (NYPA), under which, NYPA will supply power to the operations in Massena for a term of 30 years.
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Aluminum giant Alcoa Inc. ( AA ) announced that it is ready to move into the next phase of modernizing its Massena, N.Y. operations. ALCOA INC (AA): Free Stock Analysis Report ATLATSA RESRCS (ATL): Free Stock Analysis Report PARAMOUNT GOLD (PZG): Get Free Report SANDSTORM GOLD (SAND): Get Free Report To read this article on Zacks.com click here. Once Alcoa receives the ROD, the next step of modernization will include on site work and support projects in preparation for the construction of a new potline at the location's Massena East plant.
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1416.0
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2013-03-22 00:00:00 UTC
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Stock Market News for March 22, 2013 - Market News
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AA
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https://www.nasdaq.com/articles/stock-market-news-for-march-22-2013-market-news-2013-03-22
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Dismal quarterly results from technology major Oracle and investor concerns about the consequences of Cyprus' financial crisis on the heath of the Euro Zone's economy dragged benchmarks lower. Cyprus' financial crisis overshadowed encouraging numbers from the housing sector. Existing home sales increased in the month of February. Meanwhile, initial claims surged slightly but the four-week moving average declined to its lowest level in five years. All ten sectors of the S&P 500 industry groups ended in the red and the materials sector emerged as the biggest loser.
The Dow Jones Industrial Average (DJI) lost 0.6% to close the day at 14,421.49. The S&P 500 fell 0.8% to finish yesterday's trading session at 1,545.80. The tech-laden Nasdaq Composite Index declined 1.0% to end at 3,222.60. The fear-gauge CBOE Volatility Index (VIX) jumped 10.4% to settle at 13.99. Consolidated volumes on the New York Stock Exchange, American Stock Exchange and Nasdaq were roughly 5.9 billion shares, lower than 2012's daily average of 6.45 billion shares. Declining stocks outnumbered the advancers. For the 33% that advanced, 64% declined.
Benchmarks opened lower on Thursday and languished in the red throughout the day. Stocks fell further in the late afternoon after rating agency Standard & Poor's reduced Cyprus' sovereign credit rating to junk. On the other hand the country's international lenders said to qualify for the international bailout Cyprus will have to raise the requisite loan amount till Monday. If Cyprus is unable to raise the billions of euros then the country's financial system will crumble and could withdraw from the euro bloc.
According to the National Association of Realtors existing home sales increased in February. Existing home sales came in at 4.98 million in February from previous month's upwardly revised figure of 4.94 million. This was slightly below the consensus estimate of 5.01 million. According to Lawrence Yun, NAR's chief economist: "Job growth in the improving economy and pent-up demand are causing both home sales and rental leasing to rise. Though home prices are rising much faster than rents, historically low mortgage rates are still making home purchases affordable."
The U.S. Department of Labor said in a report that the number of Americans filing for unemployment benefits increased slightly in the previous week. According to the report, initial claims surged 2,000 from previous week's revised figure of 334,000 to 336,000. This was slightly below the consensus estimate of 338,000. More importantly the four week moving average declined 7,500 to 339,750 from previous prior week's revised figure of 347,250.
Another report was released on the domestic front, which revealed that U.S. economy is recovering. According to the Federal Reserve Bank of Philadelphia manufacturing activity surprisingly rebounded in March. The general economic index jumped to 2 from previous month's figure of -12.5.
Disappointing third quarter results from Oracle Corporation (NASDAQ: ORCL ) also dampened investor sentiment. Oracle shares tanked 9.7% after the company reported its quarterly results. The company's earnings and revenue both fell short of the Street's estimate.
Dismal results from Oracle affected the technology sector yesterday. Stocks such as Microsoft Corporation (NASDAQ: MSFT ), International Business Machines Corp. (NYSE: IBM ), Hewlett-Packard Company (NYSE: HPQ ) and Sony Corporation (NYSE: SNE ) lost 0.7%, 1.3%, 2.6% and 2.3%, respectively.
The materials sector was the biggest loser among the S&P 500 industry groups and the Materials Select Sector SPDR (XLB) lost 1.7%. Stocks such as Alcoa Inc (NYSE: AA ), The Dow Chemical Company (NYSE: DOW ), E I Du Pont De Nemours And Co (NYSE: DD ), Monsanto Company (NYSE: MON ) and Eastman Chemical Company (NYSE: EMN ) fell 1.1%, 2.9%, 1.0%, 2.0% and 3.7%, respectively.
ALCOA INC (AA): Free Stock Analysis Report
DU PONT (EI) DE (DD): Free Stock Analysis Report
DOW CHEMICAL (DOW): Free Stock Analysis Report
EASTMAN CHEM CO (EMN): Free Stock Analysis Report
HEWLETT PACKARD (HPQ): Free Stock Analysis Report
INTL BUS MACH (IBM): Free Stock Analysis Report
MONSANTO CO-NEW (MON): Free Stock Analysis Report
MICROSOFT CORP (MSFT): Free Stock Analysis Report
ORACLE CORP (ORCL): Free Stock Analysis Report
SONY CORP ADR (SNE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stocks such as Alcoa Inc (NYSE: AA ), The Dow Chemical Company (NYSE: DOW ), E I Du Pont De Nemours And Co (NYSE: DD ), Monsanto Company (NYSE: MON ) and Eastman Chemical Company (NYSE: EMN ) fell 1.1%, 2.9%, 1.0%, 2.0% and 3.7%, respectively. ALCOA INC (AA): Free Stock Analysis Report DU PONT (EI) DE (DD): Free Stock Analysis Report DOW CHEMICAL (DOW): Free Stock Analysis Report EASTMAN CHEM CO (EMN): Free Stock Analysis Report HEWLETT PACKARD (HPQ): Free Stock Analysis Report INTL BUS MACH (IBM): Free Stock Analysis Report MONSANTO CO-NEW (MON): Free Stock Analysis Report MICROSOFT CORP (MSFT): Free Stock Analysis Report ORACLE CORP (ORCL): Free Stock Analysis Report SONY CORP ADR (SNE): Free Stock Analysis Report To read this article on Zacks.com click here. Dismal quarterly results from technology major Oracle and investor concerns about the consequences of Cyprus' financial crisis on the heath of the Euro Zone's economy dragged benchmarks lower.
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Stocks such as Alcoa Inc (NYSE: AA ), The Dow Chemical Company (NYSE: DOW ), E I Du Pont De Nemours And Co (NYSE: DD ), Monsanto Company (NYSE: MON ) and Eastman Chemical Company (NYSE: EMN ) fell 1.1%, 2.9%, 1.0%, 2.0% and 3.7%, respectively. ALCOA INC (AA): Free Stock Analysis Report DU PONT (EI) DE (DD): Free Stock Analysis Report DOW CHEMICAL (DOW): Free Stock Analysis Report EASTMAN CHEM CO (EMN): Free Stock Analysis Report HEWLETT PACKARD (HPQ): Free Stock Analysis Report INTL BUS MACH (IBM): Free Stock Analysis Report MONSANTO CO-NEW (MON): Free Stock Analysis Report MICROSOFT CORP (MSFT): Free Stock Analysis Report ORACLE CORP (ORCL): Free Stock Analysis Report SONY CORP ADR (SNE): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks such as Microsoft Corporation (NASDAQ: MSFT ), International Business Machines Corp. (NYSE: IBM ), Hewlett-Packard Company (NYSE: HPQ ) and Sony Corporation (NYSE: SNE ) lost 0.7%, 1.3%, 2.6% and 2.3%, respectively.
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Stocks such as Alcoa Inc (NYSE: AA ), The Dow Chemical Company (NYSE: DOW ), E I Du Pont De Nemours And Co (NYSE: DD ), Monsanto Company (NYSE: MON ) and Eastman Chemical Company (NYSE: EMN ) fell 1.1%, 2.9%, 1.0%, 2.0% and 3.7%, respectively. ALCOA INC (AA): Free Stock Analysis Report DU PONT (EI) DE (DD): Free Stock Analysis Report DOW CHEMICAL (DOW): Free Stock Analysis Report EASTMAN CHEM CO (EMN): Free Stock Analysis Report HEWLETT PACKARD (HPQ): Free Stock Analysis Report INTL BUS MACH (IBM): Free Stock Analysis Report MONSANTO CO-NEW (MON): Free Stock Analysis Report MICROSOFT CORP (MSFT): Free Stock Analysis Report ORACLE CORP (ORCL): Free Stock Analysis Report SONY CORP ADR (SNE): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks such as Microsoft Corporation (NASDAQ: MSFT ), International Business Machines Corp. (NYSE: IBM ), Hewlett-Packard Company (NYSE: HPQ ) and Sony Corporation (NYSE: SNE ) lost 0.7%, 1.3%, 2.6% and 2.3%, respectively.
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Stocks such as Alcoa Inc (NYSE: AA ), The Dow Chemical Company (NYSE: DOW ), E I Du Pont De Nemours And Co (NYSE: DD ), Monsanto Company (NYSE: MON ) and Eastman Chemical Company (NYSE: EMN ) fell 1.1%, 2.9%, 1.0%, 2.0% and 3.7%, respectively. ALCOA INC (AA): Free Stock Analysis Report DU PONT (EI) DE (DD): Free Stock Analysis Report DOW CHEMICAL (DOW): Free Stock Analysis Report EASTMAN CHEM CO (EMN): Free Stock Analysis Report HEWLETT PACKARD (HPQ): Free Stock Analysis Report INTL BUS MACH (IBM): Free Stock Analysis Report MONSANTO CO-NEW (MON): Free Stock Analysis Report MICROSOFT CORP (MSFT): Free Stock Analysis Report ORACLE CORP (ORCL): Free Stock Analysis Report SONY CORP ADR (SNE): Free Stock Analysis Report To read this article on Zacks.com click here. Existing home sales increased in the month of February.
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1417.0
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2013-03-18 00:00:00 UTC
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Benzinga Market Primer, Monday March 18
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https://www.nasdaq.com/articles/benzinga-market-primer-monday-march-18-2013-03-18
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Futures Sharply Lower on Cypriot Bailout, Deposit Raid
U.S. equity futures traded sharply lower in early pre-market trade Monday after EU leaders agreed to a bailout in principle for Cyprus, however choosing to penalize savers in the country for the bailout. The EU is set to place a levy on deposits, effectively taking percentages of deposits in exchange for the bailout.
Top News
In other news around the markets:
Chinese Premier Li, having just assumed office, told markets to expect 7.5 percent growth through 2020, as his predecessor had done. Economists seem reluctant to take officials seriously in forecasting growth since estimates differ from those of the government. Chinese home prices rose 1.1 percent February, or 2.2 percent from a year ago, fueling concerns of a property bubble in China and increasing the likelihood that the PBOC would need to tighten policy. The data marks the seventh monthly increase in the past eight months. Bailout packages for both Ireland and Portugal have had the loan period extended by EU leaders, as they were with Greece, in a sign of good faith as the two countries have taken strong steps in implementing austerity measures. S&P 500 futures fell 13.3 points to 1,540.30. The EUR/USD was lower at 1.2956. Spanish 10-year government bond yields rose rose 11 basis points to 5.03 percent, crossing back above the dreaded 5 percent level. Italian 10-year government bond yields rose 8 basis points to 4.67 percent. Gold rose 0.68 percent to $1,603.40 per ounce.
Asian Markets
Asian shares were weak overnight on both the Cyprus bailout news threatening depositors and also on the negative news out of China. The Japanese Nikkei Index fell 2.71 percent and the Shanghai Composite Index fell 1.68 percent while the Hang Seng Index declined 2.00 percent. Also, the Korean Kospi fell 0.92 percent and Australian shares declined 2.05 percent.
European Markets
European shares traded lower but off of session lows as financials led stocks lower following the bailout of Cyprus. The Spanish Ibex Index fell 2.00 percent and the Italian FTSE MIB Index fell 2.22 percent both led lower by banks. Meanwhile, the German DAX declined 0.96 percent and the French CAC fell 1.13 percent while U.K. shares declined 0.76 percent.
Commodities
Commodities were lower overnight on global growth fears resulting from the negative Chinese home data as well as the confidence shock from the Cyprus bailout. WTI Crude futures fell 0.92 percent to $92.59 per barrel and Brent Crude futures declined 1.1 percent to $108.61 per barrel. Copper futures declined 2.2 percent to $344.30 per pound. Gold was higher and silver futures declined 0.16 percent to $28.82 per ounce.
Currencies
Currency markets were in broad risk-off mode as investors fled to the safe-haven currencies in the dollar and the yen and sold the euro. The EUR/USD was nearly 1 percent lower at 1.2956 and the dollar fell against the yen to 95.00. Overall, the Dollar Index rose 0.4 percent on strength against the euro, the Swiss franc, and the Canadian dollar. The Australian dollar was also sharply lower overnight on global growth fears and the EUR/JPY was a big mover, declining 1.2 percent overnight.
Pre-Market Movers
Stocks moving in the pre-market included:
Citigroup (NYSE: C ) shares fell 2.79 percent pre-market as banks globally declined following the Cyprus bailout. Alcoa (NYSE: AA ) shares fell 2.67 percent pre-market as steel prices declined on Chinese tightening fears. Kimberly Clark (NYSE: KMB ) shares fell 1.68 percent pre-market on fears that global sales could slow in the face of global economic headwinds. Carnival Corp. (NYSE: CCL ) shares declined 3.58 percent pre-market as analysts have been making negative comments about the company relating to new pricing policies.
Earnings
Notable companies expected to report earnings Monday include:
Horizon Pharmaceuticals (NASDAQ: HZNP ) is expected to report a fourth quarter loss of $0.47 per share vs. a loss of $.097 per share a year ago. Kior (NASDAQ: KIOR ) is expected to report a fourth quarter loss of $0.32 per share vs. a loss of $0.15 per share a year ago. Micron Technology (NASDAQ: MU ) is expected to report a second quarter loss of $0.20 per share vs. a loss of $0.29 per share a year ago.
Economics
On the economics calendar Monday, the NAHB Housing Market Index is expected to be released and the Treasury is set to auction 3- and 6-month bills. Overnight, Italian industrial production and the German ZEW Economic Sentiment Index could move markets.
Good luck and good trading.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alcoa (NYSE: AA ) shares fell 2.67 percent pre-market as steel prices declined on Chinese tightening fears. Bailout packages for both Ireland and Portugal have had the loan period extended by EU leaders, as they were with Greece, in a sign of good faith as the two countries have taken strong steps in implementing austerity measures. Carnival Corp. (NYSE: CCL ) shares declined 3.58 percent pre-market as analysts have been making negative comments about the company relating to new pricing policies.
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Alcoa (NYSE: AA ) shares fell 2.67 percent pre-market as steel prices declined on Chinese tightening fears. Futures Sharply Lower on Cypriot Bailout, Deposit Raid U.S. equity futures traded sharply lower in early pre-market trade Monday after EU leaders agreed to a bailout in principle for Cyprus, however choosing to penalize savers in the country for the bailout. Pre-Market Movers Stocks moving in the pre-market included: Citigroup (NYSE: C ) shares fell 2.79 percent pre-market as banks globally declined following the Cyprus bailout.
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Alcoa (NYSE: AA ) shares fell 2.67 percent pre-market as steel prices declined on Chinese tightening fears. The Japanese Nikkei Index fell 2.71 percent and the Shanghai Composite Index fell 1.68 percent while the Hang Seng Index declined 2.00 percent. The Spanish Ibex Index fell 2.00 percent and the Italian FTSE MIB Index fell 2.22 percent both led lower by banks.
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Alcoa (NYSE: AA ) shares fell 2.67 percent pre-market as steel prices declined on Chinese tightening fears. Futures Sharply Lower on Cypriot Bailout, Deposit Raid U.S. equity futures traded sharply lower in early pre-market trade Monday after EU leaders agreed to a bailout in principle for Cyprus, however choosing to penalize savers in the country for the bailout. The Spanish Ibex Index fell 2.00 percent and the Italian FTSE MIB Index fell 2.22 percent both led lower by banks.
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1418.0
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2013-03-12 00:00:00 UTC
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Stock Market News for March 12, 2013 - Market News
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https://www.nasdaq.com/articles/stock-market-news-for-march-12-2013-market-news-2013-03-12
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nan
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Benchmarks scaled a new high on Monday, riding on positive sentiment in the market. The Dow Jones continued rallying towards another record high despite the absence of any major economic reports and developments. The S&P 500 breached its highest intra-day level briefly while the CBOE Volatility Index was at its lowest level in more than six years. Among the top ten S&P 500 industry groups, the financial stocks emerged as the biggest gainer.
The Dow Jones Industrial Average (DJI) gained 0.4% to close the day at 14,447.29. The S&P 500 increased 0.3% to finish yesterday's trading session at 1,556.22. The tech-laden Nasdaq Composite Index gained 0.3% to end at 3,252.87. The fear-gauge CBOE Volatility Index (VIX) dropped 8.2% to settle at 11.56. Consolidated volumes on the New York Stock Exchange, American Stock Exchange and Nasdaq were roughly 5.36 billion shares, well below the daily average of 6.48 billion shares. Advancing stocks outnumbered the decliners. For the 53% that advanced, 43% declined.
The Dow and the S&P 500 finished in the green owing to positive investor sentiment. The Dow and the S&P 500 have increased 10% and 9%, respectively this year. Since breaking a record high last Tuesday, the Dow has increased about 2% following encouraging economic data on employment and initial claims. The Federal Reserve's continued support towards economic stimulus also added fuel to investor sentiment. The S&P 500 is just 10 points short of breaching its all time high. On Monday, the index touched its highest intraday level of 1,556.27 briefly. This figure was achieved on October 15, 2007.
On the international front, industrial output data released by China reflects a poor start this year, the weakest since 2009. Industrial output data came in at 9.9%, below the consensus estimate of 10.3%. Apart from industrial output, growth in lending and retail sales was also weak. In the first two months, production increased 9.9% while retail sales grew 12.3%. Retail sales data came in below market estimates of 15%.
Meanwhile, Italy faced a downgrade in light of poor economic growth and unstable political conditions. Fitch downgraded Italy to a BBB+ rating from A -. Fitch also said Italy's prospects are negative; hence, further downgrades are possible. According to the ratings firm: "The increased political uncertainty and non-conducive backdrop for further structural reform measures constitute a further adverse shock to the real economy amidst the deep recession."
On the earnings front, shares of Dicks Sporting Goods Inc. (NYSE: DKS ) plunged about 11% after it posted revenues and earnings below the Street's estimates. The company also said it expects revenues for the first quarter of 2013 would fall significantly. Dicks Sporting added that reducing inventories in December adversely affected sales of cold-weather clothes in January.
Financial stocks were the biggest gainers among the top ten S&P 500 industry groups. The Financial Select Sector SPDR (XLF) gained almost 0.8%. Stocks such as JPMorgan Chase & Co. (NYSE: JPM ), Wells Fargo & Co (NYSE: WFC ), Citigroup Inc. (NYSE: C ), Bank of America Corp (NYSE: BAC ) and Goldman Sachs Group, Inc. (NYSE: GS ) increased 0.6%, 1.7%, 2.0%, 0.7% and 0.2%, respectively.
The Materials sector also had a good run and the Materials Select Sector SPDR (XLB) gained 0.6%. Stocks such as Alcoa Inc (NYSE: AA ), E I Du Pont De Nemours And Co (NYSE: DD ), The Dow Chemical Company (NYSE: DOW ), Monsanto Company (NYSE: MON ) and FMC Corp (NYSE: FMC ) increased 0.7%, 0.4%, 0.7%, 0.8% and 0.4%, respectively.
ALCOA INC (AA): Free Stock Analysis Report
BANK OF AMER CP (BAC): Free Stock Analysis Report
CITIGROUP INC (C): Free Stock Analysis Report
DU PONT (EI) DE (DD): Free Stock Analysis Report
DOW CHEMICAL (DOW): Free Stock Analysis Report
FMC CORP (FMC): Free Stock Analysis Report
GOLDMAN SACHS (GS): Free Stock Analysis Report
JPMORGAN CHASE (JPM): Free Stock Analysis Report
MONSANTO CO-NEW (MON): Free Stock Analysis Report
WELLS FARGO-NEW (WFC): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stocks such as Alcoa Inc (NYSE: AA ), E I Du Pont De Nemours And Co (NYSE: DD ), The Dow Chemical Company (NYSE: DOW ), Monsanto Company (NYSE: MON ) and FMC Corp (NYSE: FMC ) increased 0.7%, 0.4%, 0.7%, 0.8% and 0.4%, respectively. ALCOA INC (AA): Free Stock Analysis Report BANK OF AMER CP (BAC): Free Stock Analysis Report CITIGROUP INC (C): Free Stock Analysis Report DU PONT (EI) DE (DD): Free Stock Analysis Report DOW CHEMICAL (DOW): Free Stock Analysis Report FMC CORP (FMC): Free Stock Analysis Report GOLDMAN SACHS (GS): Free Stock Analysis Report JPMORGAN CHASE (JPM): Free Stock Analysis Report MONSANTO CO-NEW (MON): Free Stock Analysis Report WELLS FARGO-NEW (WFC): Free Stock Analysis Report To read this article on Zacks.com click here. Since breaking a record high last Tuesday, the Dow has increased about 2% following encouraging economic data on employment and initial claims.
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Stocks such as Alcoa Inc (NYSE: AA ), E I Du Pont De Nemours And Co (NYSE: DD ), The Dow Chemical Company (NYSE: DOW ), Monsanto Company (NYSE: MON ) and FMC Corp (NYSE: FMC ) increased 0.7%, 0.4%, 0.7%, 0.8% and 0.4%, respectively. ALCOA INC (AA): Free Stock Analysis Report BANK OF AMER CP (BAC): Free Stock Analysis Report CITIGROUP INC (C): Free Stock Analysis Report DU PONT (EI) DE (DD): Free Stock Analysis Report DOW CHEMICAL (DOW): Free Stock Analysis Report FMC CORP (FMC): Free Stock Analysis Report GOLDMAN SACHS (GS): Free Stock Analysis Report JPMORGAN CHASE (JPM): Free Stock Analysis Report MONSANTO CO-NEW (MON): Free Stock Analysis Report WELLS FARGO-NEW (WFC): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks such as JPMorgan Chase & Co. (NYSE: JPM ), Wells Fargo & Co (NYSE: WFC ), Citigroup Inc. (NYSE: C ), Bank of America Corp (NYSE: BAC ) and Goldman Sachs Group, Inc. (NYSE: GS ) increased 0.6%, 1.7%, 2.0%, 0.7% and 0.2%, respectively.
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Stocks such as Alcoa Inc (NYSE: AA ), E I Du Pont De Nemours And Co (NYSE: DD ), The Dow Chemical Company (NYSE: DOW ), Monsanto Company (NYSE: MON ) and FMC Corp (NYSE: FMC ) increased 0.7%, 0.4%, 0.7%, 0.8% and 0.4%, respectively. ALCOA INC (AA): Free Stock Analysis Report BANK OF AMER CP (BAC): Free Stock Analysis Report CITIGROUP INC (C): Free Stock Analysis Report DU PONT (EI) DE (DD): Free Stock Analysis Report DOW CHEMICAL (DOW): Free Stock Analysis Report FMC CORP (FMC): Free Stock Analysis Report GOLDMAN SACHS (GS): Free Stock Analysis Report JPMORGAN CHASE (JPM): Free Stock Analysis Report MONSANTO CO-NEW (MON): Free Stock Analysis Report WELLS FARGO-NEW (WFC): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks such as JPMorgan Chase & Co. (NYSE: JPM ), Wells Fargo & Co (NYSE: WFC ), Citigroup Inc. (NYSE: C ), Bank of America Corp (NYSE: BAC ) and Goldman Sachs Group, Inc. (NYSE: GS ) increased 0.6%, 1.7%, 2.0%, 0.7% and 0.2%, respectively.
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Stocks such as Alcoa Inc (NYSE: AA ), E I Du Pont De Nemours And Co (NYSE: DD ), The Dow Chemical Company (NYSE: DOW ), Monsanto Company (NYSE: MON ) and FMC Corp (NYSE: FMC ) increased 0.7%, 0.4%, 0.7%, 0.8% and 0.4%, respectively. ALCOA INC (AA): Free Stock Analysis Report BANK OF AMER CP (BAC): Free Stock Analysis Report CITIGROUP INC (C): Free Stock Analysis Report DU PONT (EI) DE (DD): Free Stock Analysis Report DOW CHEMICAL (DOW): Free Stock Analysis Report FMC CORP (FMC): Free Stock Analysis Report GOLDMAN SACHS (GS): Free Stock Analysis Report JPMORGAN CHASE (JPM): Free Stock Analysis Report MONSANTO CO-NEW (MON): Free Stock Analysis Report WELLS FARGO-NEW (WFC): Free Stock Analysis Report To read this article on Zacks.com click here. The S&P 500 breached its highest intra-day level briefly while the CBOE Volatility Index was at its lowest level in more than six years.
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1419.0
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2013-03-11 00:00:00 UTC
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ArcelorMittal Hedges Business Risk And Targets Growth With Mining Expansion
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https://www.nasdaq.com/articles/arcelormittal-hedges-business-risk-and-targets-growth-mining-expansion-2013-03-11
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ArcelorMittal's ( MT ) board of directors has approved the expansion of iron ore mining capacity in Liberia from 4 million tonnes per year to 15 million tonnes per year. This capacity will be achieved in 2015.
Recognizing the growth potential and also to hedge against rising prices of major raw materials like iron ore and coal, ArcelorMittal has consciously been realigning its focus on mining. The company is projecting growth in iron ore output to 84 million tonnes in 2015 from 56 million tonnes in 2012.
See our full analysis for ArcelorMittal
The investments will be carried out to build an iron ore concentrator, expand the port facilities in Buchanan, and increase utilization of rail capacity. The iron ore concentrator will be built at the mine site in Yekapa to produce iron ore pellets which are used exclusively by steel makers. The Buchanan port will get a new fixed ship loader that will have a loading capacity of 6,000-8,000 metric tonnes of iron ore per hour. The company has already invested $1 billion in the country so far, including the money spent on construction of schools and hospitals in areas where it operates. For the new investments approved by the board, however, ArcelorMittal refused to provide numerical estimates.
ArcelorMittal's Iron Ore Mining Business
ArcelorMittal has a global portfolio of 16 operating units with mines in operation and development and is among the largest iron ore producers in the world. At the end of 2012, ArcelorMittal's iron ore production from its own mines and through strategic contracts stood at 68.1 million tonnes and met 61% of the company's iron ore requirements. The production from its own mines constituted 55.9 million tonnes of the total.
The company's main mining products include iron ore lump, fines, concentrate and pellets. As of December 31, 2012, ArcelorMittal's iron ore reserves were estimated at 4.3 billion tonnes. Its long-life iron ore resources provide a measure of security of supply and an important natural hedge against raw material volatility and global supply constraints. Since January 1, 2011, the mining business has become a separate reportable segment in ArcelorMittal's financial statements. This enhances the ability to optimize capital allocation and pursue growth plans, which include a material increase in production and sales to third parties at market prices.
ArcelorMittal aims to increase iron ore shipments in 2013 by approximately 20% from the previous year's level of 28.8 million tonnes to reach 34.5 million tonnes. This will be achieved by expanding production at its Liberian and Canadian operations. The Canadian operations alone are expected to yield 24 million tonnes of iron ore in 2013. As the company expands mining capacity through investments in lower cost operations, it expects the operating cost per unit to come down significantly by 2015.
We have a price estimate for ArcelorMittal of $15 , which we will soon revise to incorporate the fourth quarter earnings results.
Understand How a Company's Products Impact its Stock Price at Trefis
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Recognizing the growth potential and also to hedge against rising prices of major raw materials like iron ore and coal, ArcelorMittal has consciously been realigning its focus on mining. See our full analysis for ArcelorMittal The investments will be carried out to build an iron ore concentrator, expand the port facilities in Buchanan, and increase utilization of rail capacity. This enhances the ability to optimize capital allocation and pursue growth plans, which include a material increase in production and sales to third parties at market prices.
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ArcelorMittal's ( MT ) board of directors has approved the expansion of iron ore mining capacity in Liberia from 4 million tonnes per year to 15 million tonnes per year. ArcelorMittal's Iron Ore Mining Business ArcelorMittal has a global portfolio of 16 operating units with mines in operation and development and is among the largest iron ore producers in the world. As the company expands mining capacity through investments in lower cost operations, it expects the operating cost per unit to come down significantly by 2015.
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ArcelorMittal's ( MT ) board of directors has approved the expansion of iron ore mining capacity in Liberia from 4 million tonnes per year to 15 million tonnes per year. ArcelorMittal's Iron Ore Mining Business ArcelorMittal has a global portfolio of 16 operating units with mines in operation and development and is among the largest iron ore producers in the world. At the end of 2012, ArcelorMittal's iron ore production from its own mines and through strategic contracts stood at 68.1 million tonnes and met 61% of the company's iron ore requirements.
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Recognizing the growth potential and also to hedge against rising prices of major raw materials like iron ore and coal, ArcelorMittal has consciously been realigning its focus on mining. ArcelorMittal's Iron Ore Mining Business ArcelorMittal has a global portfolio of 16 operating units with mines in operation and development and is among the largest iron ore producers in the world. The Canadian operations alone are expected to yield 24 million tonnes of iron ore in 2013.
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1420.0
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2013-03-04 00:00:00 UTC
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Alcoa Recognized Again by Fortune - Analyst Blog
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AA
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https://www.nasdaq.com/articles/alcoa-recognized-again-by-fortune-analyst-blog-2013-03-04
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Aluminum giant Alcoa Inc. ( AA ) announced that it has been recognized by the Fortune magazine as the "most admired" metals company in the world for the second time in a row.
The most admired list of Fortune is based on the surveys conducted by executives, directors and analysts who rate companies in their own industry. Out of the nine parameters that are required for the recognition, Alcoa topped in seven of them. The parameters included innovation, people management, use of corporate assets, social responsibility, quality of management, financial soundness and long-term investment.
Alcoa has been in Fortune's "most admired" list since the magazine began the annual ranking 30 years ago. Alcoa attributes its success to its employees who strive toward continuous growth of the company, leading to excellence.
Last month, Alcoa received the 2013 Accessory of the Year Award in China. The company was honored in the Best Safety & Energy Savings category. Alcoa received the award based on its contribution to China's bus manufacturing industry. Alcoa's award win was dedicated to three factors.
The first one being its brand influence and reputation. The second factor taken into consideration was application of Alcoa's products in the China bus market. Alcoa has a presence in China since 2004 and advanced processes and technologies, as well as high-quality products have made positive contributions to the development of China's bus manufacturing industry.
The company also expanded its presence in the country by opening a production facility in Suzhou, China, and created a full wheel manufacturing, distribution, sales and service network in China. The third factor was Lightweighting. Alcoa's forged aluminum wheels help to lightweight the commercial vehicle industry, making it an industry leader.
Alcoa is among the world leader with respect to production and management of primary aluminum, fabricated aluminum, and alumina as well as the world's largest miner of bauxite and refiner of alumina.
Alcoa currently retains a short-term Zacks Rank #3 (Hold).
Other companies in the mining industry with favorable Zacks Ranks are Aluminum Corporation Of China Limited ( ACH ), Paramount gold and Silver Corp. ( PZG ) and Denison Mines Corp. ( DNN ) with all carrying a Zacks Rank #2 (Buy).
ALCOA INC (AA): Free Stock Analysis Report
ALUMINUM CP-ADR (ACH): Free Stock Analysis Report
DENISON MINES (DNN): Free Stock Analysis Report
PARAMOUNT GOLD (PZG): Get Free Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Aluminum giant Alcoa Inc. ( AA ) announced that it has been recognized by the Fortune magazine as the "most admired" metals company in the world for the second time in a row. ALCOA INC (AA): Free Stock Analysis Report ALUMINUM CP-ADR (ACH): Free Stock Analysis Report DENISON MINES (DNN): Free Stock Analysis Report PARAMOUNT GOLD (PZG): Get Free Report To read this article on Zacks.com click here. The most admired list of Fortune is based on the surveys conducted by executives, directors and analysts who rate companies in their own industry.
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ALCOA INC (AA): Free Stock Analysis Report ALUMINUM CP-ADR (ACH): Free Stock Analysis Report DENISON MINES (DNN): Free Stock Analysis Report PARAMOUNT GOLD (PZG): Get Free Report To read this article on Zacks.com click here. Aluminum giant Alcoa Inc. ( AA ) announced that it has been recognized by the Fortune magazine as the "most admired" metals company in the world for the second time in a row. Alcoa received the award based on its contribution to China's bus manufacturing industry.
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ALCOA INC (AA): Free Stock Analysis Report ALUMINUM CP-ADR (ACH): Free Stock Analysis Report DENISON MINES (DNN): Free Stock Analysis Report PARAMOUNT GOLD (PZG): Get Free Report To read this article on Zacks.com click here. Aluminum giant Alcoa Inc. ( AA ) announced that it has been recognized by the Fortune magazine as the "most admired" metals company in the world for the second time in a row. Alcoa has a presence in China since 2004 and advanced processes and technologies, as well as high-quality products have made positive contributions to the development of China's bus manufacturing industry.
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Aluminum giant Alcoa Inc. ( AA ) announced that it has been recognized by the Fortune magazine as the "most admired" metals company in the world for the second time in a row. ALCOA INC (AA): Free Stock Analysis Report ALUMINUM CP-ADR (ACH): Free Stock Analysis Report DENISON MINES (DNN): Free Stock Analysis Report PARAMOUNT GOLD (PZG): Get Free Report To read this article on Zacks.com click here. Alcoa has been in Fortune's "most admired" list since the magazine began the annual ranking 30 years ago.
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1421.0
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2013-02-25 00:00:00 UTC
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After Hours Most Active for Feb 25, 2013 : QQQ, BAC, SIRI, MT, XOM, NLY, T, FB, AA, AFFY, INTC, MSFT
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https://www.nasdaq.com/articles/after-hours-most-active-feb-25-2013-qqq-bac-siri-mt-xom-nly-t-fb-aa-affy-intc-msft-2013-02
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The NASDAQ 100 After Hours Indicator is down -1 to 2,699.97. The total After hours volume is currently 35,122,503 shares traded.
The following are the most active stocks for the after hours session :
PowerShares QQQ Trust, Series 1 ( QQQ ) is -0.1 at $66.21, with 3,848,274 shares traded. This represents a 10.28% increase from its 52 Week Low.
Bank of America Corporation ( BAC ) is -0.01 at $11.02, with 2,605,161 shares traded. BAC's current last sale is 84.77% of the target price of $13.
Sirius XM Radio Inc. ( SIRI ) is -0.02 at $3.01, with 1,529,878 shares traded. As reported in the last short interest update the days to cover for SIRI is 10.342571; this calculation is based on the average trading volume of the stock.
ArcelorMittal ( MT ) is +0.03 at $14.90, with 1,336,593 shares traded. As reported by Zacks, the current mean recommendation for MT is in the "buy range".
Exxon Mobil Corporation ( XOM ) is unchanged at $87.70, with 1,143,643 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2013. The consensus EPS forecast is $1.96. XOM's current last sale is 89.95% of the target price of $97.5.
Annaly Capital Management Inc ( NLY ) is unchanged at $14.94, with 961,476 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2013. The consensus EPS forecast is $0.36. NLY's current last sale is 99.6% of the target price of $15.
AT&T Inc. ( T ) is +0.01 at $35.20, with 937,020 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2013. The consensus EPS forecast is $0.63. T's current last sale is 95.14% of the target price of $37.
Facebook, Inc. ( FB ) is unchanged at $27.27, with 896,376 shares traded. As reported by Zacks, the current mean recommendation for FB is in the "buy range".
Alcoa Inc. ( AA ) is unchanged at $8.42, with 867,237 shares traded. AA's current last sale is 84.2% of the target price of $10.
Affymax, Inc. ( AFFY ) is +0.01 at $2.45, with 752,650 shares traded., following a 52-week high recorded in today's regular session.
Intel Corporation ( INTC ) is +0.12 at $20.35, with 724,480 shares traded. INTC's current last sale is 90.44% of the target price of $22.5.
Microsoft Corporation ( MSFT ) is unchanged at $27.37, with 654,186 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2013. The consensus EPS forecast is $0.77. As reported by Zacks, the current mean recommendation for MSFT is in the "buy range".
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alcoa Inc. ( AA ) is unchanged at $8.42, with 867,237 shares traded. AA's current last sale is 84.2% of the target price of $10. As reported in the last short interest update the days to cover for SIRI is 10.342571; this calculation is based on the average trading volume of the stock.
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Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2013. Alcoa Inc. ( AA ) is unchanged at $8.42, with 867,237 shares traded. AA's current last sale is 84.2% of the target price of $10.
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Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2013. Alcoa Inc. ( AA ) is unchanged at $8.42, with 867,237 shares traded. AA's current last sale is 84.2% of the target price of $10.
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Alcoa Inc. ( AA ) is unchanged at $8.42, with 867,237 shares traded. AA's current last sale is 84.2% of the target price of $10. The NASDAQ 100 After Hours Indicator is down -1 to 2,699.97.
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1422.0
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2013-02-20 00:00:00 UTC
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Metal Turnaround Stocks: From Laggards To Leaders
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https://www.nasdaq.com/articles/metal-turnaround-stocks-laggards-leaders-2013-02-20
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Submitted by George Putnam, III as part of our contributors program .
In 2012, most asset classes (such as stocks and bonds) performed well, but a noticeable laggard was commodities and commodity-related investments. Among other things, that asset class was hurt by concerns about the downturn in the European economies and a possible slowdown in China. As a result, the steel and aluminum stocks were among the worst performers in the global stock markets.
This grabbed our attention for two reasons, one technical and the other fundamental. On the technical side, investor views can change rapidly, and we've often seen one year's losers become the next year's winners.
On the fundamental side, there are several economic factors that could work to the benefit of the metals producers. Over the last decade or so, there has been steady consolidation in the sector. Large producers have gobbled up smaller producers around the globe, thereby reducing competition. Low energy prices in North America will help the U.S. metals companies. There are signs of a nascent rebound in construction in the U.S.-homebuilding is already on the mend, and commercial construction usually follows. There are also signs that the slowdown in China may not be as great as many investors feared.
Put all these things together and it makes the steel and aluminum stocks look like very attractive turnaround investment candidates . The stocks discussed below are all large, global producers that would benefit greatly from a rebound in the sector.
AK Steel Holding's ( AKS ) roots go back to the late 1800′s; its present form came a century later out of a partnership between Armco and Kawasaki. AK is one of the most leveraged steel producers, which adds to the risk in the stock. But it also gives the stock the most powerful rebound potential if industry conditions do improve. Several recent actions have improved the balance sheet somewhat, and it looks like the company has sufficient resources for at least the next couple of years.
Alcoa ( AA ) is one of the world's leading makers of aluminum. With its sensitivity to general economic conditions, particularly in the automotive and construction industries, it should not be a surprise that the stock has languished since the end of the last recession. But Alcoa has reduced operating costs, in part, by switching some manufacturing to natural gas. In addition, several industry players, including Alcoa, have reduced capacity. As a result, aluminum pricing is beginning to strengthen. With solid financials, look for Alcoa to perform well as global economic confidence improves.
Aluminum Corp. of China (Chinalco) ( ACH ) is China's largest producer of alumina (the raw material for aluminum) as well as its largest aluminum fabricator. As the Chinese market struggles with potential over-capacity, Chinalco is seeking to manage costs as well as expand into other related markets, such as copper, coal, iron ore and rare earth metals. While there is evidence of overbuilding in areas of China, the stock has strong rebound potential if economic growth picks up again there.
ArcelorMittal ( MT ) is based in Luxembourg, but it has a presence in more than 60 countries. The company claims to be the world's leading steel and mining company with leadership positions in the automotive, appliance, packaging and construction markets. Considerable exposure to Europe has crimped operating results. But management is being aggressive in rationalizing operations, cutting the dividend and firming up the balance sheet with new issues of stock and subordinated notes.
Gerdau S.A. ( GGB ) is a Brazilian-based steel manufacturing company. It has a strong presence in South America but also operates in the U.S., Canada, Spain and India. Gerdau has faced all of the problems that the industry has endured in recent years, but its home-field advantage in Brazil and South America positions it well for future growth. Among other sources of regional stimulation will be the 2014 World Cup and the 2016 Summer Olympics.
Nucor (NUE) is the largest U.S. operator of mini-mills, smaller steel facilities that use scrap as their raw material. The firm's electric arc furnaces are more versatile and more energy efficient than competitors' blast furnace operations. Arc furnaces have allowed Nucor to quickly adapt production levels to final demand, a flexibility that helped management maintain the firm's financial strength during the latest downturn. The company has a number of growth initiatives, including new natural-gas furnace operations, strategic acquisitions and international joint ventures. Nucor has a record of 40 years of dividend increases, a record that is likely to be extended in 2013.
Posco (PKX) is the largest steel producer in S. Korea and one of the largest in the world. The bulk of sales are to the Korean market, with China and Japan also being significant. The company's exposure to autos and shipbuilding hurt during the latest recession, but it remains competitive and solidly financed. It recently joined a consortium to buy a mine responsible for 40% of Canada's iron ore production. With its strong Asian presence, Posco appears cheaply valued.
Steel Dynamics (STLD) was formed in 1993 by former Nucor employees. Ever since, the management team has received high marks for having created a well diversified, vertically integrated, low-cost mini-mill operation. In recent years, the company has done a good job of weathering the cyclical downturn in its most important markets, construction, autos and machinery. Steel Dynamics will be an important industry force in the years to come.
Tenaris S.A. (TS), headquartered in Luxemburg, makes steel tubing and related products that are used primarily by the oil & gas industry. Other important markets include power generation, industrial products and automotive. Despite tough headwinds, operations have remained sufficiently profitable to allow for a substantial reduction in debt. Having expanded globally, Tenaris is now well positioned to leverage off a rebounding energy sector.
US Steel (X), with operations dating back to 1901, is one of the world's largest integrated steel producers. The last several years have been bumpy for the company, but today it is well situated to capitalize on a rebound in the auto sector, which accounts for about 30% of sales. It should also benefit from a rebound in the energy sector via its tubing operations. The balance sheet is decent enough, although it does have an overhang of unfunded pension and healthcare liabilities. Even so, the stock looks attractive, and there is a good chance of upside surprises in 2013.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alcoa ( AA ) is one of the world's leading makers of aluminum. Gerdau has faced all of the problems that the industry has endured in recent years, but its home-field advantage in Brazil and South America positions it well for future growth. Arc furnaces have allowed Nucor to quickly adapt production levels to final demand, a flexibility that helped management maintain the firm's financial strength during the latest downturn.
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Alcoa ( AA ) is one of the world's leading makers of aluminum. Aluminum Corp. of China (Chinalco) ( ACH ) is China's largest producer of alumina (the raw material for aluminum) as well as its largest aluminum fabricator. Other important markets include power generation, industrial products and automotive.
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Alcoa ( AA ) is one of the world's leading makers of aluminum. As a result, the steel and aluminum stocks were among the worst performers in the global stock markets. The company claims to be the world's leading steel and mining company with leadership positions in the automotive, appliance, packaging and construction markets.
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Alcoa ( AA ) is one of the world's leading makers of aluminum. As a result, the steel and aluminum stocks were among the worst performers in the global stock markets. Several recent actions have improved the balance sheet somewhat, and it looks like the company has sufficient resources for at least the next couple of years.
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1423.0
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2013-02-20 00:00:00 UTC
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Market Close Report: NASDAQ Composite index closes at 3,164.41 down -49.18 points
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https://www.nasdaq.com/articles/market-close-report-nasdaq-composite-index-closes-316441-down-4918-points-2013-02-20
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Wednesday's session closes with the NASDAQ Composite Index at 3,164.41. The total shares traded for the NASDAQ was over 1.94 billion. Declining stocks led advancers by 3.63 to 1 ratio. There were 542 advancers and 1969 decliners for the day. On the NASDAQ Stock Exchange 43 stocks reached a 52 week high and 13 those reaching lows totaled. The most active, advancers, decliners, unusual volume and most active by dollar volume can be monitored intraday on the Most Active Stocks page.
The NASDAQ 100 index closed down -1.54% for the day; a total of -42.87 points. The current value is 2,739.99. Garmin Ltd. ( GRMN ) had the largest percent change down (-9.43%) while Monster Beverage Corporation ( MNST ) had the largest percent change gain rising 1.99%.
The Dow Jones index closed down -.77% for the day; a total of -108.13 points. The current value is 13,927.54. Alcoa Inc. ( AA ) had the largest percent change down (-3.31%) while Merck & Company, Inc. ( MRK ) had the largest percent change gain rising 1.04%.
NASDAQ Market Wrap
As of 2/20/2013 4:44:02 PM
BILLIONS OF 1.94 NASDAQ SHARES TRADED TODAY 43 STOCKS REACHED A 52 WEEK HIGH 13 THOSE REACHING LOWS TOTALEDMonster Beverage Corporation[MNST]TOPS ADVANCERS LISTOF NASDAQ 100 % 1.99 INDEXMNST ROSE
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alcoa Inc. ( AA ) had the largest percent change down (-3.31%) while Merck & Company, Inc. ( MRK ) had the largest percent change gain rising 1.04%. Garmin Ltd. ( GRMN ) had the largest percent change down (-9.43%) while Monster Beverage Corporation ( MNST ) had the largest percent change gain rising 1.99%. The Dow Jones index closed down -.77% for the day; a total of -108.13 points.
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Alcoa Inc. ( AA ) had the largest percent change down (-3.31%) while Merck & Company, Inc. ( MRK ) had the largest percent change gain rising 1.04%. On the NASDAQ Stock Exchange 43 stocks reached a 52 week high and 13 those reaching lows totaled. Garmin Ltd. ( GRMN ) had the largest percent change down (-9.43%) while Monster Beverage Corporation ( MNST ) had the largest percent change gain rising 1.99%.
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Alcoa Inc. ( AA ) had the largest percent change down (-3.31%) while Merck & Company, Inc. ( MRK ) had the largest percent change gain rising 1.04%. On the NASDAQ Stock Exchange 43 stocks reached a 52 week high and 13 those reaching lows totaled. The most active, advancers, decliners, unusual volume and most active by dollar volume can be monitored intraday on the Most Active Stocks page.
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Alcoa Inc. ( AA ) had the largest percent change down (-3.31%) while Merck & Company, Inc. ( MRK ) had the largest percent change gain rising 1.04%. There were 542 advancers and 1969 decliners for the day. The NASDAQ 100 index closed down -1.54% for the day; a total of -42.87 points.
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1424.0
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2013-02-20 00:00:00 UTC
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Housing Data, Fed Minutes Beat Dow Back Below 14,000
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https://www.nasdaq.com/articles/housing-data-fed-minutes-beat-dow-back-below-14000-2013-02-20
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"The market has had a nice run and it needed something to spark the selling ... well, today it was the Fed minutes," said Schaeffer's Senior Technical Strategist Ryan Detrick, CMT, of today's trading. The Dow Jones Industrial Average (DJI) fell below 14,000 after hitting a five-year high in early trading, plummeting on the possibility that the Federal Reserve's bond buyback program may be ending. "The consensus was the minutes revealed the Fed might stop the stimulus a little earlier than expected. This led to some heavy selling across the board."
Continue reading for more on today's market, including :
Schaeffer's Senior Options Strategist Tony Venosa, CMT, gives eight reasons why Green Mountain Coffee Roasters ( GMCR ) is a good candidate for a long trade.
Schaeffer's Senior Trading Analyst Bryan Sapp on how "weakness in materials names and homebuilders" weighed on today's indexes.
Why online radio provider Pandora ( P ) got a lot of attention from optimistic option traders.
plus...
The Fed isn't totally united, the markets react with a bit of a dive, and how good news for The Boeing Company ( BA ) didn't help the airplane maker in the option pits.
The day got off to a slow start for the Dow Jones Industrial Average , with disappointing new housing data setting the stage. Then the latest Federal Reserve minutes -- which showed division over the bank's bond buyback program -- led to a deeper selloff, with the Dow closing at 13,927.54, down 108 points, or 0.8%, after hitting a five-year high of 14,058.27 in mid-morning trading. Only six of the 30 companies on the Dow advanced, led by drug maker Merck & Co. ( MRK ), which climbed 1%. The 24 decliners were led by Alcoa ( AA ), which dropped 3.3%.
The S&P 500 Index (SPX) also fell, dropping nearly 19 points, or 1.2%, to close at 1,511.95. The index did stay above the 1,500 mark for the 11th consecutive session. The Nasdaq Composite (COMP) fell 49 points, or 1.5%, to finish at 3,164.41.
The CBOE Volatility Index (VIX) closed at 14.68, jumping 2.4 points, or 19.3%, to close above 14 for the first time since Feb. 4.
A Trader's Take :
"We were due for a pullback eventually, since the market can't go up forever," Detrick said. "My big concern is that small-caps and technology were hit very hard. Anytime those two areas lag like today, that is concerning for the overall strength of the market."
3 Things to Know About Today's Market :
Minutes from the Jan. 29-30 Federal Open Market Committee meeting revealed mixed opinion regarding the central bank's bond-buying program known as QE (quantitative easing). Some officials expressed concern about ongoing risks associated with the program, including possible inflation. (Bloomberg)
New residential home construction fell 8.5% last month as compared with the previous year, according to the U.S. Commerce Department -- and the seasonally adjusted annual rate of 890,000 new home starts was down from December's multi-year high of 973,000. (USA Today)
The U.S. Labor Department reported that producer prices rose by 0.2% in January on a seasonally adjusted basis, the reading's first increase since September. (NBC News)
5 Stocks We Were Watching Today :
Airplane maker The Boeing Company ( BA ) got some good news today, but it wasn't enough to deter short-term bears.
Bulls bet on an upturn for MGM Resorts International (MGM) after the company released its quarterly earnings this morning and announced a special dividend.
Chesapeake Energy Corporation (CHK) was the target of pessimistic traders looking for a dip following Thursday's earnings release.
Ford Motor Company (F) option traders discounted the recent stock drop and bet that shares would recover by early 2015.
Akamai Technologies (AKAM) slid on the stock charts and option traders bet that the share price would continue to fall into next month.
For a look at today's options movers and commodities activity, head to page 2.
Commodities :
Crude futures finished lower on Wednesday -- oil for April delivery, which assumed front-month status after the close, ended on a dip of $1.88, or 1.9%, at $95.22 per barrel.
The rising U.S. dollar continued to put downward pressure on gold, with the April contract dropping $26.20, or 1.6%, to finish the day at $1,578 per ounce -- its lowest close since July 12.
At the end of every market day, the staff at Schaeffer's Investment Research reviews the trading day in detail, covering major events and key market developments. Don't miss this critical, timely and insightful report. If you enjoyed today's edition of Market Recap, sign up here for free daily delivery straight to your inbox.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The 24 decliners were led by Alcoa ( AA ), which dropped 3.3%. The Dow Jones Industrial Average (DJI) fell below 14,000 after hitting a five-year high in early trading, plummeting on the possibility that the Federal Reserve's bond buyback program may be ending. Continue reading for more on today's market, including : Schaeffer's Senior Options Strategist Tony Venosa, CMT, gives eight reasons why Green Mountain Coffee Roasters ( GMCR ) is a good candidate for a long trade.
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The 24 decliners were led by Alcoa ( AA ), which dropped 3.3%. The Dow Jones Industrial Average (DJI) fell below 14,000 after hitting a five-year high in early trading, plummeting on the possibility that the Federal Reserve's bond buyback program may be ending. Continue reading for more on today's market, including : Schaeffer's Senior Options Strategist Tony Venosa, CMT, gives eight reasons why Green Mountain Coffee Roasters ( GMCR ) is a good candidate for a long trade.
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The 24 decliners were led by Alcoa ( AA ), which dropped 3.3%. "The market has had a nice run and it needed something to spark the selling ... well, today it was the Fed minutes," said Schaeffer's Senior Technical Strategist Ryan Detrick, CMT, of today's trading. Then the latest Federal Reserve minutes -- which showed division over the bank's bond buyback program -- led to a deeper selloff, with the Dow closing at 13,927.54, down 108 points, or 0.8%, after hitting a five-year high of 14,058.27 in mid-morning trading.
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The 24 decliners were led by Alcoa ( AA ), which dropped 3.3%. "The market has had a nice run and it needed something to spark the selling ... well, today it was the Fed minutes," said Schaeffer's Senior Technical Strategist Ryan Detrick, CMT, of today's trading. The Fed isn't totally united, the markets react with a bit of a dive, and how good news for The Boeing Company ( BA ) didn't help the airplane maker in the option pits.
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1425.0
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2013-02-20 00:00:00 UTC
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The Best Stock for the Comeback Commodity of 2013
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https://www.nasdaq.com/articles/best-stock-comeback-commodity-2013-2013-02-20
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Although gold prices have taken a big hit of late and may be at the onset of a major pullback, there's one metal that's only recently started to rebound and is taking somestocks with it -- aluminum.
Since August of last year, aluminum prices have rallied from a multi-year low of 82 cents a pound to the current price of 96 cents a pound. Some say the shape of aluminum's price chart suggest a breakout is imminent, while others say the breakout is already underway.
Either way, with aluminum prices on the mend, companies like Alcoa ( AA ) and Century Aluminum (Nasdaq: CENX) are finding it's easier to turn aprofit . If aluminum prices continue their march toward higher levels, then these companies may post far wider profits this year than anyone is expecting, making aluminum stocks a potential Cinderella story for 2013.
A picture is worth a thousand words
The past couple of years haven't been good for the aluminum industry. After aluminum prices peaked around a two-year high of $1.35 a pound in early 2011 and began to fall to that late-2012 low of 82 cents a pound, aluminum companies commensurately suffered. For example, Alcoa's per-share profit plunged from 72 cents in 2011 to only 24 cents per share in 2012. Noranda Aluminum Holding ( NOR ) watched itsbottom line slump from $1.05 a share in 2011 to 2 cents a share in 2012.
Some other companies were entirely unprofitable ventures during this same period.
The shape of aluminum's price chart, however, suggests the aluminum industry is poised for a strong 2013.
For starters, aluminum prices have at the very least stabilized. The current price of 96 cents a pound is the same prices the metal was treading at in early January as well as in September 2012.
Aluminum is going through more than just a price stabilization though. The falling trend lines have been breached. We've seen a series of higher lows that have formed the bottom side of a triangle, or a wedge. We've seenbullish crosses of aluminum's key moving averages. It all points to an undeniable budding uptrend from the metal, whether the pros think it should be happening or not.
Who wins?
There are a handful of well-known companies set to take advantage of aluminum's rebound, including Century Aluminum, Noranda, Alcoa, Aluminum Corp. of China ( ACH ) , Alumina ( AWC ) , and Kaiser Aluminum (Nasdaq: KALU) .Currency tension between China and the United States, however, may be enough of a reason to steer clear of Aluminum Corp. of China. Alumina may be best left avoided as well, as it's an Australian company with heavy Chinese ownership that could bring an unnecessary element of risk to the table.
This leaves Kaiser Aluminum, Century Aluminum, Alcoa and Noranda.
Industry icon Alcoa is the easy and well-knownstock to own. Aside from the fact that it's a well-known company, its size makes it most likely tocapitalize oneconomies of scale . Yet, despite years of cost cuts, Alcoa is still contending with excessive expenses. The company's expenses were down 12% in the fourth quarter 2012, but it made little difference in terms of measurableearnings progress. Perhaps Alcoa's size is still more of aliability than anasset at this point.
So it's the smaller aluminum stocks -- Kaiser, Noranda and Century Aluminum -- that have quietly overcome the problems of their small size to bring real value to the table.
Kaiser seems merely average on the surface. Thedividend yield is only about 2%, and though itsnet profit margin of 6.1% is better than Alcoa's 0.8% and Noranda's typical 5%, it's still only a mediocre number. But Kaiser is on a growth binge. Sales were up 20% in 2011 and 4.5% in 2012, despite last year's 20% plunge in aluminum prices.
Noranda is certainly a bargain at almost six times trailing earnings and 10 times its forward-looking income. What really separates Noranda from the rest of the industry, however, is itsvertical integration -- Noranda supplies a great deal of its own raw aluminum, giving it tremendous control of its input expenses.
Finally, there's Century Aluminum, which isn't a bad company. Though it's not been profitable on a trailingbasis , it's expected to swing to a profit of 20 cents per share this year. Still, it's important to listen to theanalysts about this stock though. CRT Capital downgraded the stock in early January and Goldman did the same late in the month.
Risks to Consider: While a global economic malaise isn't good for any company, the real key to earnings beats from aluminum stocks this year is the metal's continued price increase. If aluminum prices slump, then these stocks would be dragged lower no matter what's going on with theeconomy .
Action to Take --> Among the six possible ways to play an aluminum rebound, my top pick is -- surprise -- Kaiser. It's the only one of the top four options that's really demonstrated it can consistently manage expenses yet still facilitate growth. In addition to the recent 20% increase in itsdividend , Kaiser Aluminum is the only one poised to lead the group out of its rut with what could be a 20% (perhaps more)upside by the end of the year.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
© Copyright 2001-2016 StreetAuthority, LLC. All Rights Reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Either way, with aluminum prices on the mend, companies like Alcoa ( AA ) and Century Aluminum (Nasdaq: CENX) are finding it's easier to turn aprofit . Although gold prices have taken a big hit of late and may be at the onset of a major pullback, there's one metal that's only recently started to rebound and is taking somestocks with it -- aluminum. Risks to Consider: While a global economic malaise isn't good for any company, the real key to earnings beats from aluminum stocks this year is the metal's continued price increase.
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Either way, with aluminum prices on the mend, companies like Alcoa ( AA ) and Century Aluminum (Nasdaq: CENX) are finding it's easier to turn aprofit . The shape of aluminum's price chart, however, suggests the aluminum industry is poised for a strong 2013. There are a handful of well-known companies set to take advantage of aluminum's rebound, including Century Aluminum, Noranda, Alcoa, Aluminum Corp. of China ( ACH ) , Alumina ( AWC ) , and Kaiser Aluminum (Nasdaq: KALU) .Currency tension between China and the United States, however, may be enough of a reason to steer clear of Aluminum Corp. of China.
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Either way, with aluminum prices on the mend, companies like Alcoa ( AA ) and Century Aluminum (Nasdaq: CENX) are finding it's easier to turn aprofit . If aluminum prices continue their march toward higher levels, then these companies may post far wider profits this year than anyone is expecting, making aluminum stocks a potential Cinderella story for 2013. After aluminum prices peaked around a two-year high of $1.35 a pound in early 2011 and began to fall to that late-2012 low of 82 cents a pound, aluminum companies commensurately suffered.
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Either way, with aluminum prices on the mend, companies like Alcoa ( AA ) and Century Aluminum (Nasdaq: CENX) are finding it's easier to turn aprofit . The shape of aluminum's price chart, however, suggests the aluminum industry is poised for a strong 2013. This leaves Kaiser Aluminum, Century Aluminum, Alcoa and Noranda.
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1426.0
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2013-02-19 00:00:00 UTC
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Dow Roars Out of Gate and Finishes Above 14,000
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https://www.nasdaq.com/articles/dow-roars-out-gate-and-finishes-above-14000-2013-02-19
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"Strong European returns sparked by a big improvement in the German investor confidence index got things started off in the right direction early," said Schaeffer's Senior Technical Strategist Ryan Detrick, CMT, on today's market, which saw the Dow Jones Industrial Average close above 14,000 for the first time since early last week and hit a new five-year high in the process. "It was a relatively quiet day on the news front though ... but that couldn't stop the new highs across the board, specifically new all-time highs in small and mid-cap stocks."
Continue reading for more on today's market, including :
Our Senior Trading Analyst Bryan Sapp says tomorrow and Thursday "should prove eventful" and highlights levels to watch .
How Google ( GOOG ) hitting a new all-time high played in the option markets.
Staples got ( SPLS ) a big boost from merger talks, which turned into bullish action among option traders.
plus...
A big day in the markets, a dire presidential warning, and how one trader is looking for a better buyout price for computer maker Dell Inc. ( DELL ).
Buoyed by encouraging news out of Europe and potential news of another big merger, the Dow Jones Industrial Average got off to a rip-roaring start and never quit -- finishing up nearly 54 points, or 0.4%, to close at 14,035.67. The day saw the Dow touch a new five-year high and close above 14,000 for the first time since Feb. 12. Cisco Systems ( CSCO ) led the 22 advancers on the 30-member Dow, jumping 2.2%. Alcoa ( AA ) had the biggest drop of the eight decliners, losing 2.8%.
The S&P 500 Index also had a strong day, gaining 11 points, or 0.7%, to close at its intraday high of 1,530.94, also a five-year peak. The Nasdaq Composite finished at 3,213.59, up nearly 22 points, or 0.7%.
The CBOE Volatility Index (VIX) finished at 12.31, down about 0.2 point, or 1.2%.
A Trader's Take :
"Last week we saw Warren Buffett buy H.J. Heinz Company (HNZ), and this week we were greeted by a potential merger of Office Depot (ODP) and OfficeMax (OMX)," Detrick said. "This is yet another sign that merger and acquisition activity is alive and well and that the market continues to think there are tremendous values out there -- even though we are at multi-year highs."
3 Things to Know About Today's Market :
President Obama warned that the impending so-called "sequester" -- the automatic spending cuts set to go into effect March 1 -- could cause the federal government to shed jobs, which could mean "the unemployment rate might tick up again." (CNBC)
Confidence among homebuilders fell slightly in February but remained near the six-year high set last month. (Bloomberg)
Sony Corporation (ADR) (SNE) is set to unveil its new PlayStation 4 on Wednesday, beating both Nintendo (NTDOY) and Microsoft (MSFT) to market with the latest iteration of gaming platforms. (MarketWatch)
5 Stocks We Were Watching Today :
Option traders bet that Humana Inc. (HUM) would continue to struggle on the charts.
First Solar (FSLR) was targeted by short-term bulls looking to cash in on the stock's sudden surge.
One investor bucked the trend on SodaStream International (SODA) and laid down a pre-earnings bull put spread.
Another bold investor put down a big bet that there would be a higher buyout bid for computer maker Dell Inc. ( DELL ).
A new annual high from SunPower Corporation (SPWR) created a flurry of long calls, as traders look for the stock to go even higher.
For a look at today's options movers and commodities activity, head to page 2.
Commodities :
A weaker U.S. dollar helped crude oil futures rebound from last Friday's drop, with the soon-to-expire March contract adding 80 cents, or 0.8%, to close at $96.66 per barrel.
April-dated gold dropped $5.30, or 0.3%, to $1,604.20 an ounce (another new six-month low). This continued a downward trend for gold, with investors turning their buying power toward equities.
At the end of every market day, the staff at Schaeffer's Investment Research reviews the trading day in detail, covering major events and key market developments. Don't miss this critical, timely and insightful report. If you enjoyed today's edition of Market Recap, sign up here for free daily delivery straight to your inbox.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alcoa ( AA ) had the biggest drop of the eight decliners, losing 2.8%. Continue reading for more on today's market, including : Our Senior Trading Analyst Bryan Sapp says tomorrow and Thursday "should prove eventful" and highlights levels to watch . 3 Things to Know About Today's Market : President Obama warned that the impending so-called "sequester" -- the automatic spending cuts set to go into effect March 1 -- could cause the federal government to shed jobs, which could mean "the unemployment rate might tick up again."
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Alcoa ( AA ) had the biggest drop of the eight decliners, losing 2.8%. "Strong European returns sparked by a big improvement in the German investor confidence index got things started off in the right direction early," said Schaeffer's Senior Technical Strategist Ryan Detrick, CMT, on today's market, which saw the Dow Jones Industrial Average close above 14,000 for the first time since early last week and hit a new five-year high in the process. Buoyed by encouraging news out of Europe and potential news of another big merger, the Dow Jones Industrial Average got off to a rip-roaring start and never quit -- finishing up nearly 54 points, or 0.4%, to close at 14,035.67.
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Alcoa ( AA ) had the biggest drop of the eight decliners, losing 2.8%. "Strong European returns sparked by a big improvement in the German investor confidence index got things started off in the right direction early," said Schaeffer's Senior Technical Strategist Ryan Detrick, CMT, on today's market, which saw the Dow Jones Industrial Average close above 14,000 for the first time since early last week and hit a new five-year high in the process. plus... A big day in the markets, a dire presidential warning, and how one trader is looking for a better buyout price for computer maker Dell Inc. ( DELL ).
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Alcoa ( AA ) had the biggest drop of the eight decliners, losing 2.8%. The day saw the Dow touch a new five-year high and close above 14,000 for the first time since Feb. 12. The Nasdaq Composite finished at 3,213.59, up nearly 22 points, or 0.7%.
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1427.0
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2013-02-19 00:00:00 UTC
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Market Close Report: NASDAQ Composite index closes at 3,213.59 up 21.56 points
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https://www.nasdaq.com/articles/market-close-report-nasdaq-composite-index-closes-321359-2156-points-2013-02-19
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Tuesday's session closes with the NASDAQ Composite Index at 3,213.59. The total shares traded for the NASDAQ was over 1.74 billion.
Advancers stocks led declining by 2 to 1 ratio. There were 1662 advancers and 830 decliners for the day. On the NASDAQ Stock Exchange 172 stocks reached a 52 week high and 3 those reaching lows totaled. The most active, advancers, decliners, unusual volume and most active by dollar volume can be monitored intraday on the Most Active Stocks page.
The NASDAQ 100 index closed up .66% for the day; a total of 18.19 points. The current value is 2,782.86. Alexion Pharmaceuticals, Inc. ( ALXN ) had the largest percent change down (-3.05%) while Staples, Inc. ( SPLS ) had the largest percent change gain rising 13.13%.
The Dow Jones index closed up .39% for the day; a total of 53.91 points. The current value is 14,035.67. Alcoa Inc. ( AA ) had the largest percent change down (-2.79%) while Cisco Systems, Inc. ( CSCO ) had the largest percent change gain rising 2.24%.
NASDAQ Market Wrap
As of 2/19/2013 4:44:01 PM
BILLIONS OF 1.74 NASDAQ SHARES TRADED TODAY 172 STOCKS REACHED A 52 WEEK HIGH 3 THOSE REACHING LOWS TOTALEDStaples, Inc.[SPLS]TOPS ADVANCERS LISTOF NASDAQ 100 % 13.13 INDEXSPLS ROSE
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alcoa Inc. ( AA ) had the largest percent change down (-2.79%) while Cisco Systems, Inc. ( CSCO ) had the largest percent change gain rising 2.24%. Tuesday's session closes with the NASDAQ Composite Index at 3,213.59. The NASDAQ 100 index closed up .66% for the day; a total of 18.19 points.
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Alcoa Inc. ( AA ) had the largest percent change down (-2.79%) while Cisco Systems, Inc. ( CSCO ) had the largest percent change gain rising 2.24%. On the NASDAQ Stock Exchange 172 stocks reached a 52 week high and 3 those reaching lows totaled. Alexion Pharmaceuticals, Inc. ( ALXN ) had the largest percent change down (-3.05%) while Staples, Inc. ( SPLS ) had the largest percent change gain rising 13.13%.
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Alcoa Inc. ( AA ) had the largest percent change down (-2.79%) while Cisco Systems, Inc. ( CSCO ) had the largest percent change gain rising 2.24%. On the NASDAQ Stock Exchange 172 stocks reached a 52 week high and 3 those reaching lows totaled. The most active, advancers, decliners, unusual volume and most active by dollar volume can be monitored intraday on the Most Active Stocks page.
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Alcoa Inc. ( AA ) had the largest percent change down (-2.79%) while Cisco Systems, Inc. ( CSCO ) had the largest percent change gain rising 2.24%. There were 1662 advancers and 830 decliners for the day. The NASDAQ 100 index closed up .66% for the day; a total of 18.19 points.
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1428.0
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2013-02-15 00:00:00 UTC
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After Hours Most Active for Feb 15, 2013 : BAC, QQQ, ZTS, AA, DCT, BDN, CTAS, NWSA, TWX, MDLZ, MSFT, NCLH
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AA
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https://www.nasdaq.com/articles/after-hours-most-active-feb-15-2013-bac-qqq-zts-aa-dct-bdn-ctas-nwsa-twx-mdlz-msft-nclh
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The NASDAQ 100 After Hours Indicator is down -1.18 to 2,763.49. The total After hours volume is currently 23,439,501 shares traded.
The following are the most active stocks for the after hours session :
Bank of America Corporation ( BAC ) is -0.01 at $12.02, with 3,670,969 shares traded. Over the last four weeks they have had 10 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2013. The consensus EPS forecast is $0.23. BAC's current last sale is 92.46% of the target price of $13.
PowerShares QQQ Trust, Series 1 ( QQQ ) is -0.04 at $67.71, with 1,824,492 shares traded. This represents a 12.77% increase from its 52 Week Low.
Zoetis Inc. ( ZTS ) is -0.005 at $33.98, with 1,768,220 shares traded.
Alcoa Inc. ( AA ) is unchanged at $9.32, with 987,522 shares traded. AA's current last sale is 93.2% of the target price of $10.
DCT Industrial Trust Inc ( DCT ) is unchanged at $7.32, with 853,134 shares traded., following a 52-week high recorded in today's regular session.
Brandywine Realty Trust ( BDN ) is -0.0808 at $13.40, with 766,226 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2013. The consensus EPS forecast is $0.42. , following a 52-week high recorded in today's regular session.
Cintas Corporation ( CTAS ) is -1.0442 at $43.62, with 757,113 shares traded. As reported in the last short interest update the days to cover for CTAS is 8.825417; this calculation is based on the average trading volume of the stock.
News Corporation ( NWSA ) is -0.4553 at $28.45, with 740,022 shares traded. Over the last four weeks they have had 6 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2013. The consensus EPS forecast is $0.43. , following a 52-week high recorded in today's regular session.
Time Warner Inc. ( TWX ) is -0.0429 at $53.48, with 717,333 shares traded. Over the last four weeks they have had 5 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2013. The consensus EPS forecast is $0.74. As reported by Zacks, the current mean recommendation for TWX is in the "buy range".
Mondelez International, Inc. ( MDLZ ) is -0.1171 at $26.60, with 684,156 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2013. The consensus EPS forecast is $0.41. As reported by Zacks, the current mean recommendation for MDLZ is in the "buy range".
Microsoft Corporation ( MSFT ) is -0.01 at $28.01, with 655,885 shares traded. Over the last four weeks they have had 5 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2013. The consensus EPS forecast is $0.78. As reported by Zacks, the current mean recommendation for MSFT is in the "buy range".
Norwegian Cruise Line Holdings Ltd. ( NCLH ) is -0.01 at $30.26, with 442,660 shares traded., following a 52-week high recorded in today's regular session.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alcoa Inc. ( AA ) is unchanged at $9.32, with 987,522 shares traded. AA's current last sale is 93.2% of the target price of $10. The following are the most active stocks for the after hours session : Bank of America Corporation ( BAC ) is -0.01 at $12.02, with 3,670,969 shares traded.
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Alcoa Inc. ( AA ) is unchanged at $9.32, with 987,522 shares traded. AA's current last sale is 93.2% of the target price of $10. Over the last four weeks they have had 10 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2013.
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Alcoa Inc. ( AA ) is unchanged at $9.32, with 987,522 shares traded. AA's current last sale is 93.2% of the target price of $10. The following are the most active stocks for the after hours session : Bank of America Corporation ( BAC ) is -0.01 at $12.02, with 3,670,969 shares traded.
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Alcoa Inc. ( AA ) is unchanged at $9.32, with 987,522 shares traded. AA's current last sale is 93.2% of the target price of $10. The following are the most active stocks for the after hours session : Bank of America Corporation ( BAC ) is -0.01 at $12.02, with 3,670,969 shares traded.
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1429.0
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2013-02-14 00:00:00 UTC
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Metals & Mining Stock Outlook - Feb 2013 - Industry Outlook
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AA
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https://www.nasdaq.com/articles/metals-mining-stock-outlook-feb-2013-industry-outlook-2013-02-14
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A Brief Overview
The Metals & Mining industry broadly refers to metals and minerals extraction (mining) and the primary and secondary processing of these metals and minerals. The industry is oligarchic in structure, with a few producers accounting for a lion's share of the output.
With respect to volume, iron and steel commands a majority in the global metal industry, followed by aluminum. The iron and steel industry includes metal ore exploration and mining services as well as iron and steel foundries for smelting, rolling, forging, spinning, recycling, stamping, polishing and plating of iron and steel products.
The precious metal and minerals industry comprise companies engaged in the extraction and primary processing of gold, silver, platinum, diamond, semi-precious stones, uranium and other rare minerals and ores as well as cultivation of pearls.
The industry is highly cyclical and competitive. Historically, it has suffered from oversupply (excess of supply over demand). Metal producers are subject to cyclical fluctuations in prices, general economic conditions and end-user markets. The tepid global economic growth outlook has emerged as a major headwind for the global metal industry. Notwithstanding these near-term challenges, the group's long-term dynamics appear attractive.
Within the Zacks Industry classification, the industry is broadly grouped in the Basic Materials sector (one of 16 Zacks sectors) and is further sub-divided into three industries at the expanded level: Mining - Gold, Mining - Iron and Mining - Non-Ferrous. All the industries within the Basic Materials sector like chemicals, paper, steel and mining are economically sensitive, but the level of sensitivity and exposure to different stages of the economic cycle vary for each industry.
We rank all of the more than 250 industries in the 16 Zacks sectors based on the earnings outlook for the constituent companies in each industry. This ranking is available in the Zacks Industry Rank http://www.zacks.com/rank/industry.php.
The way to look at the complete list of Zacks Industry Rank for the 250+ companies is that the outlook for the top one-third of the list (Zacks Industry Rank of #85 and lower) is positive, while the outlook for the bottom one-third (Zacks Industry Rank #170 and higher) is negative.
For the Mining Industry, Iron Mining barely makes into the top 1/3rd with its Zacks Industry Rank #77, while the Non-Ferrous (aluminum, copper, etc.) and Gold Mining industries are barely in the bottom 1/3rd at Zacks Industry Rank of #187 and #182, respectively. The exact location of the three mining industries on the Zacks Industry Rank aside, one could safely say that the near-term outlook for the group is leaning towards a Neutral outlook.
A Detailed Look into Metals: Performance and Outlook
Steel
The steel industry has steadily recovered from the impact of the global economic downturn, which slashed crude steel production by 9% in 2009. According to the World Steel Association, world crude steel production was a record 1,548 Mt in 2012, outperforming the record set in 2011 by 1.2%. Significant growth in Asia and North America were instrumental for the annual upside, marred somewhat by declines in Europe and South America.
During 2012, production in Asia improved 2.7% to 1,012 Mt. China emerged as the leading steel producing country once again, up 3.1% year over year and yielding almost 46% of the global output. Production in Japan, the second largest producer, remained flat year over year. The United States held the third position, producing 88.6 Mt of crude steel, up 2.5% annually and accounting for 6% of the total global output. Production in Europe and South America were a dampener, declining 2.7% and 3.1%, respectively.
Let's have a look at the performance and outlook of the end markets for the industry:
The automotive and construction markets have historically been the largest consumers of steel. The automotive sector has been promising in recent times. Auto sales in the U.S. surged 13% to 14.5 million vehicles in Dec 2012, the highest volume attained in the last five years. The seasonally adjusted annual rate (SAAR) in December was 15.4 million vehicles, the second straight month of above 15 million SAAR in 2012. This performance will likely generate solid momentum going into 2013.
The robust growth rate in the sector has been fueled by strong pent-up demand, cheap financing, launch of several redesigned and fuel-efficient vehicles and rebound in consumer confidence thanks to a growing belief that the housing market is recovering.
Another major market, the construction sector, has so far been a drag on the steel companies' earnings. However, in 2012, the sector finally started picking up began signaling a recovery evidenced by solid growth in the major indicators.
The architecture billing index (ABI), an economic indicator that provides an approximate nine- to twelve-month glimpse into the future of non-residential construction spending activity, climbed back into the positive territory with a score of 50.2 in August after languishing in the negative territory for five consecutive months. Any score above 50 indicates an increase in billings and the score has remained stable till December.
The ABI readings in the fourth quarter of 2012, in fact, exhibited the strongest growth since the downturn in early 2008. This momentum is expected to persist and conditions are expected improve, albeit at a slow and steady rate.
The American Institute of Architects projects a 5% increase in spending in 2013 for non-residential construction projects, on the back of higher construction of commercial facilities, particularly for hotels followed by industrial construction spending. The spending is expected to shore up to 7.2% in 2014.
Meanwhile, the residential housing sector is also showing signs of positive growth with figures at highest levels in more than four years. In 2012, housing starts totaled 780,000, surging 28% from 2011 and housing permits (an indicator of future demand) escalated 30% to 813,000. Both attained their respective highest level since 2008. Housing completions rose 11% to 651,000 in 2012, the highest level since 2010.
According to the most recent most issued data, in December housing starts spiked 37% year over year to a seasonally adjusted annual rate of 954,000. Building permits were at a seasonally adjusted annual rate of 903,000, 29% higher than the year-ago figure.
In a nutshell, record-low mortgage rates, rising rents and reduced prices of properties are luring buyers. These figures reinforce the belief that U.S. residential construction is finally stabilizing and is on the road to a much awaited recovery.
Analyzing the fourth quarter results of the major steel companies in our coverage -- ArcelorMittal ( MT ), United States Steel ( X ), Nucor ( NUE ) and AK Steel ( AKS ) -- we see revenues were marred by the drop in average steel prices. This does not come as a surprise as oversupply in the U.S. steel industry and increased steel imports in the domestic market affected steel prices, which in turn hurt margins and profits of the steel players. Furthermore, the gloomy macroeconomic condition in Europe is another area of concern as it is the largest market for total U.S. exports.
Given the scenario in Europe, ArcelorMittal, the world's largest steelmaker in terms of volume and Europe's largest steelmaker, recently announced its plans to permanently close its plant in Liege, Belgium owing to the slack demand and weakening European economy. The company also announced the idling of its liquid phase in Oct 2011 due to structural over-capacity in Northern Europe. The production halt at the Liege plant was done to better focus on the company's downstream activities, operating five core lines and seven flexible lines.
However, economic conditions worsened since then and demand for steel in Europe declined another 8%-9% in 2012 and is currently 29% below the pre-crisis levels. The Leige business is heavily dependent on the automotive sector, which faced a major downturn in 2012. Consequently, tepid demand also had a hand in idling of the facility and ArcelorMittal further stated that it will close six production lines at Liege that manufacture finished steel products for the auto industry. It is also closing a coke plant, which produces fuel for blast furnaces.
Going into 2013, steelmakers expect profits to be affected by continued increase in steel imports, volatility in steel pricing along with macroeconomic uncertainty stemming from the recessionary conditions in Europe and sluggish growth in the emerging markets.
However, the sector will benefit from the strong momentum in the automotive markets. The outlook for other key markets -- transportation, energy, industrial and agricultural sectors also remains favorable. The turnaround in the so-far faltering construction sector will definitely provide a much-needed impetus to the sector.
Steelmakers are increasing their consolidation efforts, particularly in China and India, to derive economies of scale and other synergies to remain competitive. A major development in this sector was the recent merger of Japan's largest and the world's sixth-largest steel maker Nippon Steel Corporation with Sumitomo Metal Industries to form the world's second biggest steel firm -- Nippon Steel & Sumitomo Metal Corporation ( NSSMY ). With a combined capacity of 46.1 million tons, it has replaced China's Hebei Group in the second position, with production of 44.4 million tons. The merger is targeted to generate savings in the face of increasingly intense global competition.
China's recent attempt to bolster its economy by approving 60 infrastructure projects worth more than $150 billion will help bolster the steel sector. Prices could potentially stabilize on the back of a rebound in construction activity in the developing countries, in particular China, India and South Korea. Furthermore, the sector will reap the benefits of the Federal Reserve's move to boost the U.S economy. However, the European debt crisis and its potential global impact remain headwinds for the industry.
Gold
As per the World Gold Council, 2011 was a milestone year for gold as global demand for the yellow metal scaled up 0.4% to 4,067.1 tons at an estimated value of $205.5 billion -- the highest tonnage level with a value exceeding $200 billion since 1997. The increase was mainly driven by the investment sector, particularly in India, China and Europe.
As per the most recent data available, gold demand stood at 1084.6 tons in third quarter 2012, down 11% from the historic high level in the third quarter of 2011. Strong ETF inflow and higher demand from central banks was offset by declines in demand for jewelry, investment and in the technology sectors due to higher prices. Almost 68% of the decline stemmed from a steep drop in the bar and coin segment.
In absolute terms, gold demand in the quarter was valued at $57.6 billion, down 14% from the third quarter of fiscal 2011. Average gold price in the quarter stood at $1,652, down 3% year over year.
Central banks remained the primary purchasers of gold, accounting for around 9% of total gold demand at 97.6 tons. Investment demand declined 16%, mainly due to a drop in bar and coin investment. Gold demand in the technology sector was 108.2 tons, a 6% annual decline due to higher gold prices, weak consumer demand, uncertainty in Europe and substitution to more affordable alternatives.
Jewelry demand dipped 2% to 448.8 tons due to higher price levels as well as unfavorable economic conditions. China, Saudi Arabia, US and European markets saw declines. On the contrary, jewelry demand was strong in India, a major consumer of gold and accounted for 30% of global demand. Despite record high prices, demand was on the rise thanks to improving sentiment, stock building and positive price expectations.
Demand for gold in China, another major market, decreased 5% to 123.8 tons as consumers cut back spending given the slow economic growth. Demand in the U.S market was affected as customers are trending toward lower carat gold, particularly with the penetration of 10-carat and other alternative metals.
Mine production dipped 1% to 731.6 tons in the quarter. Mine workers' strike in South Africa, disappointing results for a number of operations, lower-than-expected growth at new or recovering mines affected production during the quarter. Recycling activity decreased 2% to 460.7 tons, bringing the total supply to 1,188.3 tons, down 2% year over year.
Gold prices in 2011 ranged from a low of $1,310 per ounce to a high of $1,895 per ounce, with an average gold price of $1,572 per ounce. The record gold price of $1,895 per ounce was attained in September, 33% higher than the 2010 peak of $1,421 per ounce in November.
In 2012, gold prices have has ranged from $1,540 per ounce to $1,791.75 per ounce, with an average of $1,669.03 per ounce. Gold prices had a solid run in the first three quarters of 2012. Continuing concerns about Europe's financial problems and China's reduced economic growth forecast led to the climb.
Furthermore, the announcement of a third round of quantitative easing led to a surge in gold prices. However, in the fourth quarter, prices fell from $1,776 per ounce to $1,657 per ounce, a 6.7% drop. Despite a weak fourth quarter gold stood at $1657.5 per ounce at 2012 end, up 8.3% and marked the 12th year of annual gains.
The official sector is expected to continue to be a net buyer of gold in 2013. However, high gold prices and economic uncertainties will likely keep a check on demand for jewelry. Demand in the technology sector will be dampened due to high prices and the shift toward lower cost substitutes.
A climb in gold prices has not always translated into increased revenues for all the gold miners, as they have to deal with increased cash costs and production issues. As prices for gold rise further, gold giants such as Barrick Gold ( ABX ) and Goldcorp ( GG ), being unhedged producers of gold, will enjoy significant leverage to gold prices.
The cost increases need to be controlled in order to rake in profits. On the other hand, gold producers like Newmont Mining ( NEM ) and Kinross Gold ( KGC ) are expected to suffer from lower ore grades that subdue production levels, increase mining costs and negate the benefits of rising gold prices.
Ironically, rising gold prices has not had the same effect on the share prices of the gold companies. Investors prefer alternative financial products that allow them to invest in gold rather than investment in gold companies per se. These companies may be entangled in labor issues, escalating cost and other risks.
Gold remains a coveted asset given its long-term supply and demand dynamics and influenced by macroeconomic factors. The value and wealth preservation attributes of gold continue to lure investors and consumers, and is considered a safe investment. Concerns regarding economic growth in developed countries have made gold an attractive and safe investment option.
Gold prices will continue its rally in 2013, driven by investment and buying of gold by the central banks as a reserve portfolio asset. Strength in Indian markets, which alone consumes nearly 45%−50% of the world's gold, should also provide support.
Furthermore, recovery in China could contribute to the rise in the prices of gold. The Eurozone debt crisis and the geopolitical risks in the Middle East will pose as important drivers for a sustained demand for gold as a safe haven.
Aluminum
The aluminum industry is highly cyclical, with prices subject to worldwide supply and demand.
Alcoa ( AA ), the world leader in the production of primary aluminum, kicked off the fourth quarter earnings season with a revenue decline of 1.5% due to lower realized metal price. On an adjusted basis, the company reported earnings per share of 6 cents reversing its year-ago loss of 18 cents per share earned in the year ago quarter. The company's midstream and downstream businesses delivered profits and its cost-cutting measures also supported the results.
Alcoa is optimistic for 2013 and expects global demand for aluminum to increase 7%, up from 6% growth in 2012. The company projects 9%-10% global growth in the aerospace sector this year. Its growth forecast for the other markets are -- automotive (1%-4%), commercial transportation (2%-7%), packaging (2%-3%), building and construction (4%-5%) and industrial gas turbine (3%-5%). Alcoa remains firm on the long-term prospects for aluminum and envisions global demand for aluminum to double by 2020.
Alcoa's positive long-term outlook notwithstanding, prices have been under pressure, prompting companies to cut back on production. Alcoa's results have suffered because of the decline in realized aluminum prices. BHP Billiton ( BHP ) and Rio Tinto ( RIO ) have either sold or halted development of aluminum projects following a decline in aluminum prices.
In 2012, BHP sold its 33.3% stake in the Guinea Alumina joint venture to its partners and also halted bauxite exploration at its Boffa-Santou-Houda site in Guinea. The company also abandoned plans to build a smelter in the Democratic Republic of Congo. Rio is set to divest 13 aluminum assets, including its Gove operations in Australia. Alcoa is looking to buy mines used in the manufacture of aluminium from BHP Billiton and Rio Tinto.
Alcoa is aggressively slashing costs and pursuing strategies to move down its cost curves in its upstream businesses. The company remains committed to achieving its target of moving down the cost curve 10 percentage points in smelting and 7 percentage points in refining by 2015. The company completed planned closure or curtailments of 531,000 metric tons, or 12% of its highest-cost system smelting capacity, to enhance its competitive position.
This trend will likely continue until aluminum prices recover. Energy prices and other input costs are expected to pose challenges for the aluminum industry, though oil prices have been on the downside lately. In addition to the curtailments, the company will step up activities to reduce the escalating cost of raw materials.
In the medium to long term, aluminum consumption is expected to improve on a global basis. The revival is palpable in the automotive and packaging industries, one of the key consumer markets. The automobile market is also becoming increasingly aluminum-intensive, benefiting from its recyclability and light-weight properties. The global push to improve fuel efficiency in vehicles is expected to more than double demand for aluminum in the auto industry by 2025.
Further, the surge in copper prices last year has triggered a switch among manufacturers to aluminum. Automobiles, air conditioners and industrial components manufacturers are now shifting their focus to the more economical metal. In response to the upsurge in automotive demand, Alcoa has invested $300 million in expansion projects at its Davenport, Iowa rolled products plant.
We expect aluminum demand to increase over the next three years, outstripping supply growth. As a result, the aluminum market is likely to witness deficits for a prolonged period. This provides a backdrop supportive of high alumina and aluminum prices. China and India are witnessing rapid industrialization.
The China stimulus plan will also work as positives for underlying aluminum demand. Leading aluminum producers such as Alcoa and Aluminum Corporation of China , or Chalco ( ACH ) should also benefit from the improving demand outlook.
Copper
Copper is a major industrial metal with its price strongly depending on the economic growth outlook. The metal's strong cyclical leverage accounts for its nickname "Dr. Copper."
The metal's popularity in industrial usage is due to its high ductility, malleability and thermal and electrical conductivity, along with its resistance to corrosion. In terms of consumption, copper holds the third place after iron and aluminum. Construction is the single largest market for copper, followed by electronics and electronic products, transportation, industrial machinery, and consumer and general products.
Copper prices witnessed record high levels from 2006 through most of 2008 as limited supplies, growing demand from China and other emerging economies led to the surge in copper prices and low level of inventories. In December 2008, copper prices dipped to a low of $1.26 per pound due to reduced consumption, turbulence in the U.S. financial markets and concerns about the global economy.
However, copper prices have since improved based on the strong demand from emerging markets and limited supply. In 2011, London Metal Exchange (LME) spot-copper prices ranged from $3.08 per pound to a record high of $4.60 per pound, with an average of $4.00 per pound.
In the first quarter of 2012, LME spot copper prices averaged $3.77 per pound. However, during the second quarter of 2012, LME spot copper prices averaged $3.57 per pound and dipped further to $3.50 in the third quarter. This drop reflected concerns regarding a slowdown in the Chinese economy, Europe's sovereign debt crisis, and a slowing U.S. economy.
During fourth-quarter 2012, LME spot copper prices averaged $3.59 per pound. Overall in 2012, LME spot copper prices averaged $3.61 per pound, a 10% drop from 2011.
The drop in price has hurt the results of copper producers like Freeport-McMoRan Copper & Gold ( FCX ) and Southern Copper ( SCCO ) and Newmont. Struggling with declining copper prices, Freeport has recently taken a major stride to venture into the U.S. energy space as part of the company's strategy to diversify from its bread-and-butter copper mining business. The company is set to buy Plains Exploration & Production ( PXP ) and McMoRan Exploration ( MMR ) for roughly $9 billion.
Freeport's copper business has been affected by the sluggish global economy. Demand from key end-markets, including construction materials and electronics, remains weak due to the overall economic softness. The buyouts are expected to provide new opportunities for the company.
Notwithstanding the current volatility in prices, we have a long-term bullish stance on copper, supported by its widespread use, limited supplies from existing mines and the absence of significant new development projects. Prices will be influenced by demand from China and emerging markets, economic activity in the U.S. and other industrialized countries, the timing of new supplies of copper and production levels of mines and copper smelters. Companies that have a high leverage to copper prices will benefit immensely from the potential demand for the metal in the developing markets.
Overall Industry Outlook
Cost inflation in the sector is expected to be a headwind for metal and mining companies over the next several years, driven by a number of factors viz. labor, energy, ore grades, currencies, supply constraints and taxes. Global economic uncertainties, softening commodity prices, higher input costs are increasing the pressure on company margins.
To combat this, mining and metals companies are reviewing their portfolios to identify underperforming assets and shut down or divest these high cost and non-core assets. Industry consolidation, automation technology, owner-operated mines and investment in energy assets are some of the steps that companies are taking to mitigate the impact of rising costs.
Growth in the emerging markets, particularly China and India, was a major driver of metals demand over the last few years. However, of late, demand in China has slowed down. China's recent $150 billion infrastructure stimulus has helped improve the sentiment somewhat and holds promise for the metals and mining industry going forward.
In the developed world, persistent recessionary conditions in Europe will have residual effects elsewhere. The U.S. Federal Reserve also appears to be actively engaged in sustaining the U.S economy's momentum, which will hopefully jumpstart growth once again.
This synchronized global economic slowdown is the biggest headwind for the metals space overall at present. That said, the long-term picture remains a lot more promising as the emerging market economies are expected to get back in shape with the help of expected fiscal and monetary stimuli.
ALCOA INC (AA): Free Stock Analysis Report
BARRICK GOLD CP (ABX): Free Stock Analysis Report
ALUMINUM CP-ADR (ACH): Free Stock Analysis Report
AK STEEL HLDG (AKS): Free Stock Analysis Report
BHP BILLITN LTD (BHP): Free Stock Analysis Report
FREEPT MC COP-B (FCX): Free Stock Analysis Report
GOLDCORP INC (GG): Free Stock Analysis Report
KINROSS GOLD (KGC): Free Stock Analysis Report
MILLENNIAL MEDA (MM): Free Stock Analysis Report
ARCELOR MITTAL (MT): Free Stock Analysis Report
NEWMONT MINING (NEM): Free Stock Analysis Report
(NSSMY): ETF Research Reports
NUCOR CORP (NUE): Free Stock Analysis Report
PLAINS EXPL&PRD (PXP): Free Stock Analysis Report
RIO TINTO-ADR (RIO): Free Stock Analysis Report
SOUTHERN COPPER (SCCO): Free Stock Analysis Report
UTD STATES STL (X): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alcoa ( AA ), the world leader in the production of primary aluminum, kicked off the fourth quarter earnings season with a revenue decline of 1.5% due to lower realized metal price. The seasonally adjusted annual rate (SAAR) in December was 15.4 million vehicles, the second straight month of above 15 million SAAR in 2012. ALCOA INC (AA): Free Stock Analysis Report BARRICK GOLD CP (ABX): Free Stock Analysis Report ALUMINUM CP-ADR (ACH): Free Stock Analysis Report AK STEEL HLDG (AKS): Free Stock Analysis Report BHP BILLITN LTD (BHP): Free Stock Analysis Report FREEPT MC COP-B (FCX): Free Stock Analysis Report GOLDCORP INC (GG): Free Stock Analysis Report KINROSS GOLD (KGC): Free Stock Analysis Report MILLENNIAL MEDA (MM): Free Stock Analysis Report ARCELOR MITTAL (MT): Free Stock Analysis Report NEWMONT MINING (NEM): Free Stock Analysis Report (NSSMY): ETF Research Reports NUCOR CORP (NUE): Free Stock Analysis Report PLAINS EXPL&PRD (PXP): Free Stock Analysis Report RIO TINTO-ADR (RIO): Free Stock Analysis Report SOUTHERN COPPER (SCCO): Free Stock Analysis Report UTD STATES STL (X): Free Stock Analysis Report To read this article on Zacks.com click here.
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ALCOA INC (AA): Free Stock Analysis Report BARRICK GOLD CP (ABX): Free Stock Analysis Report ALUMINUM CP-ADR (ACH): Free Stock Analysis Report AK STEEL HLDG (AKS): Free Stock Analysis Report BHP BILLITN LTD (BHP): Free Stock Analysis Report FREEPT MC COP-B (FCX): Free Stock Analysis Report GOLDCORP INC (GG): Free Stock Analysis Report KINROSS GOLD (KGC): Free Stock Analysis Report MILLENNIAL MEDA (MM): Free Stock Analysis Report ARCELOR MITTAL (MT): Free Stock Analysis Report NEWMONT MINING (NEM): Free Stock Analysis Report (NSSMY): ETF Research Reports NUCOR CORP (NUE): Free Stock Analysis Report PLAINS EXPL&PRD (PXP): Free Stock Analysis Report RIO TINTO-ADR (RIO): Free Stock Analysis Report SOUTHERN COPPER (SCCO): Free Stock Analysis Report UTD STATES STL (X): Free Stock Analysis Report To read this article on Zacks.com click here. The seasonally adjusted annual rate (SAAR) in December was 15.4 million vehicles, the second straight month of above 15 million SAAR in 2012. Alcoa ( AA ), the world leader in the production of primary aluminum, kicked off the fourth quarter earnings season with a revenue decline of 1.5% due to lower realized metal price.
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ALCOA INC (AA): Free Stock Analysis Report BARRICK GOLD CP (ABX): Free Stock Analysis Report ALUMINUM CP-ADR (ACH): Free Stock Analysis Report AK STEEL HLDG (AKS): Free Stock Analysis Report BHP BILLITN LTD (BHP): Free Stock Analysis Report FREEPT MC COP-B (FCX): Free Stock Analysis Report GOLDCORP INC (GG): Free Stock Analysis Report KINROSS GOLD (KGC): Free Stock Analysis Report MILLENNIAL MEDA (MM): Free Stock Analysis Report ARCELOR MITTAL (MT): Free Stock Analysis Report NEWMONT MINING (NEM): Free Stock Analysis Report (NSSMY): ETF Research Reports NUCOR CORP (NUE): Free Stock Analysis Report PLAINS EXPL&PRD (PXP): Free Stock Analysis Report RIO TINTO-ADR (RIO): Free Stock Analysis Report SOUTHERN COPPER (SCCO): Free Stock Analysis Report UTD STATES STL (X): Free Stock Analysis Report To read this article on Zacks.com click here. The seasonally adjusted annual rate (SAAR) in December was 15.4 million vehicles, the second straight month of above 15 million SAAR in 2012. Alcoa ( AA ), the world leader in the production of primary aluminum, kicked off the fourth quarter earnings season with a revenue decline of 1.5% due to lower realized metal price.
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The seasonally adjusted annual rate (SAAR) in December was 15.4 million vehicles, the second straight month of above 15 million SAAR in 2012. Alcoa ( AA ), the world leader in the production of primary aluminum, kicked off the fourth quarter earnings season with a revenue decline of 1.5% due to lower realized metal price. ALCOA INC (AA): Free Stock Analysis Report BARRICK GOLD CP (ABX): Free Stock Analysis Report ALUMINUM CP-ADR (ACH): Free Stock Analysis Report AK STEEL HLDG (AKS): Free Stock Analysis Report BHP BILLITN LTD (BHP): Free Stock Analysis Report FREEPT MC COP-B (FCX): Free Stock Analysis Report GOLDCORP INC (GG): Free Stock Analysis Report KINROSS GOLD (KGC): Free Stock Analysis Report MILLENNIAL MEDA (MM): Free Stock Analysis Report ARCELOR MITTAL (MT): Free Stock Analysis Report NEWMONT MINING (NEM): Free Stock Analysis Report (NSSMY): ETF Research Reports NUCOR CORP (NUE): Free Stock Analysis Report PLAINS EXPL&PRD (PXP): Free Stock Analysis Report RIO TINTO-ADR (RIO): Free Stock Analysis Report SOUTHERN COPPER (SCCO): Free Stock Analysis Report UTD STATES STL (X): Free Stock Analysis Report To read this article on Zacks.com click here.
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2013-02-14 00:00:00 UTC
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Metals & Mining Stock Outlook - Feb 2013 - Industry Outlook
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https://www.nasdaq.com/articles/metals-mining-stock-outlook-feb-2013-industry-outlook-2013-02-14-0
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A Brief Overview
The Metals & Mining industry broadly refers to metals and minerals extraction (mining) and the primary and secondary processing of these metals and minerals. The industry is oligarchic in structure, with a few producers accounting for a lion's share of the output.
With respect to volume, iron and steel commands a majority in the global metal industry, followed by aluminum. The iron and steel industry includes metal ore exploration and mining services as well as iron and steel foundries for smelting, rolling, forging, spinning, recycling, stamping, polishing and plating of iron and steel products.
The precious metal and minerals industry comprise companies engaged in the extraction and primary processing of gold, silver, platinum, diamond, semi-precious stones, uranium and other rare minerals and ores as well as cultivation of pearls.
The industry is highly cyclical and competitive. Historically, it has suffered from oversupply (excess of supply over demand). Metal producers are subject to cyclical fluctuations in prices, general economic conditions and end-user markets. The tepid global economic growth outlook has emerged as a major headwind for the global metal industry. Notwithstanding these near-term challenges, the group's long-term dynamics appear attractive.
Within the Zacks Industry classification, the industry is broadly grouped in the Basic Materials sector (one of 16 Zacks sectors) and is further sub-divided into three industries at the expanded level: Mining - Gold, Mining - Iron and Mining - Non-Ferrous. All the industries within the Basic Materials sector like chemicals, paper, steel and mining are economically sensitive, but the level of sensitivity and exposure to different stages of the economic cycle vary for each industry.
We rank all of the more than 250 industries in the 16 Zacks sectors based on the earnings outlook for the constituent companies in each industry. This ranking is available in the Zacks Industry Rank http://www.zacks.com/rank/industry.php.
The way to look at the complete list of Zacks Industry Rank for the 250+ companies is that the outlook for the top one-third of the list (Zacks Industry Rank of #85 and lower) is positive, while the outlook for the bottom one-third (Zacks Industry Rank #170 and higher) is negative.
For the Mining Industry, Iron Mining barely makes into the top 1/3rd with its Zacks Industry Rank #77, while the Non-Ferrous (aluminum, copper, etc.) and Gold Mining industries are barely in the bottom 1/3rd at Zacks Industry Rank of #187 and #182, respectively. The exact location of the three mining industries on the Zacks Industry Rank aside, one could safely say that the near-term outlook for the group is leaning towards a Neutral outlook.
A Detailed Look into Metals: Performance and Outlook
Steel
The steel industry has steadily recovered from the impact of the global economic downturn, which slashed crude steel production by 9% in 2009. According to the World Steel Association, world crude steel production was a record 1,548 Mt in 2012, outperforming the record set in 2011 by 1.2%. Significant growth in Asia and North America were instrumental for the annual upside, marred somewhat by declines in Europe and South America.
During 2012, production in Asia improved 2.7% to 1,012 Mt. China emerged as the leading steel producing country once again, up 3.1% year over year and yielding almost 46% of the global output. Production in Japan, the second largest producer, remained flat year over year. The United States held the third position, producing 88.6 Mt of crude steel, up 2.5% annually and accounting for 6% of the total global output. Production in Europe and South America were a dampener, declining 2.7% and 3.1%, respectively.
Let's have a look at the performance and outlook of the end markets for the industry:
The automotive and construction markets have historically been the largest consumers of steel. The automotive sector has been promising in recent times. Auto sales in the U.S. surged 13% to 14.5 million vehicles in Dec 2012, the highest volume attained in the last five years. The seasonally adjusted annual rate (SAAR) in December was 15.4 million vehicles, the second straight month of above 15 million SAAR in 2012. This performance will likely generate solid momentum going into 2013.
The robust growth rate in the sector has been fueled by strong pent-up demand, cheap financing, launch of several redesigned and fuel-efficient vehicles and rebound in consumer confidence thanks to a growing belief that the housing market is recovering.
Another major market, the construction sector, has so far been a drag on the steel companies' earnings. However, in 2012, the sector finally started picking up began signaling a recovery evidenced by solid growth in the major indicators.
The architecture billing index (ABI), an economic indicator that provides an approximate nine- to twelve-month glimpse into the future of non-residential construction spending activity, climbed back into the positive territory with a score of 50.2 in August after languishing in the negative territory for five consecutive months. Any score above 50 indicates an increase in billings and the score has remained stable till December.
The ABI readings in the fourth quarter of 2012, in fact, exhibited the strongest growth since the downturn in early 2008. This momentum is expected to persist and conditions are expected improve, albeit at a slow and steady rate.
The American Institute of Architects projects a 5% increase in spending in 2013 for non-residential construction projects, on the back of higher construction of commercial facilities, particularly for hotels followed by industrial construction spending. The spending is expected to shore up to 7.2% in 2014.
Meanwhile, the residential housing sector is also showing signs of positive growth with figures at highest levels in more than four years. In 2012, housing starts totaled 780,000, surging 28% from 2011 and housing permits (an indicator of future demand) escalated 30% to 813,000. Both attained their respective highest level since 2008. Housing completions rose 11% to 651,000 in 2012, the highest level since 2010.
According to the most recent most issued data, in December housing starts spiked 37% year over year to a seasonally adjusted annual rate of 954,000. Building permits were at a seasonally adjusted annual rate of 903,000, 29% higher than the year-ago figure.
In a nutshell, record-low mortgage rates, rising rents and reduced prices of properties are luring buyers. These figures reinforce the belief that U.S. residential construction is finally stabilizing and is on the road to a much awaited recovery.
Analyzing the fourth quarter results of the major steel companies in our coverage -- ArcelorMittal ( MT ), United States Steel ( X ), Nucor ( NUE ) and AK Steel ( AKS ) -- we see revenues were marred by the drop in average steel prices. This does not come as a surprise as oversupply in the U.S. steel industry and increased steel imports in the domestic market affected steel prices, which in turn hurt margins and profits of the steel players. Furthermore, the gloomy macroeconomic condition in Europe is another area of concern as it is the largest market for total U.S. exports.
Given the scenario in Europe, ArcelorMittal, the world's largest steelmaker in terms of volume and Europe's largest steelmaker, recently announced its plans to permanently close its plant in Liege, Belgium owing to the slack demand and weakening European economy. The company also announced the idling of its liquid phase in Oct 2011 due to structural over-capacity in Northern Europe. The production halt at the Liege plant was done to better focus on the company's downstream activities, operating five core lines and seven flexible lines.
However, economic conditions worsened since then and demand for steel in Europe declined another 8%-9% in 2012 and is currently 29% below the pre-crisis levels. The Leige business is heavily dependent on the automotive sector, which faced a major downturn in 2012. Consequently, tepid demand also had a hand in idling of the facility and ArcelorMittal further stated that it will close six production lines at Liege that manufacture finished steel products for the auto industry. It is also closing a coke plant, which produces fuel for blast furnaces.
Going into 2013, steelmakers expect profits to be affected by continued increase in steel imports, volatility in steel pricing along with macroeconomic uncertainty stemming from the recessionary conditions in Europe and sluggish growth in the emerging markets.
However, the sector will benefit from the strong momentum in the automotive markets. The outlook for other key markets -- transportation, energy, industrial and agricultural sectors also remains favorable. The turnaround in the so-far faltering construction sector will definitely provide a much-needed impetus to the sector.
Steelmakers are increasing their consolidation efforts, particularly in China and India, to derive economies of scale and other synergies to remain competitive. A major development in this sector was the recent merger of Japan's largest and the world's sixth-largest steel maker Nippon Steel Corporation with Sumitomo Metal Industries to form the world's second biggest steel firm -- Nippon Steel & Sumitomo Metal Corporation ( NSSMY ). With a combined capacity of 46.1 million tons, it has replaced China's Hebei Group in the second position, with production of 44.4 million tons. The merger is targeted to generate savings in the face of increasingly intense global competition.
China's recent attempt to bolster its economy by approving 60 infrastructure projects worth more than $150 billion will help bolster the steel sector. Prices could potentially stabilize on the back of a rebound in construction activity in the developing countries, in particular China, India and South Korea. Furthermore, the sector will reap the benefits of the Federal Reserve's move to boost the U.S economy. However, the European debt crisis and its potential global impact remain headwinds for the industry.
Gold
As per the World Gold Council, 2011 was a milestone year for gold as global demand for the yellow metal scaled up 0.4% to 4,067.1 tons at an estimated value of $205.5 billion -- the highest tonnage level with a value exceeding $200 billion since 1997. The increase was mainly driven by the investment sector, particularly in India, China and Europe.
As per the most recent data available, gold demand stood at 1084.6 tons in third quarter 2012, down 11% from the historic high level in the third quarter of 2011. Strong ETF inflow and higher demand from central banks was offset by declines in demand for jewelry, investment and in the technology sectors due to higher prices. Almost 68% of the decline stemmed from a steep drop in the bar and coin segment.
In absolute terms, gold demand in the quarter was valued at $57.6 billion, down 14% from the third quarter of fiscal 2011. Average gold price in the quarter stood at $1,652, down 3% year over year.
Central banks remained the primary purchasers of gold, accounting for around 9% of total gold demand at 97.6 tons. Investment demand declined 16%, mainly due to a drop in bar and coin investment. Gold demand in the technology sector was 108.2 tons, a 6% annual decline due to higher gold prices, weak consumer demand, uncertainty in Europe and substitution to more affordable alternatives.
Jewelry demand dipped 2% to 448.8 tons due to higher price levels as well as unfavorable economic conditions. China, Saudi Arabia, US and European markets saw declines. On the contrary, jewelry demand was strong in India, a major consumer of gold and accounted for 30% of global demand. Despite record high prices, demand was on the rise thanks to improving sentiment, stock building and positive price expectations.
Demand for gold in China, another major market, decreased 5% to 123.8 tons as consumers cut back spending given the slow economic growth. Demand in the U.S market was affected as customers are trending toward lower carat gold, particularly with the penetration of 10-carat and other alternative metals.
Mine production dipped 1% to 731.6 tons in the quarter. Mine workers' strike in South Africa, disappointing results for a number of operations, lower-than-expected growth at new or recovering mines affected production during the quarter. Recycling activity decreased 2% to 460.7 tons, bringing the total supply to 1,188.3 tons, down 2% year over year.
Gold prices in 2011 ranged from a low of $1,310 per ounce to a high of $1,895 per ounce, with an average gold price of $1,572 per ounce. The record gold price of $1,895 per ounce was attained in September, 33% higher than the 2010 peak of $1,421 per ounce in November.
In 2012, gold prices have has ranged from $1,540 per ounce to $1,791.75 per ounce, with an average of $1,669.03 per ounce. Gold prices had a solid run in the first three quarters of 2012. Continuing concerns about Europe's financial problems and China's reduced economic growth forecast led to the climb.
Furthermore, the announcement of a third round of quantitative easing led to a surge in gold prices. However, in the fourth quarter, prices fell from $1,776 per ounce to $1,657 per ounce, a 6.7% drop. Despite a weak fourth quarter gold stood at $1657.5 per ounce at 2012 end, up 8.3% and marked the 12th year of annual gains.
The official sector is expected to continue to be a net buyer of gold in 2013. However, high gold prices and economic uncertainties will likely keep a check on demand for jewelry. Demand in the technology sector will be dampened due to high prices and the shift toward lower cost substitutes.
A climb in gold prices has not always translated into increased revenues for all the gold miners, as they have to deal with increased cash costs and production issues. As prices for gold rise further, gold giants such as Barrick Gold ( ABX ) and Goldcorp ( GG ), being unhedged producers of gold, will enjoy significant leverage to gold prices.
The cost increases need to be controlled in order to rake in profits. On the other hand, gold producers like Newmont Mining ( NEM ) and Kinross Gold ( KGC ) are expected to suffer from lower ore grades that subdue production levels, increase mining costs and negate the benefits of rising gold prices.
Ironically, rising gold prices has not had the same effect on the share prices of the gold companies. Investors prefer alternative financial products that allow them to invest in gold rather than investment in gold companies per se. These companies may be entangled in labor issues, escalating cost and other risks.
Gold remains a coveted asset given its long-term supply and demand dynamics and influenced by macroeconomic factors. The value and wealth preservation attributes of gold continue to lure investors and consumers, and is considered a safe investment. Concerns regarding economic growth in developed countries have made gold an attractive and safe investment option.
Gold prices will continue its rally in 2013, driven by investment and buying of gold by the central banks as a reserve portfolio asset. Strength in Indian markets, which alone consumes nearly 45%−50% of the world's gold, should also provide support.
Furthermore, recovery in China could contribute to the rise in the prices of gold. The Eurozone debt crisis and the geopolitical risks in the Middle East will pose as important drivers for a sustained demand for gold as a safe haven.
Aluminum
The aluminum industry is highly cyclical, with prices subject to worldwide supply and demand.
Alcoa ( AA ), the world leader in the production of primary aluminum, kicked off the fourth quarter earnings season with a revenue decline of 1.5% due to lower realized metal price. On an adjusted basis, the company reported earnings per share of 6 cents reversing its year-ago loss of 18 cents per share earned in the year ago quarter. The company's midstream and downstream businesses delivered profits and its cost-cutting measures also supported the results.
Alcoa is optimistic for 2013 and expects global demand for aluminum to increase 7%, up from 6% growth in 2012. The company projects 9%-10% global growth in the aerospace sector this year. Its growth forecast for the other markets are -- automotive (1%-4%), commercial transportation (2%-7%), packaging (2%-3%), building and construction (4%-5%) and industrial gas turbine (3%-5%). Alcoa remains firm on the long-term prospects for aluminum and envisions global demand for aluminum to double by 2020.
Alcoa's positive long-term outlook notwithstanding, prices have been under pressure, prompting companies to cut back on production. Alcoa's results have suffered because of the decline in realized aluminum prices. BHP Billiton ( BHP ) and Rio Tinto ( RIO ) have either sold or halted development of aluminum projects following a decline in aluminum prices.
In 2012, BHP sold its 33.3% stake in the Guinea Alumina joint venture to its partners and also halted bauxite exploration at its Boffa-Santou-Houda site in Guinea. The company also abandoned plans to build a smelter in the Democratic Republic of Congo. Rio is set to divest 13 aluminum assets, including its Gove operations in Australia. Alcoa is looking to buy mines used in the manufacture of aluminium from BHP Billiton and Rio Tinto.
Alcoa is aggressively slashing costs and pursuing strategies to move down its cost curves in its upstream businesses. The company remains committed to achieving its target of moving down the cost curve 10 percentage points in smelting and 7 percentage points in refining by 2015. The company completed planned closure or curtailments of 531,000 metric tons, or 12% of its highest-cost system smelting capacity, to enhance its competitive position.
This trend will likely continue until aluminum prices recover. Energy prices and other input costs are expected to pose challenges for the aluminum industry, though oil prices have been on the downside lately. In addition to the curtailments, the company will step up activities to reduce the escalating cost of raw materials.
In the medium to long term, aluminum consumption is expected to improve on a global basis. The revival is palpable in the automotive and packaging industries, one of the key consumer markets. The automobile market is also becoming increasingly aluminum-intensive, benefiting from its recyclability and light-weight properties. The global push to improve fuel efficiency in vehicles is expected to more than double demand for aluminum in the auto industry by 2025.
Further, the surge in copper prices last year has triggered a switch among manufacturers to aluminum. Automobiles, air conditioners and industrial components manufacturers are now shifting their focus to the more economical metal. In response to the upsurge in automotive demand, Alcoa has invested $300 million in expansion projects at its Davenport, Iowa rolled products plant.
We expect aluminum demand to increase over the next three years, outstripping supply growth. As a result, the aluminum market is likely to witness deficits for a prolonged period. This provides a backdrop supportive of high alumina and aluminum prices. China and India are witnessing rapid industrialization.
The China stimulus plan will also work as positives for underlying aluminum demand. Leading aluminum producers such as Alcoa and Aluminum Corporation of China , or Chalco ( ACH ) should also benefit from the improving demand outlook.
Copper
Copper is a major industrial metal with its price strongly depending on the economic growth outlook. The metal's strong cyclical leverage accounts for its nickname "Dr. Copper."
The metal's popularity in industrial usage is due to its high ductility, malleability and thermal and electrical conductivity, along with its resistance to corrosion. In terms of consumption, copper holds the third place after iron and aluminum. Construction is the single largest market for copper, followed by electronics and electronic products, transportation, industrial machinery, and consumer and general products.
Copper prices witnessed record high levels from 2006 through most of 2008 as limited supplies, growing demand from China and other emerging economies led to the surge in copper prices and low level of inventories. In December 2008, copper prices dipped to a low of $1.26 per pound due to reduced consumption, turbulence in the U.S. financial markets and concerns about the global economy.
However, copper prices have since improved based on the strong demand from emerging markets and limited supply. In 2011, London Metal Exchange (LME) spot-copper prices ranged from $3.08 per pound to a record high of $4.60 per pound, with an average of $4.00 per pound.
In the first quarter of 2012, LME spot copper prices averaged $3.77 per pound. However, during the second quarter of 2012, LME spot copper prices averaged $3.57 per pound and dipped further to $3.50 in the third quarter. This drop reflected concerns regarding a slowdown in the Chinese economy, Europe's sovereign debt crisis, and a slowing U.S. economy.
During fourth-quarter 2012, LME spot copper prices averaged $3.59 per pound. Overall in 2012, LME spot copper prices averaged $3.61 per pound, a 10% drop from 2011.
The drop in price has hurt the results of copper producers like Freeport-McMoRan Copper & Gold ( FCX ) and Southern Copper ( SCCO ) and Newmont. Struggling with declining copper prices, Freeport has recently taken a major stride to venture into the U.S. energy space as part of the company's strategy to diversify from its bread-and-butter copper mining business. The company is set to buy Plains Exploration & Production ( PXP ) and McMoRan Exploration ( MMR ) for roughly $9 billion.
Freeport's copper business has been affected by the sluggish global economy. Demand from key end-markets, including construction materials and electronics, remains weak due to the overall economic softness. The buyouts are expected to provide new opportunities for the company.
Notwithstanding the current volatility in prices, we have a long-term bullish stance on copper, supported by its widespread use, limited supplies from existing mines and the absence of significant new development projects. Prices will be influenced by demand from China and emerging markets, economic activity in the U.S. and other industrialized countries, the timing of new supplies of copper and production levels of mines and copper smelters. Companies that have a high leverage to copper prices will benefit immensely from the potential demand for the metal in the developing markets.
Overall Industry Outlook
Cost inflation in the sector is expected to be a headwind for metal and mining companies over the next several years, driven by a number of factors viz. labor, energy, ore grades, currencies, supply constraints and taxes. Global economic uncertainties, softening commodity prices, higher input costs are increasing the pressure on company margins.
To combat this, mining and metals companies are reviewing their portfolios to identify underperforming assets and shut down or divest these high cost and non-core assets. Industry consolidation, automation technology, owner-operated mines and investment in energy assets are some of the steps that companies are taking to mitigate the impact of rising costs.
Growth in the emerging markets, particularly China and India, was a major driver of metals demand over the last few years. However, of late, demand in China has slowed down. China's recent $150 billion infrastructure stimulus has helped improve the sentiment somewhat and holds promise for the metals and mining industry going forward.
In the developed world, persistent recessionary conditions in Europe will have residual effects elsewhere. The U.S. Federal Reserve also appears to be actively engaged in sustaining the U.S economy's momentum, which will hopefully jumpstart growth once again.
This synchronized global economic slowdown is the biggest headwind for the metals space overall at present. That said, the long-term picture remains a lot more promising as the emerging market economies are expected to get back in shape with the help of expected fiscal and monetary stimuli.
ALCOA INC (AA): Free Stock Analysis Report
BARRICK GOLD CP (ABX): Free Stock Analysis Report
ALUMINUM CP-ADR (ACH): Free Stock Analysis Report
AK STEEL HLDG (AKS): Free Stock Analysis Report
BHP BILLITN LTD (BHP): Free Stock Analysis Report
FREEPT MC COP-B (FCX): Free Stock Analysis Report
GOLDCORP INC (GG): Free Stock Analysis Report
KINROSS GOLD (KGC): Free Stock Analysis Report
MILLENNIAL MEDA (MM): Free Stock Analysis Report
ARCELOR MITTAL (MT): Free Stock Analysis Report
NEWMONT MINING (NEM): Free Stock Analysis Report
NIPPON STEEL CP (NSSMY): Get Free Report
NUCOR CORP (NUE): Free Stock Analysis Report
PLAINS EXPL&PRD (PXP): Free Stock Analysis Report
RIO TINTO-ADR (RIO): Free Stock Analysis Report
SOUTHERN COPPER (SCCO): Free Stock Analysis Report
UTD STATES STL (X): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alcoa ( AA ), the world leader in the production of primary aluminum, kicked off the fourth quarter earnings season with a revenue decline of 1.5% due to lower realized metal price. The seasonally adjusted annual rate (SAAR) in December was 15.4 million vehicles, the second straight month of above 15 million SAAR in 2012. ALCOA INC (AA): Free Stock Analysis Report BARRICK GOLD CP (ABX): Free Stock Analysis Report ALUMINUM CP-ADR (ACH): Free Stock Analysis Report AK STEEL HLDG (AKS): Free Stock Analysis Report BHP BILLITN LTD (BHP): Free Stock Analysis Report FREEPT MC COP-B (FCX): Free Stock Analysis Report GOLDCORP INC (GG): Free Stock Analysis Report KINROSS GOLD (KGC): Free Stock Analysis Report MILLENNIAL MEDA (MM): Free Stock Analysis Report ARCELOR MITTAL (MT): Free Stock Analysis Report NEWMONT MINING (NEM): Free Stock Analysis Report NIPPON STEEL CP (NSSMY): Get Free Report NUCOR CORP (NUE): Free Stock Analysis Report PLAINS EXPL&PRD (PXP): Free Stock Analysis Report RIO TINTO-ADR (RIO): Free Stock Analysis Report SOUTHERN COPPER (SCCO): Free Stock Analysis Report UTD STATES STL (X): Free Stock Analysis Report To read this article on Zacks.com click here.
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ALCOA INC (AA): Free Stock Analysis Report BARRICK GOLD CP (ABX): Free Stock Analysis Report ALUMINUM CP-ADR (ACH): Free Stock Analysis Report AK STEEL HLDG (AKS): Free Stock Analysis Report BHP BILLITN LTD (BHP): Free Stock Analysis Report FREEPT MC COP-B (FCX): Free Stock Analysis Report GOLDCORP INC (GG): Free Stock Analysis Report KINROSS GOLD (KGC): Free Stock Analysis Report MILLENNIAL MEDA (MM): Free Stock Analysis Report ARCELOR MITTAL (MT): Free Stock Analysis Report NEWMONT MINING (NEM): Free Stock Analysis Report NIPPON STEEL CP (NSSMY): Get Free Report NUCOR CORP (NUE): Free Stock Analysis Report PLAINS EXPL&PRD (PXP): Free Stock Analysis Report RIO TINTO-ADR (RIO): Free Stock Analysis Report SOUTHERN COPPER (SCCO): Free Stock Analysis Report UTD STATES STL (X): Free Stock Analysis Report To read this article on Zacks.com click here. The seasonally adjusted annual rate (SAAR) in December was 15.4 million vehicles, the second straight month of above 15 million SAAR in 2012. Alcoa ( AA ), the world leader in the production of primary aluminum, kicked off the fourth quarter earnings season with a revenue decline of 1.5% due to lower realized metal price.
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ALCOA INC (AA): Free Stock Analysis Report BARRICK GOLD CP (ABX): Free Stock Analysis Report ALUMINUM CP-ADR (ACH): Free Stock Analysis Report AK STEEL HLDG (AKS): Free Stock Analysis Report BHP BILLITN LTD (BHP): Free Stock Analysis Report FREEPT MC COP-B (FCX): Free Stock Analysis Report GOLDCORP INC (GG): Free Stock Analysis Report KINROSS GOLD (KGC): Free Stock Analysis Report MILLENNIAL MEDA (MM): Free Stock Analysis Report ARCELOR MITTAL (MT): Free Stock Analysis Report NEWMONT MINING (NEM): Free Stock Analysis Report NIPPON STEEL CP (NSSMY): Get Free Report NUCOR CORP (NUE): Free Stock Analysis Report PLAINS EXPL&PRD (PXP): Free Stock Analysis Report RIO TINTO-ADR (RIO): Free Stock Analysis Report SOUTHERN COPPER (SCCO): Free Stock Analysis Report UTD STATES STL (X): Free Stock Analysis Report To read this article on Zacks.com click here. The seasonally adjusted annual rate (SAAR) in December was 15.4 million vehicles, the second straight month of above 15 million SAAR in 2012. Alcoa ( AA ), the world leader in the production of primary aluminum, kicked off the fourth quarter earnings season with a revenue decline of 1.5% due to lower realized metal price.
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The seasonally adjusted annual rate (SAAR) in December was 15.4 million vehicles, the second straight month of above 15 million SAAR in 2012. Alcoa ( AA ), the world leader in the production of primary aluminum, kicked off the fourth quarter earnings season with a revenue decline of 1.5% due to lower realized metal price. ALCOA INC (AA): Free Stock Analysis Report BARRICK GOLD CP (ABX): Free Stock Analysis Report ALUMINUM CP-ADR (ACH): Free Stock Analysis Report AK STEEL HLDG (AKS): Free Stock Analysis Report BHP BILLITN LTD (BHP): Free Stock Analysis Report FREEPT MC COP-B (FCX): Free Stock Analysis Report GOLDCORP INC (GG): Free Stock Analysis Report KINROSS GOLD (KGC): Free Stock Analysis Report MILLENNIAL MEDA (MM): Free Stock Analysis Report ARCELOR MITTAL (MT): Free Stock Analysis Report NEWMONT MINING (NEM): Free Stock Analysis Report NIPPON STEEL CP (NSSMY): Get Free Report NUCOR CORP (NUE): Free Stock Analysis Report PLAINS EXPL&PRD (PXP): Free Stock Analysis Report RIO TINTO-ADR (RIO): Free Stock Analysis Report SOUTHERN COPPER (SCCO): Free Stock Analysis Report UTD STATES STL (X): Free Stock Analysis Report To read this article on Zacks.com click here.
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2013-02-14 00:00:00 UTC
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Metals & Mining Stock Outlook - Feb 2013 - Zacks Analyst Interviews
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https://www.nasdaq.com/articles/metals-mining-stock-outlook-feb-2013-zacks-analyst-interviews-2013-02-14
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A Brief Overview
The Metals & Mining industry broadly refers to metals and minerals extraction (mining) and the primary and secondary processing of these metals and minerals. The industry is oligarchic in structure, with a few producers accounting for a lion's share of the output.
With respect to volume, iron and steel commands a majority in the global metal industry, followed by aluminum. The iron and steel industry includes metal ore exploration and mining services as well as iron and steel foundries for smelting, rolling, forging, spinning, recycling, stamping, polishing and plating of iron and steel products.
The precious metal and minerals industry comprise companies engaged in the extraction and primary processing of gold, silver, platinum, diamond, semi-precious stones, uranium and other rare minerals and ores as well as cultivation of pearls.
The industry is highly cyclical and competitive. Historically, it has suffered from oversupply (excess of supply over demand). Metal producers are subject to cyclical fluctuations in prices, general economic conditions and end-user markets. The tepid global economic growth outlook has emerged as a major headwind for the global metal industry. Notwithstanding these near-term challenges, the group's long-term dynamics appear attractive.
Within the Zacks Industry classification, the industry is broadly grouped in the Basic Materials sector (one of 16 Zacks sectors) and is further sub-divided into three industries at the expanded level: Mining - Gold, Mining - Iron and Mining - Non-Ferrous. All the industries within the Basic Materials sector like chemicals, paper, steel and mining are economically sensitive, but the level of sensitivity and exposure to different stages of the economic cycle vary for each industry.
We rank all of the more than 250 industries in the 16 Zacks sectors based on the earnings outlook for the constituent companies in each industry. This ranking is available in the Zacks Industry Rank http://www.zacks.com/rank/industry.php.
The way to look at the complete list of Zacks Industry Rank for the 250+ companies is that the outlook for the top one-third of the list (Zacks Industry Rank of #85 and lower) is positive, while the outlook for the bottom one-third (Zacks Industry Rank #170 and higher) is negative.
For the Mining Industry, Iron Mining barely makes into the top 1/3rd with its Zacks Industry Rank #77, while the Non-Ferrous (aluminum, copper, etc.) and Gold Mining industries are barely in the bottom 1/3rd at Zacks Industry Rank of #187 and #182, respectively. The exact location of the three mining industries on the Zacks Industry Rank aside, one could safely say that the near-term outlook for the group is leaning towards a Neutral outlook.
A Detailed Look into Metals: Performance and Outlook
Steel
The steel industry has steadily recovered from the impact of the global economic downturn, which slashed crude steel production by 9% in 2009. According to the World Steel Association, world crude steel production was a record 1,548 Mt in 2012, outperforming the record set in 2011 by 1.2%. Significant growth in Asia and North America were instrumental for the annual upside, marred somewhat by declines in Europe and South America.
During 2012, production in Asia improved 2.7% to 1,012 Mt. China emerged as the leading steel producing country once again, up 3.1% year over year and yielding almost 46% of the global output. Production in Japan, the second largest producer, remained flat year over year. The United States held the third position, producing 88.6 Mt of crude steel, up 2.5% annually and accounting for 6% of the total global output. Production in Europe and South America were a dampener, declining 2.7% and 3.1%, respectively.
Let's have a look at the performance and outlook of the end markets for the industry:
The automotive and construction markets have historically been the largest consumers of steel. The automotive sector has been promising in recent times. Auto sales in the U.S. surged 13% to 14.5 million vehicles in Dec 2012, the highest volume attained in the last five years. The seasonally adjusted annual rate (SAAR) in December was 15.4 million vehicles, the second straight month of above 15 million SAAR in 2012. This performance will likely generate solid momentum going into 2013.
The robust growth rate in the sector has been fueled by strong pent-up demand, cheap financing, launch of several redesigned and fuel-efficient vehicles and rebound in consumer confidence thanks to a growing belief that the housing market is recovering.
Another major market, the construction sector, has so far been a drag on the steel companies' earnings. However, in 2012, the sector finally started picking up began signaling a recovery evidenced by solid growth in the major indicators.
The architecture billing index (ABI), an economic indicator that provides an approximate nine- to twelve-month glimpse into the future of non-residential construction spending activity, climbed back into the positive territory with a score of 50.2 in August after languishing in the negative territory for five consecutive months. Any score above 50 indicates an increase in billings and the score has remained stable till December.
The ABI readings in the fourth quarter of 2012, in fact, exhibited the strongest growth since the downturn in early 2008. This momentum is expected to persist and conditions are expected improve, albeit at a slow and steady rate.
The American Institute of Architects projects a 5% increase in spending in 2013 for non-residential construction projects, on the back of higher construction of commercial facilities, particularly for hotels followed by industrial construction spending. The spending is expected to shore up to 7.2% in 2014.
Meanwhile, the residential housing sector is also showing signs of positive growth with figures at highest levels in more than four years. In 2012, housing starts totaled 780,000, surging 28% from 2011 and housing permits (an indicator of future demand) escalated 30% to 813,000. Both attained their respective highest level since 2008. Housing completions rose 11% to 651,000 in 2012, the highest level since 2010.
According to the most recent most issued data, in December housing starts spiked 37% year over year to a seasonally adjusted annual rate of 954,000. Building permits were at a seasonally adjusted annual rate of 903,000, 29% higher than the year-ago figure.
In a nutshell, record-low mortgage rates, rising rents and reduced prices of properties are luring buyers. These figures reinforce the belief that U.S. residential construction is finally stabilizing and is on the road to a much awaited recovery.
Analyzing the fourth quarter results of the major steel companies in our coverage -- ArcelorMittal ( MT ), United States Steel ( X ), Nucor ( NUE ) and AK Steel ( AKS ) -- we see revenues were marred by the drop in average steel prices. This does not come as a surprise as oversupply in the U.S. steel industry and increased steel imports in the domestic market affected steel prices, which in turn hurt margins and profits of the steel players. Furthermore, the gloomy macroeconomic condition in Europe is another area of concern as it is the largest market for total U.S. exports.
Given the scenario in Europe, ArcelorMittal, the world's largest steelmaker in terms of volume and Europe's largest steelmaker, recently announced its plans to permanently close its plant in Liege, Belgium owing to the slack demand and weakening European economy. The company also announced the idling of its liquid phase in Oct 2011 due to structural over-capacity in Northern Europe. The production halt at the Liege plant was done to better focus on the company's downstream activities, operating five core lines and seven flexible lines.
However, economic conditions worsened since then and demand for steel in Europe declined another 8%-9% in 2012 and is currently 29% below the pre-crisis levels. The Leige business is heavily dependent on the automotive sector, which faced a major downturn in 2012. Consequently, tepid demand also had a hand in idling of the facility and ArcelorMittal further stated that it will close six production lines at Liege that manufacture finished steel products for the auto industry. It is also closing a coke plant, which produces fuel for blast furnaces.
Going into 2013, steelmakers expect profits to be affected by continued increase in steel imports, volatility in steel pricing along with macroeconomic uncertainty stemming from the recessionary conditions in Europe and sluggish growth in the emerging markets.
However, the sector will benefit from the strong momentum in the automotive markets. The outlook for other key markets -- transportation, energy, industrial and agricultural sectors also remains favorable. The turnaround in the so-far faltering construction sector will definitely provide a much-needed impetus to the sector.
Steelmakers are increasing their consolidation efforts, particularly in China and India, to derive economies of scale and other synergies to remain competitive. A major development in this sector was the recent merger of Japan's largest and the world's sixth-largest steel maker Nippon Steel Corporation with Sumitomo Metal Industries to form the world's second biggest steel firm -- Nippon Steel & Sumitomo Metal Corporation ( NSSMY ). With a combined capacity of 46.1 million tons, it has replaced China's Hebei Group in the second position, with production of 44.4 million tons. The merger is targeted to generate savings in the face of increasingly intense global competition.
China's recent attempt to bolster its economy by approving 60 infrastructure projects worth more than $150 billion will help bolster the steel sector. Prices could potentially stabilize on the back of a rebound in construction activity in the developing countries, in particular China, India and South Korea. Furthermore, the sector will reap the benefits of the Federal Reserve's move to boost the U.S economy. However, the European debt crisis and its potential global impact remain headwinds for the industry.
Gold
As per the World Gold Council, 2011 was a milestone year for gold as global demand for the yellow metal scaled up 0.4% to 4,067.1 tons at an estimated value of $205.5 billion -- the highest tonnage level with a value exceeding $200 billion since 1997. The increase was mainly driven by the investment sector, particularly in India, China and Europe.
As per the most recent data available, gold demand stood at 1084.6 tons in third quarter 2012, down 11% from the historic high level in the third quarter of 2011. Strong ETF inflow and higher demand from central banks was offset by declines in demand for jewelry, investment and in the technology sectors due to higher prices. Almost 68% of the decline stemmed from a steep drop in the bar and coin segment.
In absolute terms, gold demand in the quarter was valued at $57.6 billion, down 14% from the third quarter of fiscal 2011. Average gold price in the quarter stood at $1,652, down 3% year over year.
Central banks remained the primary purchasers of gold, accounting for around 9% of total gold demand at 97.6 tons. Investment demand declined 16%, mainly due to a drop in bar and coin investment. Gold demand in the technology sector was 108.2 tons, a 6% annual decline due to higher gold prices, weak consumer demand, uncertainty in Europe and substitution to more affordable alternatives.
Jewelry demand dipped 2% to 448.8 tons due to higher price levels as well as unfavorable economic conditions. China, Saudi Arabia, US and European markets saw declines. On the contrary, jewelry demand was strong in India, a major consumer of gold and accounted for 30% of global demand. Despite record high prices, demand was on the rise thanks to improving sentiment, stock building and positive price expectations.
Demand for gold in China, another major market, decreased 5% to 123.8 tons as consumers cut back spending given the slow economic growth. Demand in the U.S market was affected as customers are trending toward lower carat gold, particularly with the penetration of 10-carat and other alternative metals.
Mine production dipped 1% to 731.6 tons in the quarter. Mine workers' strike in South Africa, disappointing results for a number of operations, lower-than-expected growth at new or recovering mines affected production during the quarter. Recycling activity decreased 2% to 460.7 tons, bringing the total supply to 1,188.3 tons, down 2% year over year.
Gold prices in 2011 ranged from a low of $1,310 per ounce to a high of $1,895 per ounce, with an average gold price of $1,572 per ounce. The record gold price of $1,895 per ounce was attained in September, 33% higher than the 2010 peak of $1,421 per ounce in November.
In 2012, gold prices have has ranged from $1,540 per ounce to $1,791.75 per ounce, with an average of $1,669.03 per ounce. Gold prices had a solid run in the first three quarters of 2012. Continuing concerns about Europe's financial problems and China's reduced economic growth forecast led to the climb.
Furthermore, the announcement of a third round of quantitative easing led to a surge in gold prices. However, in the fourth quarter, prices fell from $1,776 per ounce to $1,657 per ounce, a 6.7% drop. Despite a weak fourth quarter gold stood at $1657.5 per ounce at 2012 end, up 8.3% and marked the 12th year of annual gains.
The official sector is expected to continue to be a net buyer of gold in 2013. However, high gold prices and economic uncertainties will likely keep a check on demand for jewelry. Demand in the technology sector will be dampened due to high prices and the shift toward lower cost substitutes.
A climb in gold prices has not always translated into increased revenues for all the gold miners, as they have to deal with increased cash costs and production issues. As prices for gold rise further, gold giants such as Barrick Gold ( ABX ) and Goldcorp ( GG ), being unhedged producers of gold, will enjoy significant leverage to gold prices.
The cost increases need to be controlled in order to rake in profits. On the other hand, gold producers like Newmont Mining ( NEM ) and Kinross Gold ( KGC ) are expected to suffer from lower ore grades that subdue production levels, increase mining costs and negate the benefits of rising gold prices.
Ironically, rising gold prices has not had the same effect on the share prices of the gold companies. Investors prefer alternative financial products that allow them to invest in gold rather than investment in gold companies per se. These companies may be entangled in labor issues, escalating cost and other risks.
Gold remains a coveted asset given its long-term supply and demand dynamics and influenced by macroeconomic factors. The value and wealth preservation attributes of gold continue to lure investors and consumers, and is considered a safe investment. Concerns regarding economic growth in developed countries have made gold an attractive and safe investment option.
Gold prices will continue its rally in 2013, driven by investment and buying of gold by the central banks as a reserve portfolio asset. Strength in Indian markets, which alone consumes nearly 45%−50% of the world's gold, should also provide support.
Furthermore, recovery in China could contribute to the rise in the prices of gold. The Eurozone debt crisis and the geopolitical risks in the Middle East will pose as important drivers for a sustained demand for gold as a safe haven.
Aluminum
The aluminum industry is highly cyclical, with prices subject to worldwide supply and demand.
Alcoa ( AA ), the world leader in the production of primary aluminum, kicked off the fourth quarter earnings season with a revenue decline of 1.5% due to lower realized metal price. On an adjusted basis, the company reported earnings per share of 6 cents reversing its year-ago loss of 18 cents per share earned in the year ago quarter. The company's midstream and downstream businesses delivered profits and its cost-cutting measures also supported the results.
Alcoa is optimistic for 2013 and expects global demand for aluminum to increase 7%, up from 6% growth in 2012. The company projects 9%-10% global growth in the aerospace sector this year. Its growth forecast for the other markets are -- automotive (1%-4%), commercial transportation (2%-7%), packaging (2%-3%), building and construction (4%-5%) and industrial gas turbine (3%-5%). Alcoa remains firm on the long-term prospects for aluminum and envisions global demand for aluminum to double by 2020.
Alcoa's positive long-term outlook notwithstanding, prices have been under pressure, prompting companies to cut back on production. Alcoa's results have suffered because of the decline in realized aluminum prices. BHP Billiton ( BHP ) and Rio Tinto ( RIO ) have either sold or halted development of aluminum projects following a decline in aluminum prices.
In 2012, BHP sold its 33.3% stake in the Guinea Alumina joint venture to its partners and also halted bauxite exploration at its Boffa-Santou-Houda site in Guinea. The company also abandoned plans to build a smelter in the Democratic Republic of Congo. Rio is set to divest 13 aluminum assets, including its Gove operations in Australia. Alcoa is looking to buy mines used in the manufacture of aluminium from BHP Billiton and Rio Tinto.
Alcoa is aggressively slashing costs and pursuing strategies to move down its cost curves in its upstream businesses. The company remains committed to achieving its target of moving down the cost curve 10 percentage points in smelting and 7 percentage points in refining by 2015. The company completed planned closure or curtailments of 531,000 metric tons, or 12% of its highest-cost system smelting capacity, to enhance its competitive position.
This trend will likely continue until aluminum prices recover. Energy prices and other input costs are expected to pose challenges for the aluminum industry, though oil prices have been on the downside lately. In addition to the curtailments, the company will step up activities to reduce the escalating cost of raw materials.
In the medium to long term, aluminum consumption is expected to improve on a global basis. The revival is palpable in the automotive and packaging industries, one of the key consumer markets. The automobile market is also becoming increasingly aluminum-intensive, benefiting from its recyclability and light-weight properties. The global push to improve fuel efficiency in vehicles is expected to more than double demand for aluminum in the auto industry by 2025.
Further, the surge in copper prices last year has triggered a switch among manufacturers to aluminum. Automobiles, air conditioners and industrial components manufacturers are now shifting their focus to the more economical metal. In response to the upsurge in automotive demand, Alcoa has invested $300 million in expansion projects at its Davenport, Iowa rolled products plant.
We expect aluminum demand to increase over the next three years, outstripping supply growth. As a result, the aluminum market is likely to witness deficits for a prolonged period. This provides a backdrop supportive of high alumina and aluminum prices. China and India are witnessing rapid industrialization.
The China stimulus plan will also work as positives for underlying aluminum demand. Leading aluminum producers such as Alcoa and Aluminum Corporation of China , or Chalco ( ACH ) should also benefit from the improving demand outlook.
Copper
Copper is a major industrial metal with its price strongly depending on the economic growth outlook. The metal's strong cyclical leverage accounts for its nickname "Dr. Copper."
The metal's popularity in industrial usage is due to its high ductility, malleability and thermal and electrical conductivity, along with its resistance to corrosion. In terms of consumption, copper holds the third place after iron and aluminum. Construction is the single largest market for copper, followed by electronics and electronic products, transportation, industrial machinery, and consumer and general products.
Copper prices witnessed record high levels from 2006 through most of 2008 as limited supplies, growing demand from China and other emerging economies led to the surge in copper prices and low level of inventories. In December 2008, copper prices dipped to a low of $1.26 per pound due to reduced consumption, turbulence in the U.S. financial markets and concerns about the global economy.
However, copper prices have since improved based on the strong demand from emerging markets and limited supply. In 2011, London Metal Exchange (LME) spot-copper prices ranged from $3.08 per pound to a record high of $4.60 per pound, with an average of $4.00 per pound.
In the first quarter of 2012, LME spot copper prices averaged $3.77 per pound. However, during the second quarter of 2012, LME spot copper prices averaged $3.57 per pound and dipped further to $3.50 in the third quarter. This drop reflected concerns regarding a slowdown in the Chinese economy, Europe's sovereign debt crisis, and a slowing U.S. economy.
During fourth-quarter 2012, LME spot copper prices averaged $3.59 per pound. Overall in 2012, LME spot copper prices averaged $3.61 per pound, a 10% drop from 2011.
The drop in price has hurt the results of copper producers like Freeport-McMoRan Copper & Gold ( FCX ) and Southern Copper ( SCCO ) and Newmont. Struggling with declining copper prices, Freeport has recently taken a major stride to venture into the U.S. energy space as part of the company's strategy to diversify from its bread-and-butter copper mining business. The company is set to buy Plains Exploration & Production ( PXP ) and McMoRan Exploration ( MMR ) for roughly $9 billion.
Freeport's copper business has been affected by the sluggish global economy. Demand from key end-markets, including construction materials and electronics, remains weak due to the overall economic softness. The buyouts are expected to provide new opportunities for the company.
Notwithstanding the current volatility in prices, we have a long-term bullish stance on copper, supported by its widespread use, limited supplies from existing mines and the absence of significant new development projects. Prices will be influenced by demand from China and emerging markets, economic activity in the U.S. and other industrialized countries, the timing of new supplies of copper and production levels of mines and copper smelters. Companies that have a high leverage to copper prices will benefit immensely from the potential demand for the metal in the developing markets.
Overall Industry Outlook
Cost inflation in the sector is expected to be a headwind for metal and mining companies over the next several years, driven by a number of factors viz. labor, energy, ore grades, currencies, supply constraints and taxes. Global economic uncertainties, softening commodity prices, higher input costs are increasing the pressure on company margins.
To combat this, mining and metals companies are reviewing their portfolios to identify underperforming assets and shut down or divest these high cost and non-core assets. Industry consolidation, automation technology, owner-operated mines and investment in energy assets are some of the steps that companies are taking to mitigate the impact of rising costs.
Growth in the emerging markets, particularly China and India, was a major driver of metals demand over the last few years. However, of late, demand in China has slowed down. China's recent $150 billion infrastructure stimulus has helped improve the sentiment somewhat and holds promise for the metals and mining industry going forward.
In the developed world, persistent recessionary conditions in Europe will have residual effects elsewhere. The U.S. Federal Reserve also appears to be actively engaged in sustaining the U.S economy's momentum, which will hopefully jumpstart growth once again.
This synchronized global economic slowdown is the biggest headwind for the metals space overall at present. That said, the long-term picture remains a lot more promising as the emerging market economies are expected to get back in shape with the help of expected fiscal and monetary stimuli.
ALCOA INC (AA): Free Stock Analysis Report
BARRICK GOLD CP (ABX): Free Stock Analysis Report
ALUMINUM CP-ADR (ACH): Free Stock Analysis Report
AK STEEL HLDG (AKS): Free Stock Analysis Report
BHP BILLITN LTD (BHP): Free Stock Analysis Report
FREEPT MC COP-B (FCX): Free Stock Analysis Report
GOLDCORP INC (GG): Free Stock Analysis Report
KINROSS GOLD (KGC): Free Stock Analysis Report
MILLENNIAL MEDA (MM): Free Stock Analysis Report
ARCELOR MITTAL (MT): Free Stock Analysis Report
NEWMONT MINING (NEM): Free Stock Analysis Report
NIPPON STEEL CP (NSSMY): Get Free Report
NUCOR CORP (NUE): Free Stock Analysis Report
PLAINS EXPL&PRD (PXP): Free Stock Analysis Report
RIO TINTO-ADR (RIO): Free Stock Analysis Report
SOUTHERN COPPER (SCCO): Free Stock Analysis Report
UTD STATES STL (X): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alcoa ( AA ), the world leader in the production of primary aluminum, kicked off the fourth quarter earnings season with a revenue decline of 1.5% due to lower realized metal price. The seasonally adjusted annual rate (SAAR) in December was 15.4 million vehicles, the second straight month of above 15 million SAAR in 2012. ALCOA INC (AA): Free Stock Analysis Report BARRICK GOLD CP (ABX): Free Stock Analysis Report ALUMINUM CP-ADR (ACH): Free Stock Analysis Report AK STEEL HLDG (AKS): Free Stock Analysis Report BHP BILLITN LTD (BHP): Free Stock Analysis Report FREEPT MC COP-B (FCX): Free Stock Analysis Report GOLDCORP INC (GG): Free Stock Analysis Report KINROSS GOLD (KGC): Free Stock Analysis Report MILLENNIAL MEDA (MM): Free Stock Analysis Report ARCELOR MITTAL (MT): Free Stock Analysis Report NEWMONT MINING (NEM): Free Stock Analysis Report NIPPON STEEL CP (NSSMY): Get Free Report NUCOR CORP (NUE): Free Stock Analysis Report PLAINS EXPL&PRD (PXP): Free Stock Analysis Report RIO TINTO-ADR (RIO): Free Stock Analysis Report SOUTHERN COPPER (SCCO): Free Stock Analysis Report UTD STATES STL (X): Free Stock Analysis Report To read this article on Zacks.com click here.
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ALCOA INC (AA): Free Stock Analysis Report BARRICK GOLD CP (ABX): Free Stock Analysis Report ALUMINUM CP-ADR (ACH): Free Stock Analysis Report AK STEEL HLDG (AKS): Free Stock Analysis Report BHP BILLITN LTD (BHP): Free Stock Analysis Report FREEPT MC COP-B (FCX): Free Stock Analysis Report GOLDCORP INC (GG): Free Stock Analysis Report KINROSS GOLD (KGC): Free Stock Analysis Report MILLENNIAL MEDA (MM): Free Stock Analysis Report ARCELOR MITTAL (MT): Free Stock Analysis Report NEWMONT MINING (NEM): Free Stock Analysis Report NIPPON STEEL CP (NSSMY): Get Free Report NUCOR CORP (NUE): Free Stock Analysis Report PLAINS EXPL&PRD (PXP): Free Stock Analysis Report RIO TINTO-ADR (RIO): Free Stock Analysis Report SOUTHERN COPPER (SCCO): Free Stock Analysis Report UTD STATES STL (X): Free Stock Analysis Report To read this article on Zacks.com click here. The seasonally adjusted annual rate (SAAR) in December was 15.4 million vehicles, the second straight month of above 15 million SAAR in 2012. Alcoa ( AA ), the world leader in the production of primary aluminum, kicked off the fourth quarter earnings season with a revenue decline of 1.5% due to lower realized metal price.
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ALCOA INC (AA): Free Stock Analysis Report BARRICK GOLD CP (ABX): Free Stock Analysis Report ALUMINUM CP-ADR (ACH): Free Stock Analysis Report AK STEEL HLDG (AKS): Free Stock Analysis Report BHP BILLITN LTD (BHP): Free Stock Analysis Report FREEPT MC COP-B (FCX): Free Stock Analysis Report GOLDCORP INC (GG): Free Stock Analysis Report KINROSS GOLD (KGC): Free Stock Analysis Report MILLENNIAL MEDA (MM): Free Stock Analysis Report ARCELOR MITTAL (MT): Free Stock Analysis Report NEWMONT MINING (NEM): Free Stock Analysis Report NIPPON STEEL CP (NSSMY): Get Free Report NUCOR CORP (NUE): Free Stock Analysis Report PLAINS EXPL&PRD (PXP): Free Stock Analysis Report RIO TINTO-ADR (RIO): Free Stock Analysis Report SOUTHERN COPPER (SCCO): Free Stock Analysis Report UTD STATES STL (X): Free Stock Analysis Report To read this article on Zacks.com click here. The seasonally adjusted annual rate (SAAR) in December was 15.4 million vehicles, the second straight month of above 15 million SAAR in 2012. Alcoa ( AA ), the world leader in the production of primary aluminum, kicked off the fourth quarter earnings season with a revenue decline of 1.5% due to lower realized metal price.
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The seasonally adjusted annual rate (SAAR) in December was 15.4 million vehicles, the second straight month of above 15 million SAAR in 2012. Alcoa ( AA ), the world leader in the production of primary aluminum, kicked off the fourth quarter earnings season with a revenue decline of 1.5% due to lower realized metal price. ALCOA INC (AA): Free Stock Analysis Report BARRICK GOLD CP (ABX): Free Stock Analysis Report ALUMINUM CP-ADR (ACH): Free Stock Analysis Report AK STEEL HLDG (AKS): Free Stock Analysis Report BHP BILLITN LTD (BHP): Free Stock Analysis Report FREEPT MC COP-B (FCX): Free Stock Analysis Report GOLDCORP INC (GG): Free Stock Analysis Report KINROSS GOLD (KGC): Free Stock Analysis Report MILLENNIAL MEDA (MM): Free Stock Analysis Report ARCELOR MITTAL (MT): Free Stock Analysis Report NEWMONT MINING (NEM): Free Stock Analysis Report NIPPON STEEL CP (NSSMY): Get Free Report NUCOR CORP (NUE): Free Stock Analysis Report PLAINS EXPL&PRD (PXP): Free Stock Analysis Report RIO TINTO-ADR (RIO): Free Stock Analysis Report SOUTHERN COPPER (SCCO): Free Stock Analysis Report UTD STATES STL (X): Free Stock Analysis Report To read this article on Zacks.com click here.
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1432.0
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2013-02-14 00:00:00 UTC
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Dow Finishes Down But Only Barely
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AA
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https://www.nasdaq.com/articles/dow-finishes-down-only-barely-2013-02-14
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"We came in with Europe down across the board after some disappointing economic data from various countries ... but in the end, you have to be impressed with the U.S. market's resiliency here," said Schaeffer's Senior Technical Strategist Ryan Detrick, CMT, of today's trading, which saw the Dow Jones Industrial Average (DJI) grind out a minor loss, dropping just 9 points.
Continue reading for more on today's market, including :
The 10 reasons our Senior Options Strategist Tony Venosa, CMT, thinks Target Corp. ( TGT ) is a great candidate for a long trade and could see a "run-up" before its next earnings release.
Our Senior Trading Analyst Bryan Sapp says market dips "continue to be bought."
Bullish last-minute options traders looked for Research In Motion ( BBRY ) to rise in the next few days.
plus...
A break-even day on the markets, some really expensive ketchup, and how option traders reacted to the new airline merger involving US Airways ( LCC ) and American Airlines.
The Dow Jones Industrial Average (DJI) tread water for most of the day, slipping in and out of winning territory before finally finishing at 13,973.39, down nearly 10 points, or 0.1%. Alcoa Inc. ( AA ) led the 14 advancers on the 30-member Dow, jumping 2.1%. The 21 decliners were led by Coca-Cola ( KO ), which fell 1% and continues to drop after this week's disappointing earnings report.
The S&P 500 Index (SPX) gained slightly on the day, picking up more than 1 point, or nearly 0.1%, to close at 1,521.38. The Nasdaq Composite (COMP) also won on the day, finishing at 3,198.66, up nearly 2 points, or 0.1%.
The CBOE Volatility Index (VIX) finished at 12.66, down 0.3 point, or 2.5%.
A Trader's Take :
"The market has had all the reasons in the world to sell off the past few weeks, yet it hasn't -- you have to like seeing that action," Detrick said. "It was another day of more new highs from small and mid-caps ... One other big-time positive is the recent big upward trend in mergers and acquisitions."
3 Things to Know About Today's Market :
Warren Buffett's Berkshire Hathaway (NYSE:BRK.A) today announced it was buying the venerable food maker H.J. Heinz Company (HNZ) for $28 billion. (MarketWatch)
Beer maker Anheuser-Busch InBev (BUD) today altered the terms of its proposed $20 billion merger with Grupo Modelo to try and satisfy U.S. antitrust regulators who have sued to oppose the deal on competitive concerns. (CNNMoney)
Jobless claims dropped by 27,000 as compared to last week's figure, soundly beating analysts' estimates -- and continuing claims now stand at a five-and-a-half year low. (Reuters)
5 Stocks We Were Watching Today :
The officially announced merger between US Airways ( LCC ) and the parent of American Airlines drew long-term bets that LCC's stock wouldn't fall.
Staying on the airline theme, one trader executed a bull call spread on Delta Air Lines (DAL).
Juniper Networks (JNPR) was the target of a blizzard of short-term calls, with traders looking to cash in at tomorrow's close.
As soon as Crocs (CROX) announced its next earnings date, bearish put traders pounced , hoping for a second consecutive earnings miss.
AOL (AOL) saw its stock pull back 2% yesterday, and short-term bearish investors looked to cash in by the end of the week.
For a look at today's options movers and commodities activity, head to page 2.
Commodities :
Oil futures carved out a minor win Thursday despite a gain by the U.S. dollar. Crude for March delivery added 30 cents, or 0.3%, to close at $97.31 per barrel.
But the dollar's rise did push gold futures down, as April-dated gold fell $9.60, or 0.6%, to end at $1,635.50 per ounce -- its lowest daily finish since Aug. 20.
At the end of every market day, the staff at Schaeffer's Investment Research reviews the trading day in detail, covering major events and key market developments. Don't miss this critical, timely and insightful report. If you enjoyed today's edition of Market Recap, sign up here for free daily delivery straight to your inbox.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alcoa Inc. ( AA ) led the 14 advancers on the 30-member Dow, jumping 2.1%. "We came in with Europe down across the board after some disappointing economic data from various countries ... but in the end, you have to be impressed with the U.S. market's resiliency here," said Schaeffer's Senior Technical Strategist Ryan Detrick, CMT, of today's trading, which saw the Dow Jones Industrial Average (DJI) grind out a minor loss, dropping just 9 points. Continue reading for more on today's market, including : The 10 reasons our Senior Options Strategist Tony Venosa, CMT, thinks Target Corp. ( TGT ) is a great candidate for a long trade and could see a "run-up" before its next earnings release.
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Alcoa Inc. ( AA ) led the 14 advancers on the 30-member Dow, jumping 2.1%. "We came in with Europe down across the board after some disappointing economic data from various countries ... but in the end, you have to be impressed with the U.S. market's resiliency here," said Schaeffer's Senior Technical Strategist Ryan Detrick, CMT, of today's trading, which saw the Dow Jones Industrial Average (DJI) grind out a minor loss, dropping just 9 points. Continue reading for more on today's market, including : The 10 reasons our Senior Options Strategist Tony Venosa, CMT, thinks Target Corp. ( TGT ) is a great candidate for a long trade and could see a "run-up" before its next earnings release.
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Alcoa Inc. ( AA ) led the 14 advancers on the 30-member Dow, jumping 2.1%. "We came in with Europe down across the board after some disappointing economic data from various countries ... but in the end, you have to be impressed with the U.S. market's resiliency here," said Schaeffer's Senior Technical Strategist Ryan Detrick, CMT, of today's trading, which saw the Dow Jones Industrial Average (DJI) grind out a minor loss, dropping just 9 points. plus... A break-even day on the markets, some really expensive ketchup, and how option traders reacted to the new airline merger involving US Airways ( LCC ) and American Airlines.
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Alcoa Inc. ( AA ) led the 14 advancers on the 30-member Dow, jumping 2.1%. "We came in with Europe down across the board after some disappointing economic data from various countries ... but in the end, you have to be impressed with the U.S. market's resiliency here," said Schaeffer's Senior Technical Strategist Ryan Detrick, CMT, of today's trading, which saw the Dow Jones Industrial Average (DJI) grind out a minor loss, dropping just 9 points. plus... A break-even day on the markets, some really expensive ketchup, and how option traders reacted to the new airline merger involving US Airways ( LCC ) and American Airlines.
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1433.0
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2013-02-08 00:00:00 UTC
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Halftime Report: Fourth-Quarter Earnings Season
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AA
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https://www.nasdaq.com/articles/halftime-report-fourth-quarter-earnings-season-2013-02-08
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Submitted by Wall St. Daily as part of our contributors program
Yesterday , I shared why the Fed is ultimately the one mashing the gas pedal to drive stock prices higher. (Scary thought, huh?)
Well, the good news is that the fate of our hard-earned capital isn't resting entirely in Ben Bernanke's hands.
Even if he eases up on the quantitative easing (QE) efforts, underlying company fundamentals support higher prices still.
Here's proof…
So Far, So Good
The end of last week marked the end of this year's professional football season. (Pass the Kleenex, please.) But it also marked the halfway point for the fourth-quarter earnings-reporting season, which is a tad more important.
You'll recall, on January 10, I told you to keep an eye on three key earnings metrics that can predict the trajectory of stock prices in the weeks and months ahead.
So let's check in on the latest readings…
~Key Metric #1: Earnings "Beat Rate"
I told you that the earnings bar was set extremely low heading into this reporting season. And that's proven to be true.
Case in point: 63.1% of companies beat earnings estimates so far, according to Bespoke Investment Group. If the reporting season ended today, that would be the best earnings "beat rate" in nine quarters.
Remember, I also predicted that "any reading above last quarter's 60.1% should be enough to propel stock prices higher." And sure enough, the S&P 500 Index is up 3.7% since Alcoa ( AA ) officially kicked off the reporting season.
It's worth noting that Bespoke bases its calculations on a much broader universe of U.S. stocks. But if we limit our analysis to just the S&P 500 companies, we get a similar picture of strength.
FactSet's latest Earnings Insight report reveals that of the 234 companies in the S&P 500 that already reported results, 70% topped expectations. That's better than the average beat rate over the last four quarters, which is 69%.
~Key Metric #2: Revenue "Beat Rate"
While earnings can be manipulated, sales cannot. This makes revenue a more reliable indicator of demand. And based on current sales data, demand is stronger than expected, too.
At the halfway mark, the revenue "beat rate" - the percentage of companies topping sales expectations - stands at 62.2%, according to Bespoke. That's a dramatic increase from last quarter's reading of 48.2%.
Once again, FactSet's calculations confirm the strength. It estimates that 67% of S&P 500 companies topped sales expectations so far. And that's head and shoulders above the 50% average of the last four quarters.
~Key Metric #3: Guidance Spread
While companies aren't required to provide future guidance, enough do. So I've long contested that it's worthwhile to track this statistic. I'm second-guessing that assertion now, though. Here's why…
For the last five quarters, the guidance spread - the difference between the percentage of companies raising guidance and those lowering guidance - has been negative.
And although Bespoke hasn't updated its calculations recently, FactSet's report reveals that we're most likely in store for another negative reading this quarter.
So far, 50 companies in the S&P 500 have issued negative guidance. Meanwhile, only 11 have issued positive guidance.
Add it all up, and I think corporate executives that provide guidance are attempting to game the system. They're constantly under-promising - just so they can over-deliver.
And there's definitely an incentive to do so.
Consider: Going into this quarter, expectations were extremely low. Yet most companies beat expectations. The end result? Stock prices are up an average of 0.77% on the day of their earnings report, according to Bespoke. That's the best one-day average gain in eight quarters.
In other words, the whole under-promise, over-deliver tactic ultimately helps drive share prices higher. I'll take it for now. But in future quarters, we might revisit the importance of the guidance spread metric. Stay tuned.
Translating the Data into Strategy
Now, before someone quips that all these metrics are meaningless unless we can use them to identify new opportunities, let me do just that…
It stands to reason that "triple plays" - companies beating earnings expectations, beating revenue expectations and raising guidance - are the most fundamentally solid - and, therefore, the most investment worthy.
And if we focus on sectors with the highest beat rates, too, we should be able to increase our odds of investment success even more. After all, high beat rates indicate that the sector is benefiting from some type of tailwind. Otherwise, companies would be missing expectations, not beating them.
With all this in mind, we should be focusing on the technology and healthcare sectors right now, as they sport the highest earnings and revenue beat rates this quarter.
In terms of specific opportunities, here are two technology triple plays to consider:
Synaptics ( SYNA )
Super Micro Computer ( SMCI )
And here are two healthcare triple plays to consider:
Qiagen NV ( QGEN )
Covidien ( COV )
As always, I recommend that you perform your own due diligence before investing in any of them. And "you're welcome" for narrowing the universe of thousands of stocks to choose from, down to only a handful.
Bottom line: There's not a soul on Earth predicting that Ben Bernanke is going to slam on the brakes by ending QE efforts and simultaneously raising interest rates. So we can reasonably expect the bull market to continue, given the underlying momentum in corporate fundamentals.
That being said, don't buy blindly. Instead, invest in sectors and companies putting up the strongest results. Or, more simply, remember that the trend is your friend
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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And sure enough, the S&P 500 Index is up 3.7% since Alcoa ( AA ) officially kicked off the reporting season. Submitted by Wall St. Daily as part of our contributors program Yesterday , I shared why the Fed is ultimately the one mashing the gas pedal to drive stock prices higher. You'll recall, on January 10, I told you to keep an eye on three key earnings metrics that can predict the trajectory of stock prices in the weeks and months ahead.
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And sure enough, the S&P 500 Index is up 3.7% since Alcoa ( AA ) officially kicked off the reporting season. Even if he eases up on the quantitative easing (QE) efforts, underlying company fundamentals support higher prices still. At the halfway mark, the revenue "beat rate" - the percentage of companies topping sales expectations - stands at 62.2%, according to Bespoke.
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And sure enough, the S&P 500 Index is up 3.7% since Alcoa ( AA ) officially kicked off the reporting season. At the halfway mark, the revenue "beat rate" - the percentage of companies topping sales expectations - stands at 62.2%, according to Bespoke. Here's why… For the last five quarters, the guidance spread - the difference between the percentage of companies raising guidance and those lowering guidance - has been negative.
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And sure enough, the S&P 500 Index is up 3.7% since Alcoa ( AA ) officially kicked off the reporting season. If the reporting season ended today, that would be the best earnings "beat rate" in nine quarters. ~Key Metric #2: Revenue "Beat Rate" While earnings can be manipulated, sales cannot.
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1434.0
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2013-02-07 00:00:00 UTC
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Alcoa Recognized in China - Analyst Blog
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https://www.nasdaq.com/articles/alcoa-recognized-in-china-analyst-blog-2013-02-07
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Aluminum giant Alcoa Inc. ( AA ) has announced that it has received the 2013 Accessory of the Year Award in China. The company was honored in the Best Safety & Energy Savings category.
Alcoa received the award based on its contribution to China's bus manufacturing industry. The awards were sponsored by trade publications CNbuses.com and shangyongqiche.com, with support from the China Tourism News. Alcoa's award win was dedicated to three factors. The first one being its brand influence and reputation.
The second factor taken into consideration was application of Alcoa's products in the China bus market. Alcoa has a presence in China since 2004 and advanced processes and technologies, as well as high-quality products have made positive contributions to the development of China's bus manufacturing industry.
The company also expanded its presence in the country by opening a production facility in Suzhou, China, and created a full wheel manufacturing, distribution, sales and service network in China.
The third factor was Lightweighting. Alcoa's forged aluminum wheels help to lightweight the commercial vehicle industry, making it an industry leader.
Alcoa released its fourth-quarter 2012 results on Jan 8. The company swung to profit in the quarter, buoyed by one-time gains. It posted a profit (from continuing operation) of $242 million or 21 cents per share in the fourth quarter compared with a loss of $193 million or 18 cents a share reported in the year-ago quarter. The results were boosted by a gain of $178 million ($161 million post-tax) associated with a hydroelectric project asset sale.
Excluding one-time special items, Alcoa earned $64 million or 6 cents a share in the quarter, in line with the Zacks Consensus Estimate. The company's midstream and downstream businesses delivered profits and its cost-cutting measures also supported the results.
Revenues decreased 1.5% year over year to $5,898 million in the fourth quarter, but were ahead of the Zacks Consensus Estimate of $5,579 million.
Another mining company Freeport-McMoRan Copper & Gold Inc. ( FCX ) recently released its fourth quarter results. The company's adjusted earnings (excluding one-time gains) of 74 cents per share for the fourth quarter of 2012 was in line with the Zacks Consensus Estimate.
Profit, as reported, was $743 million or 78 cents per share, a 16.1% rise from the prior-year quarter's profit of around $640 million or 67 cents per share. The results were aided by higher copper and gold production.
Alcoa currently retains a short-term Zacks Rank #3 (Hold).
Other companies in the mining industry with favorable Zacks Ranks are Aluminum Corporation Of China Limited ( ACH ), and BHP Biliton Plc. ( BBL ) with both carrying a Zacks Rank #2 (Buy).
ALCOA INC (AA): Free Stock Analysis Report
ALUMINUM CP-ADR (ACH): Free Stock Analysis Report
BILLITON ADR (BBL): Free Stock Analysis Report
FREEPT MC COP-B (FCX): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Aluminum giant Alcoa Inc. ( AA ) has announced that it has received the 2013 Accessory of the Year Award in China. ALCOA INC (AA): Free Stock Analysis Report ALUMINUM CP-ADR (ACH): Free Stock Analysis Report BILLITON ADR (BBL): Free Stock Analysis Report FREEPT MC COP-B (FCX): Free Stock Analysis Report To read this article on Zacks.com click here. Excluding one-time special items, Alcoa earned $64 million or 6 cents a share in the quarter, in line with the Zacks Consensus Estimate.
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ALCOA INC (AA): Free Stock Analysis Report ALUMINUM CP-ADR (ACH): Free Stock Analysis Report BILLITON ADR (BBL): Free Stock Analysis Report FREEPT MC COP-B (FCX): Free Stock Analysis Report To read this article on Zacks.com click here. Aluminum giant Alcoa Inc. ( AA ) has announced that it has received the 2013 Accessory of the Year Award in China. Excluding one-time special items, Alcoa earned $64 million or 6 cents a share in the quarter, in line with the Zacks Consensus Estimate.
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ALCOA INC (AA): Free Stock Analysis Report ALUMINUM CP-ADR (ACH): Free Stock Analysis Report BILLITON ADR (BBL): Free Stock Analysis Report FREEPT MC COP-B (FCX): Free Stock Analysis Report To read this article on Zacks.com click here. Aluminum giant Alcoa Inc. ( AA ) has announced that it has received the 2013 Accessory of the Year Award in China. It posted a profit (from continuing operation) of $242 million or 21 cents per share in the fourth quarter compared with a loss of $193 million or 18 cents a share reported in the year-ago quarter.
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Aluminum giant Alcoa Inc. ( AA ) has announced that it has received the 2013 Accessory of the Year Award in China. ALCOA INC (AA): Free Stock Analysis Report ALUMINUM CP-ADR (ACH): Free Stock Analysis Report BILLITON ADR (BBL): Free Stock Analysis Report FREEPT MC COP-B (FCX): Free Stock Analysis Report To read this article on Zacks.com click here. Alcoa received the award based on its contribution to China's bus manufacturing industry.
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1435.0
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2013-02-04 00:00:00 UTC
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Alcoa Inc. (AA) Ex-Dividend Date Scheduled for February 06, 2013
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AA
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https://www.nasdaq.com/articles/alcoa-inc-aa-ex-dividend-date-scheduled-february-06-2013-2013-02-04
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nan
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nan
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Alcoa Inc. ( AA ) will begin trading ex-dividend on February 06, 2013. A cash dividend payment of $0.03 per share is scheduled to be paid on February 25, 2013. Shareholders who purchased AA stock prior to the ex-dividend date are eligible for the cash dividend payment. This marks the 16th quarter that AA has paid the same dividend.
The previous trading day's last sale of AA was $9, representing a -17.58% decrease from the 52 week high of $10.92 and a 12.98% increase over the 52 week low of $7.97.
AA is a part of the Capital Goods sector, which includes companies such as National-Oilwell, Inc. ( NOV ) and Precision Castparts Corporation ( PCP ). AA's current earnings per share, an indicator of a company's profitability, is $.17. Zacks Investment Research reports AA's forecasted earnings growth in 2013 as 156.25%, compared to an industry average of 25.8%.
For more information on the declaration, record and payment dates, visit the AA Dividend History page.
Interested in gaining exposure to AA through an Exchange Traded Fund [ETF]?
The following ETF(s) have AA as a top-10 holding:
N/A (ALUM)
N/A ( NOMO ).
The top-performing ETF of this group is ALUM with an decrease of -6.75% over the last 100 days. It also has the highest percent weighting of AA at 9.94%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shareholders who purchased AA stock prior to the ex-dividend date are eligible for the cash dividend payment. AA is a part of the Capital Goods sector, which includes companies such as National-Oilwell, Inc. ( NOV ) and Precision Castparts Corporation ( PCP ). Zacks Investment Research reports AA's forecasted earnings growth in 2013 as 156.25%, compared to an industry average of 25.8%.
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Shareholders who purchased AA stock prior to the ex-dividend date are eligible for the cash dividend payment. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Alcoa Inc. ( AA ) will begin trading ex-dividend on February 06, 2013.
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Shareholders who purchased AA stock prior to the ex-dividend date are eligible for the cash dividend payment. The previous trading day's last sale of AA was $9, representing a -17.58% decrease from the 52 week high of $10.92 and a 12.98% increase over the 52 week low of $7.97. For more information on the declaration, record and payment dates, visit the AA Dividend History page.
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The following ETF(s) have AA as a top-10 holding: Alcoa Inc. ( AA ) will begin trading ex-dividend on February 06, 2013. Shareholders who purchased AA stock prior to the ex-dividend date are eligible for the cash dividend payment.
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1436.0
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2013-01-31 00:00:00 UTC
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Alcoa Signs Deal with COMAC - Analyst Blog
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AA
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https://www.nasdaq.com/articles/alcoa-signs-deal-with-comac-analyst-blog-2013-01-31
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nan
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nan
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Alcoa Fastening Systems (AFS), a unit of Alcoa Inc. ( AA ), has announced that it has signed a strategic agreement with Chinese passenger aircraft manufacturer Commercial Aircraft of China Ltd. (COMAC).
The agreement will strengthen Alcoa's presence in China, the world's fastest growing aerospace markets, and also deepen its existing relationship with COMAC. AFS will provide technical assistance in fastener and assembly tooling selection, joint design consideration and quality system management to COMAC for development and production of its commercial C919 aircraft. COMAC will purchase a significant portion of its fasteners from AFS for the initial production of the C919 aircraft.
Alcoa Fastening Systems serves the global aerospace, automotive and commercial transportation markets with the most specialized engineering, highest quality, and the greatest breadth and depth of fastening system solutions in the industry.
Alcoa released its fourth-quarter 2012 results on Jan 8. The company swung to profit in the quarter, buoyed by one-time gains. It posted a profit (from continuing operation) of $242 million or 21 cents per share in the fourth quarter compared with a loss of $193 million or 18 cents a share reported in the year-ago quarter. The results were boosted by a gain of $178 million ($161 million post-tax) associated with a hydroelectric project asset sale.
Excluding one-time special items, Alcoa earned $64 million or 6 cents a share in the quarter, in line with the Zacks Consensus Estimate. The company's midstream and downstream businesses delivered profits and its cost-cutting measures also supported the results.
Revenues decreased 1.5% year over year to $5,898 million in the fourth quarter, but were ahead of the Zacks Consensus Estimate of $5,579 million.
Alcoa expects global aluminum demand to grow 7% in 2013, up from 6% in 2012. It currently retains a short-term Zacks Rank #3 (Hold).
Other companies in the mining industry with favorable Zacks Ranks are Aluminum Corporation Of China Limited ( ACH ), Atlatsa Resources Corporation ( ATL ) and BHP Biliton Plc. ( BBL ) with all of them carring a Zacks Rank #2 (Buy).
ALCOA INC (AA): Free Stock Analysis Report
ALUMINUM CP-ADR (ACH): Free Stock Analysis Report
ATLATSA RESRCS (ATL): Free Stock Analysis Report
BILLITON ADR (BBL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alcoa Fastening Systems (AFS), a unit of Alcoa Inc. ( AA ), has announced that it has signed a strategic agreement with Chinese passenger aircraft manufacturer Commercial Aircraft of China Ltd. (COMAC). ALCOA INC (AA): Free Stock Analysis Report ALUMINUM CP-ADR (ACH): Free Stock Analysis Report ATLATSA RESRCS (ATL): Free Stock Analysis Report BILLITON ADR (BBL): Free Stock Analysis Report To read this article on Zacks.com click here. The agreement will strengthen Alcoa's presence in China, the world's fastest growing aerospace markets, and also deepen its existing relationship with COMAC.
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ALCOA INC (AA): Free Stock Analysis Report ALUMINUM CP-ADR (ACH): Free Stock Analysis Report ATLATSA RESRCS (ATL): Free Stock Analysis Report BILLITON ADR (BBL): Free Stock Analysis Report To read this article on Zacks.com click here. Alcoa Fastening Systems (AFS), a unit of Alcoa Inc. ( AA ), has announced that it has signed a strategic agreement with Chinese passenger aircraft manufacturer Commercial Aircraft of China Ltd. (COMAC). Alcoa Fastening Systems serves the global aerospace, automotive and commercial transportation markets with the most specialized engineering, highest quality, and the greatest breadth and depth of fastening system solutions in the industry.
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Alcoa Fastening Systems (AFS), a unit of Alcoa Inc. ( AA ), has announced that it has signed a strategic agreement with Chinese passenger aircraft manufacturer Commercial Aircraft of China Ltd. (COMAC). ALCOA INC (AA): Free Stock Analysis Report ALUMINUM CP-ADR (ACH): Free Stock Analysis Report ATLATSA RESRCS (ATL): Free Stock Analysis Report BILLITON ADR (BBL): Free Stock Analysis Report To read this article on Zacks.com click here. It posted a profit (from continuing operation) of $242 million or 21 cents per share in the fourth quarter compared with a loss of $193 million or 18 cents a share reported in the year-ago quarter.
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Alcoa Fastening Systems (AFS), a unit of Alcoa Inc. ( AA ), has announced that it has signed a strategic agreement with Chinese passenger aircraft manufacturer Commercial Aircraft of China Ltd. (COMAC). ALCOA INC (AA): Free Stock Analysis Report ALUMINUM CP-ADR (ACH): Free Stock Analysis Report ATLATSA RESRCS (ATL): Free Stock Analysis Report BILLITON ADR (BBL): Free Stock Analysis Report To read this article on Zacks.com click here. The agreement will strengthen Alcoa's presence in China, the world's fastest growing aerospace markets, and also deepen its existing relationship with COMAC.
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1437.0
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2013-01-30 00:00:00 UTC
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U.S. Steel Shows Encouraging Signs Of A Recovery
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AA
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https://www.nasdaq.com/articles/us-steel-shows-encouraging-signs-recovery-2013-01-30
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nan
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nan
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U.S. Steel ( X ) announced its fourth quarter results for 2012 Tuesday. While the company reported a net loss for the quarter and the whole year, the operating results across all major business segments were positive for a third quarter in succession. Going by the guidance provided by the company as well as market conditions, we expect the first quarter of 2013 to be moderately positive.
U.S. Steel reported a quarterly loss of $50 million as compared to the previous year's loss of $211 million for the same quarter. Its overall loss for 2012 stood at $124 million, which is greater than the loss of $53 million incurred in 2011. Steel shipments and sales declined from last year, primarily due to the sale of U.S. Steel's Serbia operations in the European business segment.
For the full year, the average realized price for steel fell drastically from $845/tonne to $742/tonne for the company's European business due to challenging market conditions. Prices showed a negligible decline for the flat-rolled Steel segment from $759/tonne to $750/tonne and an appreciable rise for the tubular steel segment from $1612/tonne to $1687/tonne. While higher prices in the tubular steel segment were driven by increased drilling activity in the U.S., the Flat-rolled steel division was affected by cautious buying patterns among consumers in light of an uncertain economic outlook and the U.S. fiscal situation.
In the next quarter, the erformance of the flat-rolled segment is expected to be flat. While shipments in the tubular steel segment are expected to increase only slightly due to existing inventory levels, the European business is expected to perform well. Higher iron ore costs due to rising prices will impact the cost structure of the European business.
U.S. Steel has three main business segments- Flat-rolled Steel, U.S. Steel Europe, and Tubular Steel. Flat-rolled steel accounts for nearly 75% of shipments while U.S. Steel Europe and Tubular steel account for 15% and 10% of the shipments respectively. The company's total shipments of steel in 2012 stood at 21.7 million tonnes.
See Full Analysis of U.S. Steel Here
Going Forward
U.S. Steel has managed to achieve self-sufficiency in terms of its requirement for coke. Firstly, the company is now producing enough coke from its own facilities at Clairton and Gary Works. Secondly, it has taken advantage of cheap and plentiful natural gas available due to the shale gas abundance by coming up with methods to cost-optimize the blend of coke and natural gas used in its operations. For Q1 2013, the EIA has forecast a nearly 6.5% higher Henry Hub natural gas price as compared to the previous quarter and steel scrap prices are expected to be higher as well. Therefore, the cost advantage from expected lower coal prices will be offset to some extent, even though overall raw material costs are likely to be lower than the previous quarter for the Flat-rolled steel segment.
The Flat-rolled steel segment may stand to gain from the automotive sector as U.S. Steel expects vehicle production to show an 18% annual growth in 2013. According to a company presentation given in November, U.S. Steel has formed a joint venture with Kobe Steel to produce light, ultra-high strength steel to be used in automobile manufacturing. This grade of steel is designed to meet the fuel efficiency requirements for automobiles in the years ahead. Production is expected to begin in Q1 2013 and we expect robust demand in future quarters.
Demand from the construction industry and the pipe and tube industry is also expected to be strong in the U.S. While the company has raised steel prices for the next quarter, the impact on sales and profits will be subdued due to lower prices in the market-based contracts segment. Prices for market-based contracts lag spot prices and since the former account for 70% of the flat-rolled steel shipments, overall price realization is expected to be comparable to the fourth quarter of 2012.
Moderate demand growth is expected from the appliance, electrical steel and tin plate industries in Europe. For the tubular steel business, an expected increase in rig count is good news, but the increasing quantum of imports continue to pose a challenge to U.S. Steel. In 2012, imports constituted more than 50% of the total market share in the oil country tubular goods and line pipe market segments. For the same reason, positive impact from increased drilling in the Gulf of Mexico may be moderate.
The U.S. Steel management acknowledged receiving expressions of interests from potential buyers for its Slovakian plant, but declined to provide any further details. This facility produces 5 million tonnes of steel. If the sale of the Slovakian business goes through, it will end U.S. Steel's presence in Europe. It has already sold its loss-making Serbian operations in January 2012. We think that a major factor driving a potential U.S. Steel decision to sell the Slovakian business could be the financial liabilities it may incur on account of new environmental regulations which are to be enforced shortly.
We have a price estimate of $23 for U.S. Steel which will be revised shortly in light of the recent earnings results.
Understand on Trefis how a company's products impact its stock price
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For the full year, the average realized price for steel fell drastically from $845/tonne to $742/tonne for the company's European business due to challenging market conditions. The U.S. Steel management acknowledged receiving expressions of interests from potential buyers for its Slovakian plant, but declined to provide any further details. We think that a major factor driving a potential U.S. Steel decision to sell the Slovakian business could be the financial liabilities it may incur on account of new environmental regulations which are to be enforced shortly.
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U.S. Steel reported a quarterly loss of $50 million as compared to the previous year's loss of $211 million for the same quarter. Steel shipments and sales declined from last year, primarily due to the sale of U.S. Steel's Serbia operations in the European business segment. For the full year, the average realized price for steel fell drastically from $845/tonne to $742/tonne for the company's European business due to challenging market conditions.
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Prices showed a negligible decline for the flat-rolled Steel segment from $759/tonne to $750/tonne and an appreciable rise for the tubular steel segment from $1612/tonne to $1687/tonne. U.S. Steel has three main business segments- Flat-rolled Steel, U.S. Steel Europe, and Tubular Steel. Flat-rolled steel accounts for nearly 75% of shipments while U.S. Steel Europe and Tubular steel account for 15% and 10% of the shipments respectively.
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Going by the guidance provided by the company as well as market conditions, we expect the first quarter of 2013 to be moderately positive. Prices showed a negligible decline for the flat-rolled Steel segment from $759/tonne to $750/tonne and an appreciable rise for the tubular steel segment from $1612/tonne to $1687/tonne. This facility produces 5 million tonnes of steel.
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1438.0
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2013-01-30 00:00:00 UTC
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Alcoa Cozies Up With China Plane Manufacturer With Fasteners Deal
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AA
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https://www.nasdaq.com/articles/alcoa-cozies-china-plane-manufacturer-fasteners-deal-2013-01-30
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nan
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nan
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Alcoa Fastening Systems (AFS), a unit of Alcoa ( AA ), has announced a new agreement for strategic technology and commercial cooperation with Commercial Aircraft of China Ltd. (COMAC). COMAC is a manufacturer of large passenger aircraft in China and has ambitions of competing with Boeing and Airbus. The deal will help Alcoa gain a stronger foothold in the Chinese aerospace market, which is one of the world's fastest growing markets.
Under the new agreement, AFS will provide COMAC with technical assistance in fastener and assembly tooling selection, joint design consideration and quality system management. The technical assistance will include engineering, design and training. In return, COMAC will purchase a significant chunk of its requirement for fasteners from AFS. These fasteners will be used in the production of COMAC's C919 aircraft. AFS already has a prior technology cooperation agreement with COMAC which was signed in 2009. It aimed at examining advanced aluminum structural concepts, designs and alloys for the C919 aircraft.
The deal is good news for Alcoa as AFS is part of its Engineered Products and Solutions division which focuses on value-added products to generate higher margins for the company. Building specialization in niche segments will help the company stay ahead of competition and mitigate the adverse effects of pricing volatility in the aluminum market.
See Full Analysis for Alcoa Here
Alcoa's total revenues for 2012 were $23.7 billion, of which $5.5 billion were contributed by the Engineering Products and Solutions division. Although total revenues declined in 2012 from the previous year's figure of $24.9 billion, revenues of the Engineered Products division rose from $5.3 billion in 2011. Not only that, adjusted EBITDA margins for the division reached an all-time high of 19% in 2012. (( Q4 2012 Earnings Presentation , Alcoa Website))
While this limited data doesn't reveal a trend by itself, it does show the division's ability for resilience in the face of adverse market conditions. We say so because the prices of aluminum in 2012 fell drastically from their 2011 levels. (( LME Aluminum Price Graph , LME))
In 2011, the Fastening Systems business accounted for $1.3 billion of total revenues of $5.3 billion for the Engineering Products and Solutions division. We expect the figures for 2012 to be available soon.
Fasteners for the aerospace business in China will be manufactured at Alcoa's facility located in Suzhou. Among other products, this facility produces fasteners of two kinds: panel and pin.
The COMAC deal will help Alcoa meet its 2013 targeted revenues of $6.2 billion in the Engineered Products division. In the most recent conference call with analysts, Alcoa's management stressed on research, innovation, and specialized products to drive future growth for the company. Also, in the company's Investor Day presentation in November, new generation fastening systems were identified as one of the areas to drive future organic growth.
We have a Trefis price estimate for Alcoa of $8 after the fourth quarter earnings results.
Understand How a Company's Products Impact its Stock at Trefis
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alcoa Fastening Systems (AFS), a unit of Alcoa ( AA ), has announced a new agreement for strategic technology and commercial cooperation with Commercial Aircraft of China Ltd. (COMAC). Under the new agreement, AFS will provide COMAC with technical assistance in fastener and assembly tooling selection, joint design consideration and quality system management. (( Q4 2012 Earnings Presentation , Alcoa Website)) While this limited data doesn't reveal a trend by itself, it does show the division's ability for resilience in the face of adverse market conditions.
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Alcoa Fastening Systems (AFS), a unit of Alcoa ( AA ), has announced a new agreement for strategic technology and commercial cooperation with Commercial Aircraft of China Ltd. (COMAC). (( LME Aluminum Price Graph , LME)) In 2011, the Fastening Systems business accounted for $1.3 billion of total revenues of $5.3 billion for the Engineering Products and Solutions division. Understand How a Company's Products Impact its Stock at Trefis The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alcoa Fastening Systems (AFS), a unit of Alcoa ( AA ), has announced a new agreement for strategic technology and commercial cooperation with Commercial Aircraft of China Ltd. (COMAC). See Full Analysis for Alcoa Here Alcoa's total revenues for 2012 were $23.7 billion, of which $5.5 billion were contributed by the Engineering Products and Solutions division. (( LME Aluminum Price Graph , LME)) In 2011, the Fastening Systems business accounted for $1.3 billion of total revenues of $5.3 billion for the Engineering Products and Solutions division.
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Alcoa Fastening Systems (AFS), a unit of Alcoa ( AA ), has announced a new agreement for strategic technology and commercial cooperation with Commercial Aircraft of China Ltd. (COMAC). These fasteners will be used in the production of COMAC's C919 aircraft. (( LME Aluminum Price Graph , LME)) In 2011, the Fastening Systems business accounted for $1.3 billion of total revenues of $5.3 billion for the Engineering Products and Solutions division.
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1439.0
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2013-01-28 00:00:00 UTC
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Dow Breaks Its Winning Streak (Albeit Barely), S&P Clings to Support
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AA
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https://www.nasdaq.com/articles/dow-breaks-its-winning-streak-albeit-barely-sp-clings-support-2013-01-28
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nan
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nan
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"It was a very slow day, without a lot of big news," noted Schaeffer's Senior Technical Strategist Ryan Detrick, CMT. "We will have hundreds of earnings and a Fed meeting later this week, though," he added, "so expect more volatility to come soon." In today's trading, the Dow Jones Industrial Average (DJI) pegged another new multi-year high out of the gate but spent much of the day slightly below breakeven, ultimately closing with a slight loss.
Continue reading for more on today's market, including :
Senior Trading Analyst Bryan Sapp reviews the key levels to watch and an interesting metric to consider during the " big week ahead ."
Options action heated up in Facebook Inc ( FB ) ahead of earnings, with speculators honing in on both calls and puts.
For the first time in 2013, the VXX failed to hit a new lower low , and Schaeffer's Contributor Adam Warner has the details.
plus...
Fitch Ratings dismisses its earlier threat, Yahoo! ( YHOO ) speculators prepare for earnings, and Nokia ( NOK ) strategists expect limited volatility.
The Dow Jones Industrial Average (DJI) wasn't able to muster a seventh consecutive up day, despite notching a new multi-year peak of 13,915.72 in early trading. At the closing bell, the blue-chip index was off 14 points, or 0.1%. Leading the dozen Dow names that moved higher today was Caterpillar ( CAT ), which rose nearly 2% after its earnings report . Bringing up the rear was Alcoa ( AA ), which closed with a 1.4% loss.
The S&P 500 Index (SPX) spent the majority of the session trading below the breakeven mark but closed little changed, down 2.8 points or 0.2%, to stay (narrowly) atop the 1,500 mark. The Nasdaq Composite (COMP) outperformed thanks to strength in some of its major components; the index closed 4.6 points higher, up 0.2%.
The CBOE Market Volatility Index (VIX) gained 5.3% on the day, as investors anticipated a week chock-full of news. After hitting an intraday peak of 13.91, the VIX closed up 0.7 point.
A Trader's Take :
"When you consider how supposedly overbought the market is here, not to have much of a pullback on a slow news day is rather impressive," observed Detrick. "We saw mixed news today on the economic front, with strong durable-goods data but lackluster pending housing sales numbers. Still," he continued, "Caterpillar ( CAT ) reported earnings and had some positive things to say regarding demand for the second half of 2013. Right now, it is all about outlooks, and hopefully CAT has started a trend that we'll see throughout earnings season."
3 Things to Know About Today's Market :
Apple Inc. (AAPL) rolled out iOS 6.1, the operating system's first major update since September. Included among the new features is 4G LTE support for additional carriers. Meanwhile, the stock powered almost 2.3% higher as investors emerged for a little bargain hunting. (CNET)
Fitch Ratings said a downgrade of the U.S. credit rating is no longer imminent , thanks to the recent debt-ceiling agreement in Washington. The agency said policymakers now have room to concentrate on "substantive fiscal policy choices," with the fiscal-cliff and debt-ceiling crises currently averted. (Reuters)
Durable goods orders rose 4.6% in December, topping the expected increase of 1.8%. Excluding transportation numbers, orders were 1.3% higher last month, above estimates for a 0.7% increase. (NASDAQ)
5 Stocks We Were Watching Today :
Nokia ( NOK ) strangle sellers expect limited volatility through the next several weeks.
Yahoo! ( YHOO ) option players expressed bullishness ahead of the company's earnings report.
Meanwhile, VMware (NYSE:VWM) saw put-buying activity before its earnings report.
LinkedIn (LNKD) weekly option buyers expect new highs are on the horizon.
Toyota Motor (TM) again ascended to first place among global automakers.
For a look at today's options movers and commodities activity, head to page 2.
Commodities :
Strong durable-goods orders at home and supply concerns in the Middle East helped boost oil futures to a 19-week high, although the front-month contract pared some of its intraday gains. March futures added 56 cents, or 0.6%, to settle at $96.44 per barrel. Gold futures continued their downward trek, however, as the U.S. dollar gained strength. The February contract dropped $3.70, or 0.2%, to end the day at $1,652.90 an ounce.
At the end of every market day, the staff at Schaeffer's Investment Research reviews the trading day in detail, covering major events and key market developments. Don't miss this critical, timely and insightful report. If you enjoyed today's edition of Market Recap, sign up here for free daily delivery straight to your inbox.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Bringing up the rear was Alcoa ( AA ), which closed with a 1.4% loss. 3 Things to Know About Today's Market : Apple Inc. (AAPL) rolled out iOS 6.1, the operating system's first major update since September. "It was a very slow day, without a lot of big news," noted Schaeffer's Senior Technical Strategist Ryan Detrick, CMT.
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Bringing up the rear was Alcoa ( AA ), which closed with a 1.4% loss. 3 Things to Know About Today's Market : Apple Inc. (AAPL) rolled out iOS 6.1, the operating system's first major update since September. In today's trading, the Dow Jones Industrial Average (DJI) pegged another new multi-year high out of the gate but spent much of the day slightly below breakeven, ultimately closing with a slight loss.
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Bringing up the rear was Alcoa ( AA ), which closed with a 1.4% loss. 3 Things to Know About Today's Market : Apple Inc. (AAPL) rolled out iOS 6.1, the operating system's first major update since September. In today's trading, the Dow Jones Industrial Average (DJI) pegged another new multi-year high out of the gate but spent much of the day slightly below breakeven, ultimately closing with a slight loss.
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Bringing up the rear was Alcoa ( AA ), which closed with a 1.4% loss. 3 Things to Know About Today's Market : Apple Inc. (AAPL) rolled out iOS 6.1, the operating system's first major update since September. After hitting an intraday peak of 13.91, the VIX closed up 0.7 point.
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1440.0
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2013-01-28 00:00:00 UTC
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Market Close Report: NASDAQ Composite index closes at 3,154.30 up 4.59 points
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AA
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https://www.nasdaq.com/articles/market-close-report-nasdaq-composite-index-closes-315430-459-points-2013-01-28
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nan
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Monday's session closes with the NASDAQ Composite Index at 3,154.30. The total shares traded for the NASDAQ was over 1.9 billion.
Advancers stocks led declining by 1.3 to 1 ratio. There were 1401 advancers and 1079 decliners for the day. On the NASDAQ Stock Exchange 108 stocks reached a 52 week high and 7 those reaching lows totaled. The most active, advancers, decliners, unusual volume and most active by dollar volume can be monitored intraday on the Most Active Stocks page.
The NASDAQ 100 index closed up .21% for the day; a total of 5.7 points. The current value is 2,742.43. Amazon.com, Inc. ( AMZN ) had the largest percent change down (-2.8%) while Sears Holdings Corporation ( SHLD ) had the largest percent change gain rising 6.21%.
The Dow Jones index closed down -.1% for the day; a total of -14.05 points. The current value is 13,881.93. Alcoa Inc. ( AA ) had the largest percent change down (-1.44%) while Caterpillar, Inc. ( CAT ) had the largest percent change gain rising 1.96%.
NASDAQ Market Wrap
As of 1/28/2013 4:44:01 PM
BILLIONS OF 1.9 NASDAQ SHARES TRADED TODAY 108 STOCKS REACHED A 52 WEEK HIGH 7 THOSE REACHING LOWS TOTALEDSears Holdings Corporation[SHLD]TOPS ADVANCERS LISTOF NASDAQ 100 % 6.21 INDEXSHLD ROSE
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alcoa Inc. ( AA ) had the largest percent change down (-1.44%) while Caterpillar, Inc. ( CAT ) had the largest percent change gain rising 1.96%. The NASDAQ 100 index closed up .21% for the day; a total of 5.7 points. The Dow Jones index closed down -.1% for the day; a total of -14.05 points.
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Alcoa Inc. ( AA ) had the largest percent change down (-1.44%) while Caterpillar, Inc. ( CAT ) had the largest percent change gain rising 1.96%. On the NASDAQ Stock Exchange 108 stocks reached a 52 week high and 7 those reaching lows totaled. Amazon.com, Inc. ( AMZN ) had the largest percent change down (-2.8%) while Sears Holdings Corporation ( SHLD ) had the largest percent change gain rising 6.21%.
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Alcoa Inc. ( AA ) had the largest percent change down (-1.44%) while Caterpillar, Inc. ( CAT ) had the largest percent change gain rising 1.96%. On the NASDAQ Stock Exchange 108 stocks reached a 52 week high and 7 those reaching lows totaled. The most active, advancers, decliners, unusual volume and most active by dollar volume can be monitored intraday on the Most Active Stocks page.
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Alcoa Inc. ( AA ) had the largest percent change down (-1.44%) while Caterpillar, Inc. ( CAT ) had the largest percent change gain rising 1.96%. There were 1401 advancers and 1079 decliners for the day. The NASDAQ 100 index closed up .21% for the day; a total of 5.7 points.
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1441.0
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2013-01-28 00:00:00 UTC
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U.S. Steel Earnings Could Be Weak But Outlook Is Improving
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AA
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https://www.nasdaq.com/articles/us-steel-earnings-could-be-weak-outlook-improving-2013-01-28
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nan
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nan
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U.S. Steel ( X ) will announce its fourth quarter earnings on Tuesday, January 29. We expect weaker revenues and profits compared to Q3 2012. The economic environment in Europe remains challenging and the U.S. economy is recovering slowly though the automobile and construction sectors are showing encouraging trends.
China, on the other hand, is beginning to look good due to the funds provided by the government for infrastructure creation. However, those benefits will be only be realized in the first quarter of 2013 and beyond. Higher demand for steel from China could cause the steel prices to rise, resulting in higher revenues for U.S. Steel. Also, a new phenomenon being witnessed is the expansion in production capacity of steel spurred by the shale gas revolution. Cheap natural gas is reducing cost of production for steelmakers by acting as a substitute for coal in purifying iron ore.
The overall effect of all these factors, however, has to take into account the demand-supply dynamic. Currently, there are huge production surpluses in China and Europe, and imported steel is still coming into the U.S. in large quantities. The prices of steel may thus stay depressed in the face of a supply glut, negating advantages of lower costs and higher future demand.
United States Steel Corporation is an integrated steel maker with a steel making capacity of around 30 million tons, and a majority of its operations are located in North America and Eastern Europe. Flat-rolled products, tubular products and U.S. Steel Europe (USSE) are the company's three main reporting segments.
See Full Analysis of U.S. Steel Here
Prices Will Weigh On Earnings
We expect average realized prices to decline across the segments as steel prices on the London Metal Exchange (LME) are trending lower compared to the previous quarter. The ongoing European debt crisis, slow Chinese growth in the previous quarter and mixed reports about the U.S. economy have contributed to the decline in steel prices on LME. (( Steel Billet Prices , LME))
We expect the company's margins to decline mainly on steel pricing concerns and higher costs owing to higher iron ore prices in the previous quarter. However, the company is looking at low natural gas prices to cushion the impact. We expect the tubular steel segment to have performed reasonably well due to demand from the oil and gas exploration industry. However, given the typically lower capital expenditure budgets of energy companies in the fourth quarter of any year, we don't expect a stellar performance.
Looking Ahead
European shipments will continue to decline as the Eurozone is still reeling with overcapacity in the industry. According to a company presentation given in November, U.S. Steel has formed a joint venture with Kobe Steel to produce light, ultra-high strength steel to be used in automobile manufacturing. This grade of steel is designed to meet the fuel efficiency requirements for automobiles in the years ahead. Production is expected to begin in Q1 2013.
The company is looking to sell its steel operations in Slovakia where it operates through its subsidiary U.S. Steel Kosice (USSK). It has reportedly been in negotiations with the Slovakian government for the same over the last few days. The Slovakian facility produces 5 million tonnes of steel. If the sale of the Slovakian business goes through, it will end U.S. Steel's presence in Europe. It has already sold its loss-making Serbian operations in January this year. We think that the major factors driving U.S. Steel's decision to sell the Slovakian business are the bleak economic outlook in Europe and the potential financial liabilities it may incur on account of new environmental regulations to be enforced by January 2013.
U.S. Steel estimated in its latest 10-Q report that it will have to spend $350-400 million by 2016 to comply with new European Union ( EU ) environmental mandates that the Slovak Republic must adopt by January. The new laws will also increase operating costs which U.S. Steel says it cannot estimate right now.
We think that it is a bit early to estimate the overall impact of the shale gas revolution on U.S. Steel. Shale exploration increases the demand for tubular steel products, and subsequent cheap natural gas prices help steel companies by acting as a substitute for coal. So at first glance this should help both revenues and lower costs.
However, cheap natural gas also encourages capacity expansion by steel companies, leading to excess capacity and possibly lower prices. The steel prices in the U.S. already bear the brunt of high quantities of imports, particularly from China where iron ore is cheap. A supply glut might cause prices to stay low even if demand from China picks up.
We have a price estimate of $23 for U.S. Steel which will be revised after the fourth quarter earnings results.
Understand on Trefis how a company's products impact its stock price
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The ongoing European debt crisis, slow Chinese growth in the previous quarter and mixed reports about the U.S. economy have contributed to the decline in steel prices on LME. We think that the major factors driving U.S. Steel's decision to sell the Slovakian business are the bleak economic outlook in Europe and the potential financial liabilities it may incur on account of new environmental regulations to be enforced by January 2013. U.S. Steel estimated in its latest 10-Q report that it will have to spend $350-400 million by 2016 to comply with new European Union ( EU ) environmental mandates that the Slovak Republic must adopt by January.
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(( Steel Billet Prices , LME)) We expect the company's margins to decline mainly on steel pricing concerns and higher costs owing to higher iron ore prices in the previous quarter. Shale exploration increases the demand for tubular steel products, and subsequent cheap natural gas prices help steel companies by acting as a substitute for coal. However, cheap natural gas also encourages capacity expansion by steel companies, leading to excess capacity and possibly lower prices.
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Higher demand for steel from China could cause the steel prices to rise, resulting in higher revenues for U.S. Steel. See Full Analysis of U.S. Steel Here Prices Will Weigh On Earnings We expect average realized prices to decline across the segments as steel prices on the London Metal Exchange (LME) are trending lower compared to the previous quarter. (( Steel Billet Prices , LME)) We expect the company's margins to decline mainly on steel pricing concerns and higher costs owing to higher iron ore prices in the previous quarter.
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We expect the tubular steel segment to have performed reasonably well due to demand from the oil and gas exploration industry. Shale exploration increases the demand for tubular steel products, and subsequent cheap natural gas prices help steel companies by acting as a substitute for coal. We have a price estimate of $23 for U.S. Steel which will be revised after the fourth quarter earnings results.
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1442.0
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2013-01-24 00:00:00 UTC
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Market Close Report: NASDAQ trading volume joins the top ten ranking for the year. NASDAQ Composite Index closes at 3,130.38
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AA
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https://www.nasdaq.com/articles/market-close-report-nasdaq-trading-volume-joins-top-ten-ranking-year-nasdaq-composite-65
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nan
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nan
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Today's session closes with the NASDAQ Composite Index volume reaching the 10th place in the top ten list for this year. The last time the index closed above 2.01 billion shares was on 00 Thu 2013. The total shares traded for the NASDAQ was over 2.02 billion.
Advancers stocks led declining by 1.25 to 1 ratio. There were 1374 advancers and 1103 decliners for the day. On the NASDAQ Stock Exchange 111 stocks reached a 52 week high and 5 those reaching lows totaled. The most active, advancers, decliners, unusual volume and most active by dollar volume can be monitored intraday on the Most Active Stocks page.
The NASDAQ 100 index closed down -1.4% for the day; a total of -38.64 points. The current value is 2,723.53. Apple Inc. ( AAPL ) had the largest percent change down (-12.35%) while F5 Networks, Inc. ( FFIV ) had the largest percent change gain rising 4.46%.
The Dow Jones index closed up .33% for the day; a total of 46 points. The current value is 13,825.33. Alcoa Inc. ( AA ) had the largest percent change down (-1.2%) while Cisco Systems, Inc. ( CSCO ) had the largest percent change gain rising 1.94%.
NASDAQ Market Wrap
As of 1/24/2013 4:44:01 PM
NASDAQ COMPOSITE INDEX 10th VOLUME MILESTONE2.02 billion JOINS 2013TOP TEN 111 STOCKS REACHED A 52 WEEK HIGH 5 THOSE REACHING LOWS TOTALEDF5 Networks, Inc.[FFIV]TOPS ADVANCERS LISTOF NASDAQ 100 % 4.46 INDEXFFIV ROSE
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. ( AAPL ) had the largest percent change down (-12.35%) while F5 Networks, Inc. ( FFIV ) had the largest percent change gain rising 4.46%. Alcoa Inc. ( AA ) had the largest percent change down (-1.2%) while Cisco Systems, Inc. ( CSCO ) had the largest percent change gain rising 1.94%. Today's session closes with the NASDAQ Composite Index volume reaching the 10th place in the top ten list for this year.
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Apple Inc. ( AAPL ) had the largest percent change down (-12.35%) while F5 Networks, Inc. ( FFIV ) had the largest percent change gain rising 4.46%. Alcoa Inc. ( AA ) had the largest percent change down (-1.2%) while Cisco Systems, Inc. ( CSCO ) had the largest percent change gain rising 1.94%. On the NASDAQ Stock Exchange 111 stocks reached a 52 week high and 5 those reaching lows totaled.
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Apple Inc. ( AAPL ) had the largest percent change down (-12.35%) while F5 Networks, Inc. ( FFIV ) had the largest percent change gain rising 4.46%. Alcoa Inc. ( AA ) had the largest percent change down (-1.2%) while Cisco Systems, Inc. ( CSCO ) had the largest percent change gain rising 1.94%. On the NASDAQ Stock Exchange 111 stocks reached a 52 week high and 5 those reaching lows totaled.
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Apple Inc. ( AAPL ) had the largest percent change down (-12.35%) while F5 Networks, Inc. ( FFIV ) had the largest percent change gain rising 4.46%. Alcoa Inc. ( AA ) had the largest percent change down (-1.2%) while Cisco Systems, Inc. ( CSCO ) had the largest percent change gain rising 1.94%. There were 1374 advancers and 1103 decliners for the day.
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1443.0
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2013-01-15 00:00:00 UTC
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Buying into Alcoa, Arnold Van Den Berg and Insiders
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AA
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https://www.nasdaq.com/articles/buying-alcoa-arnold-van-den-berg-and-insiders-2013-01-15
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nan
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nan
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One of Guru Arnold Van Den Berg 's fourth quarter new buys was aluminum producer, Alcoa Inc. ( AA ). He purchased 1,492,980 shares for an average price of $9, the stock close to its three-year low of $8.01.
Days ago, Alcoa reported two insider buys from its directors, Ratan Tata and Martin Sorrell. Both Sorrell and Tata were active in trading the company's shares in 2012. Whether Van Den Berg followed the lead of insiders in buying into Alcoa, or vice versa, it looks like Alcoa has a pretty active insider trade history to begin with.
Of course, as GuruFocus has mentioned before, when Gurus join insiders in buying into certain stocks, it's good news.
Since 2007, Director Tata has purchased almost 30,000 shares of Alcoa ( Market Overview ). Tata was elected as board director about five years ago, and was the head of one of India's largest business conglomerates, the Tata Group, before retiring in December.
About a year ago, Alcoa elected Sorrell to its board of directors, and has acquired a little over 8,000 shares of Alcoa since then. Sorrell is the founder and CEO of WPP, large advertising and marketing services group. ( Market Overview )
Since the year started, Alcoa has reported one sell from Executive Vice President Olivier Jarrault, who eliminated 16,000 shares on Jan. 10.
For Alcoa, share buys have been more prevalent in recent quarters among insiders, over sells. Its stock reached a three-year peak in 2011 when it sold for about $18. Today, the stock trades at $8.90.
AA data by GuruFocus.com
When Alcoa reported its fourth quarter earnings on Jan. 8, it revealed that the company met its year-end expectations and that it anticipates that global demand for aluminum will grow 7 percent this year. At this rate, the company forecasts that global aluminum demand will double by year 2020.
While it reported that income from continuing operations in 2012 was $191 million, down 12 percent from the previous year, Alcoa hit record profitability, delivering $1.3 billion in productivity and overhead improvements, while cutting its debt and maintaining its cash position. (View the company's 10-Year Financials)
The beginning of a new year for Alcoa was not only met by Guru and insider buys, but also a reshuffling of its executive team.
Alcoa Chief Financial Officer Charles D. McLane announced his retirement and will be replaced by William Oplinger, COO of Alcoa's primary-products business unit, taking effect April 1.
President of Alcoa Forgins and Extrusions has been named COO of Alcoa Investment Castings, Forgings and Extrusions on Jan 9.
And lastly, Engineered Products Controller, Ken Giacobbe has been appointed CFO of Alcoa's Engineered Products and Solutions.
None of the mentioned insiders have record of previous trading of Alcoa shares, according to the site's database.
Alcoa is ranked one star in Business Predictability, 5 in Financial Strength and 4 in Profitability and Growth. The company remains 1.43 percent of Van Den Berg's portfolio.
Other Gurus who have stakes in the company include Manning & Napier Advisors Inc., Mario Gabelli and John Burbank.
View Arnold Van Den Berg's fourth quarter buys here. Also view Van Den Berg's stock picks, his undervalued stocks, high-yield companies and top growth stocks.
Become a GuruFocus Premium Member!
GuruFocus' long list of Premium Membership perks provides many opportunities to follow your favorite Gurus and stocks more closely. It also gives you a chance to check out the new features we launched in 2013! If you are not a Premium Member yet, we invite you for a 7-Day Free Trial.About GuruFocus: GuruFocus.com tracks the stocks picks and portfolio holdings of the world's best investors. This value investing site offers stock screeners and valuation tools. And publishes daily articles tracking the latest moves of the world's best investors. GuruFocus also provides promising stock ideas in 3 monthly newsletters sent to Premium Members .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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AA data by GuruFocus.com When Alcoa reported its fourth quarter earnings on Jan. 8, it revealed that the company met its year-end expectations and that it anticipates that global demand for aluminum will grow 7 percent this year. One of Guru Arnold Van Den Berg 's fourth quarter new buys was aluminum producer, Alcoa Inc. ( AA ). ( Market Overview ) Since the year started, Alcoa has reported one sell from Executive Vice President Olivier Jarrault, who eliminated 16,000 shares on Jan. 10.
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One of Guru Arnold Van Den Berg 's fourth quarter new buys was aluminum producer, Alcoa Inc. ( AA ). AA data by GuruFocus.com When Alcoa reported its fourth quarter earnings on Jan. 8, it revealed that the company met its year-end expectations and that it anticipates that global demand for aluminum will grow 7 percent this year. View Arnold Van Den Berg's fourth quarter buys here.
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One of Guru Arnold Van Den Berg 's fourth quarter new buys was aluminum producer, Alcoa Inc. ( AA ). AA data by GuruFocus.com When Alcoa reported its fourth quarter earnings on Jan. 8, it revealed that the company met its year-end expectations and that it anticipates that global demand for aluminum will grow 7 percent this year. Whether Van Den Berg followed the lead of insiders in buying into Alcoa, or vice versa, it looks like Alcoa has a pretty active insider trade history to begin with.
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One of Guru Arnold Van Den Berg 's fourth quarter new buys was aluminum producer, Alcoa Inc. ( AA ). AA data by GuruFocus.com When Alcoa reported its fourth quarter earnings on Jan. 8, it revealed that the company met its year-end expectations and that it anticipates that global demand for aluminum will grow 7 percent this year. Since 2007, Director Tata has purchased almost 30,000 shares of Alcoa ( Market Overview ).
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1444.0
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2013-01-14 00:00:00 UTC
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Stock Market News for January 14, 2013 - Market News
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AA
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https://www.nasdaq.com/articles/stock-market-news-for-january-14-2013-market-news-2013-01-14
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nan
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nan
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Benchmarks ended flat on Friday as investors were unwillingly to take positions ahead of earnings reports from major companies. But benchmarks still finished in the green for the second consecutive week. The S&P 500 is a fraction below its second highest level, achieved last Thursday in more than five years. The consumer staples sector was the biggest gainer whereas the industrial sector was the major loser among the S&P 500 industry groups.
The Dow Jones Industrial Average (DJI) gained 0.1% to close the day at 13,488.43. The Standard & Poor 500 (S&P 500) slipped marginally, by 0.07 point to finish Friday's trading session at 1,472.05. The tech-laden Nasdaq Composite Index surged 0.1% to end at 3,125.64.The fear-gauge CBOE Volatility Index (VIX) lost 1.0% to settle at 13.36. Consolidated volumes on the New York Stock Exchange, American Stock Exchange and Nasdaq were roughly 5.93 billion shares, significantly lower than 2012's daily average of 6.42 billion shares. Advancing stocks outpaced decliners on the NYSE; as for 49% stocks that rose, 47% moved lower.
The blue-chip index gained 0.4%, S&P 500 surged 0.4% and Nasdaq added 0.8% over the week. Benchmarks declined during the first two trading days in the previous week as investors were concerned about fourth-quarter corporate earnings. But in the later part of the week all major indices gained, propelled higher by an encouraging start to the earnings season and a positive outlook from Alcoa Inc. (NYSE: AA ). Encouraging reports from China and Europe also boosted investor confidence and helped the S&P 500 achieve its second highest level since December 2007.
The first major financial company, Wells Fargo & Company (NYSE: WFC ) reported its quarterly results on Friday. The company's profits came in above the Street's estimates and revenues were in line with analyst estimates. The company's profits increased 25% in the fourth-quarter. However, shares declined 0.8% following the results. Investors were worried about the net interest margin which declined during the fourth-quarter. The company also made less money from its mortgage business compared to the third-quarter.
Financial stocks declines after Wells Fargo's results. The Financial Select Sector SPDR (XLF) declined 0.2%. Stocks such as JPMorgan Chase & Co. (NYSE: JPM ), Citigroup Inc. (NYSE: C ), Goldman Sachs Group, Inc. (NYSE: GS ), PNC Financial Services (NYSE: PNC ) and U.S. Bancorp (NYSE: USB ) lost 0.02%, 1.1%, 0.2%, 1.1% and 0.4%, respectively.
After Wells Fargo, the Street will receive a batch of reports from other major financial companies this week. JPMorgan Chase, Citigroup, Bank of America Corp (NYSE: BAC ) and Goldman Sachs Group are slated to report their quarterly results. Last year, the financial sector was the best performing sector among the S&P 500 industry groups and surged 26%. Analysts are expecting that fourth-quarter earnings will come in above the previous quarter's paltry growth of 0.1%.
The trade deficit move up to $48.7 billion in November from the revised October figure of $42.1 billion. This was above consensus estimates of $41.5 billion. The U.S. Census Bureau and the U.S. Bureau of Economic Analysis said November exports were recorded $1.7 billion more than October exports of $180.8 billion whereas imports increased $8.4 billion more than October imports of $222.9 billion.
The consumer staples sector had a good run yesterday and the Consumer Staples Select Sect. SPDR (XLP) gained 0.5%. Stocks such as Wal-Mart Stores, Inc. (NYSE: WMT ), PepsiCo, Inc. (NYSE: PEP ), Kraft Foods Group Inc (NASDAQ: KRFT ), Walgreen Company (NYSE: WAG ) and Altria Group, Inc. (NYSE: MO ) surged 0.4%, 0.1%, 0.8%, 1.4% and 0.7%, respectively.
ALCOA INC (AA): Free Stock Analysis Report
BANK OF AMER CP (BAC): Free Stock Analysis Report
CITIGROUP INC (C): Free Stock Analysis Report
GOLDMAN SACHS (GS): Free Stock Analysis Report
JPMORGAN CHASE (JPM): Free Stock Analysis Report
KRAFT FOODS GRP (KRFT): Free Stock Analysis Report
ALTRIA GROUP (MO): Free Stock Analysis Report
PEPSICO INC (PEP): Free Stock Analysis Report
PNC FINL SVC CP (PNC): Free Stock Analysis Report
US BANCORP (USB): Free Stock Analysis Report
WALGREEN CO (WAG): Free Stock Analysis Report
WELLS FARGO-NEW (WFC): Free Stock Analysis Report
WAL-MART STORES (WMT): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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But in the later part of the week all major indices gained, propelled higher by an encouraging start to the earnings season and a positive outlook from Alcoa Inc. (NYSE: AA ). ALCOA INC (AA): Free Stock Analysis Report BANK OF AMER CP (BAC): Free Stock Analysis Report CITIGROUP INC (C): Free Stock Analysis Report GOLDMAN SACHS (GS): Free Stock Analysis Report JPMORGAN CHASE (JPM): Free Stock Analysis Report KRAFT FOODS GRP (KRFT): Free Stock Analysis Report ALTRIA GROUP (MO): Free Stock Analysis Report PEPSICO INC (PEP): Free Stock Analysis Report PNC FINL SVC CP (PNC): Free Stock Analysis Report US BANCORP (USB): Free Stock Analysis Report WALGREEN CO (WAG): Free Stock Analysis Report WELLS FARGO-NEW (WFC): Free Stock Analysis Report WAL-MART STORES (WMT): Free Stock Analysis Report To read this article on Zacks.com click here. Benchmarks ended flat on Friday as investors were unwillingly to take positions ahead of earnings reports from major companies.
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ALCOA INC (AA): Free Stock Analysis Report BANK OF AMER CP (BAC): Free Stock Analysis Report CITIGROUP INC (C): Free Stock Analysis Report GOLDMAN SACHS (GS): Free Stock Analysis Report JPMORGAN CHASE (JPM): Free Stock Analysis Report KRAFT FOODS GRP (KRFT): Free Stock Analysis Report ALTRIA GROUP (MO): Free Stock Analysis Report PEPSICO INC (PEP): Free Stock Analysis Report PNC FINL SVC CP (PNC): Free Stock Analysis Report US BANCORP (USB): Free Stock Analysis Report WALGREEN CO (WAG): Free Stock Analysis Report WELLS FARGO-NEW (WFC): Free Stock Analysis Report WAL-MART STORES (WMT): Free Stock Analysis Report To read this article on Zacks.com click here. But in the later part of the week all major indices gained, propelled higher by an encouraging start to the earnings season and a positive outlook from Alcoa Inc. (NYSE: AA ). Stocks such as JPMorgan Chase & Co. (NYSE: JPM ), Citigroup Inc. (NYSE: C ), Goldman Sachs Group, Inc. (NYSE: GS ), PNC Financial Services (NYSE: PNC ) and U.S. Bancorp (NYSE: USB ) lost 0.02%, 1.1%, 0.2%, 1.1% and 0.4%, respectively.
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ALCOA INC (AA): Free Stock Analysis Report BANK OF AMER CP (BAC): Free Stock Analysis Report CITIGROUP INC (C): Free Stock Analysis Report GOLDMAN SACHS (GS): Free Stock Analysis Report JPMORGAN CHASE (JPM): Free Stock Analysis Report KRAFT FOODS GRP (KRFT): Free Stock Analysis Report ALTRIA GROUP (MO): Free Stock Analysis Report PEPSICO INC (PEP): Free Stock Analysis Report PNC FINL SVC CP (PNC): Free Stock Analysis Report US BANCORP (USB): Free Stock Analysis Report WALGREEN CO (WAG): Free Stock Analysis Report WELLS FARGO-NEW (WFC): Free Stock Analysis Report WAL-MART STORES (WMT): Free Stock Analysis Report To read this article on Zacks.com click here. But in the later part of the week all major indices gained, propelled higher by an encouraging start to the earnings season and a positive outlook from Alcoa Inc. (NYSE: AA ). Stocks such as JPMorgan Chase & Co. (NYSE: JPM ), Citigroup Inc. (NYSE: C ), Goldman Sachs Group, Inc. (NYSE: GS ), PNC Financial Services (NYSE: PNC ) and U.S. Bancorp (NYSE: USB ) lost 0.02%, 1.1%, 0.2%, 1.1% and 0.4%, respectively.
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But in the later part of the week all major indices gained, propelled higher by an encouraging start to the earnings season and a positive outlook from Alcoa Inc. (NYSE: AA ). ALCOA INC (AA): Free Stock Analysis Report BANK OF AMER CP (BAC): Free Stock Analysis Report CITIGROUP INC (C): Free Stock Analysis Report GOLDMAN SACHS (GS): Free Stock Analysis Report JPMORGAN CHASE (JPM): Free Stock Analysis Report KRAFT FOODS GRP (KRFT): Free Stock Analysis Report ALTRIA GROUP (MO): Free Stock Analysis Report PEPSICO INC (PEP): Free Stock Analysis Report PNC FINL SVC CP (PNC): Free Stock Analysis Report US BANCORP (USB): Free Stock Analysis Report WALGREEN CO (WAG): Free Stock Analysis Report WELLS FARGO-NEW (WFC): Free Stock Analysis Report WAL-MART STORES (WMT): Free Stock Analysis Report To read this article on Zacks.com click here. Benchmarks declined during the first two trading days in the previous week as investors were concerned about fourth-quarter corporate earnings.
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1445.0
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2013-01-11 00:00:00 UTC
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Stock Market News for January 11, 2013 - Market News
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AA
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https://www.nasdaq.com/articles/stock-market-news-for-january-11-2013-market-news-2013-01-11
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nan
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nan
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Encouraging reports from China and Europe lifted global investor sentiment, helping benchmarks finish in the green on Thursday. Investor optimism about global growth has propelled the S&P 500 to a new five year high. Meanwhile, the number of Americans filing for the unemployment benefits increased during the previous week. Despite a positive global outlook housing stocks declined yesterday. The financial sector emerged as the biggest gainer among the S&P 500 industry groups.
The Dow Jones Industrial Average (DJI) gained 0.6% to close the day at 13,471.22. The Standard & Poor 500 (S&P 500) added 0.8% to finish yesterday's trading session at 1,472.12. The tech-laden Nasdaq Composite Index surged 0.5% to end at 3,121.76.The fear-gauge CBOE Volatility Index (VIX) lost 2.3% to settle at 13.49. Consolidated volumes on the New York Stock Exchange, American Stock Exchange and Nasdaq were roughly 6.77 billion shares, higher than the 2012 daily average of 6.42 billion shares. Advancing stocks easily outpaced decliners on the NYSE; as for 65% stocks that rose, only 31% moved lower.
Benchmarks finished in the green for the second consecutive day. After an encouraging start to the fourth-quarter earnings season on Wednesday, benchmarks received another boost following optimism about global growth pushed. Encouraging international reports helped the S&P 500 touch its second highest level since December 2007. The index is only 93 points below the all time high achieved in October 2007.
A report from China, the world's second largest economy revealed exports grew at the quickest rate in seven months following seven consecutive disappointing quarters. China exports expanded 14.1% on a year on year basis in December, whereas exports increased 6%. Despite positive trade data from China for the last month of the year, the country has missed its initial targets of 10% growth, both in exports and imports by a big margin. According to Zheng Yusheng, a spokesperson for the customs office: "China trade still faces uncertainties in 2013." "But we expect the trade situation will be relatively better compared to 2012," he added.
European Central Bank President Mario Draghi said the Euro Zone will continue to struggle in 2013 but conditions will improve slowly in the later part of the year. He also said:"Several ... indicators have broadly stabilized, albeit at low levels and financial market confidence has improved significantly."
Meanwhile, initial claims surged for the second consecutive week. According to the U.S. Department of Labor the advance figure for seasonally adjusted initial claims increased 4,000 to 371,000 for the week ending January 5 from prior week's revised figure of 367,000. This was below consensus estimates of 365,000. Meanwhile, the U.S. Census Bureau revealed that wholesale inventories increased 0.6% in November to $498.9 billion.
The fourth-quarter earnings season has started on a positive note following encouraging quarterly results and a positive outlook from Alcoa Inc (NYSE: AA ). The company predicted stronger demand for aluminum in 2013. According to market experts, investors will closely examine the sales outlook of companies this quarter. Wells Fargo & Company (NYSE: WFC ) is scheduled to report its quarterly results on Friday.
Housing stocks took a hit and the SPDR S&P Homebuilders (XHB) lost 0.1%. Stocks such as PulteGroup, Inc. (NYSE: PHM ), M.D.C. Holdings, Inc. (NYSE: MDC ), D.R. Horton, Inc. (NYSE: DHI ), The Ryland Group, Inc. (NYSE: RYL ) and KB Home (NYSE: KBH ) slipped 0.4%, 1.0%, 1.4%, 1.4% and 0.2%, respectively.
Financials were the biggest gainer among the S&P 500 industry groups and the Financial Select Sector SPDR (XLF) gained 1.2%. Stocks such as JPMorgan Chase & Co. (NYSE: JPM ), Wells Fargo & Company (NYSE: WFC ), Goldman Sachs Group, Inc. (NYSE: GS ), Citigroup Inc. (NYSE: C ) and PNC Financial Services (NYSE: PNC ) jumped 1.5%, 2.0%, 2.3%, 1.9% and 1.6%, respectively.
ALCOA INC (AA): Free Stock Analysis Report
CITIGROUP INC (C): Free Stock Analysis Report
D R HORTON INC (DHI): Free Stock Analysis Report
GOLDMAN SACHS (GS): Free Stock Analysis Report
JPMORGAN CHASE (JPM): Free Stock Analysis Report
KB HOME (KBH): Free Stock Analysis Report
MDC HLDGS (MDC): Free Stock Analysis Report
PULTE GROUP ONC (PHM): Free Stock Analysis Report
PNC FINL SVC CP (PNC): Free Stock Analysis Report
RYLAND GRP INC (RYL): Free Stock Analysis Report
WELLS FARGO-NEW (WFC): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The fourth-quarter earnings season has started on a positive note following encouraging quarterly results and a positive outlook from Alcoa Inc (NYSE: AA ). ALCOA INC (AA): Free Stock Analysis Report CITIGROUP INC (C): Free Stock Analysis Report D R HORTON INC (DHI): Free Stock Analysis Report GOLDMAN SACHS (GS): Free Stock Analysis Report JPMORGAN CHASE (JPM): Free Stock Analysis Report KB HOME (KBH): Free Stock Analysis Report MDC HLDGS (MDC): Free Stock Analysis Report PULTE GROUP ONC (PHM): Free Stock Analysis Report PNC FINL SVC CP (PNC): Free Stock Analysis Report RYLAND GRP INC (RYL): Free Stock Analysis Report WELLS FARGO-NEW (WFC): Free Stock Analysis Report To read this article on Zacks.com click here. A report from China, the world's second largest economy revealed exports grew at the quickest rate in seven months following seven consecutive disappointing quarters.
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ALCOA INC (AA): Free Stock Analysis Report CITIGROUP INC (C): Free Stock Analysis Report D R HORTON INC (DHI): Free Stock Analysis Report GOLDMAN SACHS (GS): Free Stock Analysis Report JPMORGAN CHASE (JPM): Free Stock Analysis Report KB HOME (KBH): Free Stock Analysis Report MDC HLDGS (MDC): Free Stock Analysis Report PULTE GROUP ONC (PHM): Free Stock Analysis Report PNC FINL SVC CP (PNC): Free Stock Analysis Report RYLAND GRP INC (RYL): Free Stock Analysis Report WELLS FARGO-NEW (WFC): Free Stock Analysis Report To read this article on Zacks.com click here. The fourth-quarter earnings season has started on a positive note following encouraging quarterly results and a positive outlook from Alcoa Inc (NYSE: AA ). Horton, Inc. (NYSE: DHI ), The Ryland Group, Inc. (NYSE: RYL ) and KB Home (NYSE: KBH ) slipped 0.4%, 1.0%, 1.4%, 1.4% and 0.2%, respectively.
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ALCOA INC (AA): Free Stock Analysis Report CITIGROUP INC (C): Free Stock Analysis Report D R HORTON INC (DHI): Free Stock Analysis Report GOLDMAN SACHS (GS): Free Stock Analysis Report JPMORGAN CHASE (JPM): Free Stock Analysis Report KB HOME (KBH): Free Stock Analysis Report MDC HLDGS (MDC): Free Stock Analysis Report PULTE GROUP ONC (PHM): Free Stock Analysis Report PNC FINL SVC CP (PNC): Free Stock Analysis Report RYLAND GRP INC (RYL): Free Stock Analysis Report WELLS FARGO-NEW (WFC): Free Stock Analysis Report To read this article on Zacks.com click here. The fourth-quarter earnings season has started on a positive note following encouraging quarterly results and a positive outlook from Alcoa Inc (NYSE: AA ). Despite positive trade data from China for the last month of the year, the country has missed its initial targets of 10% growth, both in exports and imports by a big margin.
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The fourth-quarter earnings season has started on a positive note following encouraging quarterly results and a positive outlook from Alcoa Inc (NYSE: AA ). ALCOA INC (AA): Free Stock Analysis Report CITIGROUP INC (C): Free Stock Analysis Report D R HORTON INC (DHI): Free Stock Analysis Report GOLDMAN SACHS (GS): Free Stock Analysis Report JPMORGAN CHASE (JPM): Free Stock Analysis Report KB HOME (KBH): Free Stock Analysis Report MDC HLDGS (MDC): Free Stock Analysis Report PULTE GROUP ONC (PHM): Free Stock Analysis Report PNC FINL SVC CP (PNC): Free Stock Analysis Report RYLAND GRP INC (RYL): Free Stock Analysis Report WELLS FARGO-NEW (WFC): Free Stock Analysis Report To read this article on Zacks.com click here. Investor optimism about global growth has propelled the S&P 500 to a new five year high.
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1446.0
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2013-01-10 00:00:00 UTC
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Alcoa Reports Q4 Profit As Long Term Demand Growth Is On Track
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AA
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https://www.nasdaq.com/articles/alcoa-reports-q4-profit-long-term-demand-growth-track-2013-01-10
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Alcoa ( AA ) released its fourth quarter earnings on Tuesday. The company's reported revenues of $5.9 billion were higher 1% sequentially on better aluminum pricing but down 2% compared to last year. Despite 5% higher aluminum prices sequentially at around $125 per tonne, weaker demand from packaging, industrial, and commercial transportation markets impacted on results. While weak demand from the packaging segment can be attributed to seasonality, we think that the demand trends in the industrial segment and the commercial transportation segment are reflective of the general state of the economy.
Net income for the fourth quarter stood at $242 million compared to a net loss of $143 million in the previous quarter and $191 million in the fourth quarter of 2011. Full year net income was $191 million compared to $611 million in 2011.
Alcoa managed to reduce costs and the working capital cycle and increase productivity. It also monetized non-core or non-optimal assets to boost its liquidity position. We think that the larger goal was to maintain its investment grade rating which has been placed under review by Moody's. The company management also stressed its overriding focus on cash generation in order to keep debt at sustainable levels and be able to meet pension costs.
The company management pointed out what has already been known for some time: that the prices of aluminum on the London Metal Exchange (LME) are being heavily influenced by macroeconomic factors and sentiment rather than supply-demand fundamentals. What was noteworthy was that while data for primary aluminum showed a slight supply deficit, the supply-demand dynamic for alumina was shown to be in balance. The slight supply deficit for primary aluminum can't be causing the high volatility being witnessed in aluminum prices on the LME. (( LME Aluminum Price Graph , LME))
The realized price of aluminum for Alcoa fell by 12% year-over-year which impacted revenues by around $1 billion. The company charges a premium on LME benchmark prices and witnessed these premiums coming under pressure.
See Full Analysis for Alcoa Here
Productivity Related Improvements Offset Cost Escalations
Alcoa managed to increase the productivity of its operations and reduce costs. The company estimated that the benefits due to these amounted to $1.3 billion for the whole year. While overall operating costs increased this year, mainly on account of higher prices for natural gas, fuel oil and transportation costs, they were more than compensated for due to productivity related improvements. While additional cost escalation for the year amounted to $670 million, the value captured through productivity improvement amounted to $786 million. The additional value boosted the company's bottom line. Considering that Alcoa's net income for the full year stood at $191 million, it is a pretty significant contributor to profitability. Since it is only to be expected that in a weak economic scenario neither demand nor volumes sold would increase much, productivity would always be an important factor in determining profitability.
Automotive And Aerospace Segments
Alcoa witnessed robust global growth in the aerospace segment to the tune of 13-14%. The bulk of this growth came due to demand for commercial planes rather than civilian aircraft. Going forward, while Alcoa predicts a constant 9-10% growth rate in this segment, we think that some caution is warranted beyond a couple of years.
The company touts a large backlog of order for planes with Boeing and Airbus which might take up to 8 years to clear. However, we think that it is quite possible that the global macroeconomic scenario could throw a wrench in the works. If the macroeconomic sentiment weakens due to the Euro zone being unable to find a way out of its present mess or the U.S. failing to resolve its budget problems, economic growth may not pick up elsewhere. An example would be countries in Asia dependent on Europe as a major export destination. In the event of a prolonged slump, the airlines in Asia may opt to delay or cancel orders for their planes which in turn would slow down assembly lines temporarily at Boeing and Airbus. The U.S. fiscal deficit problems could also reduce defense spending on equipment drastically.
A fiscal cliff deal was reached and ratified at the beginning of 2013 and Alcoa stock prices received some boost. However, at this point it would too early to claim a positive long term gain. Manufacturers and the rest of the U.S. economy still face uncertainty on the debt ceiling, in addition to the delayed budget cuts. At best, it seems like the can has been kicked down the road.
The same caveats hold true for the automotive segment as well which is expected to grow by 4% next year in the most optimistic scenario. In the U.S., Alcoa is already expecting a drastic decrease in production in the commercial vehicles segment next year. The scenario in China is somewhat optimistic due to the infrastructure related spending being carried out by the government now. Alcoa is expecting a 12-19% growth rate in the automotive segment in China next year.
A potential area of growth could be the industrial gas turbine segment. Power plants in the U.S. are switching to natural gas from coal owing to the cheap prices of natural gas thanks to the shale gas revolution. Further encouragement is being provided by environmental regulations which mandate cuts in carbon emissions.
The demand from the packaging, building and construction sectors is expected to remain flat or increase marginally over the next year.
Long Term Demand Growth On Track
Assuming that macroeconomic downside scenarios mentioned above don't materialize, the demand growth for aluminum may actually exceeding Alcoa's expectations. In 2010, Alcoa forecast a doubling of demand by 2020 at a Compounded Annual Growth Rate ( CAGR ) of 6.5%. Over the last two years, demand has grown at a CAGR of 7% and the expected growth next year has been pegged at 7%.
Alcoa intends to grow its Global Rolled Products and Engineering Products and Services businesses since these produce value-added products and thus generate higher margins. It would be crucial for the company to reduce its debt to a sustainable level and bring it in line with its earnings in order to maintain its investment grade rating.
We have a Trefis price estimate for Alcoa of $10 which will be revised after the fourth quarter earnings results.
Understand How a Company's Products Impact its Stock at Trefis
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alcoa ( AA ) released its fourth quarter earnings on Tuesday. The company management pointed out what has already been known for some time: that the prices of aluminum on the London Metal Exchange (LME) are being heavily influenced by macroeconomic factors and sentiment rather than supply-demand fundamentals. If the macroeconomic sentiment weakens due to the Euro zone being unable to find a way out of its present mess or the U.S. failing to resolve its budget problems, economic growth may not pick up elsewhere.
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Alcoa ( AA ) released its fourth quarter earnings on Tuesday. Net income for the fourth quarter stood at $242 million compared to a net loss of $143 million in the previous quarter and $191 million in the fourth quarter of 2011. See Full Analysis for Alcoa Here Productivity Related Improvements Offset Cost Escalations Alcoa managed to increase the productivity of its operations and reduce costs.
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Alcoa ( AA ) released its fourth quarter earnings on Tuesday. See Full Analysis for Alcoa Here Productivity Related Improvements Offset Cost Escalations Alcoa managed to increase the productivity of its operations and reduce costs. While overall operating costs increased this year, mainly on account of higher prices for natural gas, fuel oil and transportation costs, they were more than compensated for due to productivity related improvements.
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Alcoa ( AA ) released its fourth quarter earnings on Tuesday. The slight supply deficit for primary aluminum can't be causing the high volatility being witnessed in aluminum prices on the LME. The additional value boosted the company's bottom line.
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1447.0
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2013-01-10 00:00:00 UTC
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Market Close Report: NASDAQ Composite index closes at 3,121.76 up 15.95 points
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AA
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https://www.nasdaq.com/articles/market-close-report-nasdaq-composite-index-closes-312176-1595-points-2013-01-10
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Thursday's session closes with the NASDAQ Composite Index at 3,121.76. The total shares traded for the NASDAQ was over 1.73 billion.
Advancers stocks led declining by 1.38 to 1 ratio. There were 1439 advancers and 1040 decliners for the day. On the NASDAQ Stock Exchange 95 stocks reached a 52 week high and 5 those reaching lows totaled. The most active, advancers, decliners, unusual volume and most active by dollar volume can be monitored intraday on the Most Active Stocks page.
The NASDAQ 100 index closed up .61% for the day; a total of 16.53 points. The current value is 2,744.18. Monster Beverage Corporation ( MNST ) had the largest percent change down (-3.12%) while Baidu, Inc. ( BIDU ) had the largest percent change gain rising 5.97%.
The Dow Jones index closed up .6% for the day; a total of 80.71 points. The current value is 13,471.22. Alcoa Inc. ( AA ) had the largest percent change down (-1.21%) while Bank of America Corporation ( BAC ) had the largest percent change gain rising 3.06%.
NASDAQ Market Wrap
As of 1/10/2013 4:44:01 PM
BILLIONS OF 1.73 NASDAQ SHARES TRADED TODAY 95 STOCKS REACHED A 52 WEEK HIGH 5 THOSE REACHING LOWS TOTALEDBaidu, Inc.[BIDU]TOPS ADVANCERS LISTOF NASDAQ 100 % 5.97 INDEXBIDU ROSE
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alcoa Inc. ( AA ) had the largest percent change down (-1.21%) while Bank of America Corporation ( BAC ) had the largest percent change gain rising 3.06%. Monster Beverage Corporation ( MNST ) had the largest percent change down (-3.12%) while Baidu, Inc. ( BIDU ) had the largest percent change gain rising 5.97%. The Dow Jones index closed up .6% for the day; a total of 80.71 points.
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Alcoa Inc. ( AA ) had the largest percent change down (-1.21%) while Bank of America Corporation ( BAC ) had the largest percent change gain rising 3.06%. On the NASDAQ Stock Exchange 95 stocks reached a 52 week high and 5 those reaching lows totaled. Monster Beverage Corporation ( MNST ) had the largest percent change down (-3.12%) while Baidu, Inc. ( BIDU ) had the largest percent change gain rising 5.97%.
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Alcoa Inc. ( AA ) had the largest percent change down (-1.21%) while Bank of America Corporation ( BAC ) had the largest percent change gain rising 3.06%. On the NASDAQ Stock Exchange 95 stocks reached a 52 week high and 5 those reaching lows totaled. The most active, advancers, decliners, unusual volume and most active by dollar volume can be monitored intraday on the Most Active Stocks page.
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Alcoa Inc. ( AA ) had the largest percent change down (-1.21%) while Bank of America Corporation ( BAC ) had the largest percent change gain rising 3.06%. There were 1439 advancers and 1040 decliners for the day. The NASDAQ 100 index closed up .61% for the day; a total of 16.53 points.
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1448.0
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2013-01-10 00:00:00 UTC
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Bulls Hold the Reins as Indexes Approach Multi-Year Highs
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AA
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https://www.nasdaq.com/articles/bulls-hold-reins-indexes-approach-multi-year-highs-2013-01-10
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"The bears had their chance early, but in the end, the bulls once again took charge," summarized Schaeffer's Senior Technical Strategist Ryan Detrick, CMT. The Dow Jones Industrial Average (DJI) ended on a high note, closing near its intraday peak after marching steadily north during the second half of the trading day.
Continue reading for more on today's market, including :
3 entry points for a bullish Amazon.com ( AMZN ) trade, courtesy of Senior Options Strategist Tony Venosa, CMT.
Why buying option premium now "makes a lot of sense," according to Senior Trading Analyst Bryan Sapp.
How Wells Fargo ( WFC ) option traders were betting ahead of earnings.
plus...
Inertia at the Bank of England, bullish trading in Netflix ( NFLX ), and a forest-for-the-trees take in our Tweet of the day.
After a fleeting trek below breakeven in late-morning trading, the Dow Jones Industrial Average (DJI) powered higher the rest of the day, closing just off its intraday peak with a gain of 81 points, or 0.6%. The Dow is now fewer than 200 points away from overtaking its October peak. The index's rally was far-reaching, as 25 of the 30 components powered higher on the day. Pacing the advancing majority was Bank of America ( BAC ), which bounded back from yesterday's backslide with a 3.1% gain. On the flip side was Alcoa ( AA ), which responded to a brokerage downgrade with a 1.2% pullback.
The S&P 500 Index (SPX) got within a chip-shot of marking a new five-year high but settled for a gain of 11 points, or 0.8%. The Nasdaq Composite (COMP) slightly lagged its index brethren, advancing 16 points, or 0.5%.
The CBOE Market Volatility Index (VIX) avoided another multi-year low but did close off 0.3 point, or 2.4%, slightly off its intraday low of 13.33.
A Trader's Take :
"Although there wasn't any one major driver on the day, we took another step in the right direction," asserted Detrick. "You want to see weakness early, followed by late-day buying. Plus, when small-caps and mid-caps make new all-time highs, it can't be that bad of a day. Also," Detrick added, "we are one day closer to [Schaeffer's Senior Equity Analyst] Joe Bell's first-ever live television appearance. He'll be on FOX Business Network tomorrow at 4:00 p.m. Eastern -- tune in and see how my boy does!"
3 Things to Know About Today's Market :
In a move that surprised very few, both the European Central Bank (ECB) and the Bank of England left their key interest rates unchanged at 0.75% and 0.5%, respectively. The latter also made no adjustments to its quantitative easing program, which currently stands at 375 billion pounds (roughly $604 billion). Of the 64 economists polled by Reuters, not one expected the Bank of England to change the interest rate or its commitment to the current stimulus program. Meanwhile, ECB President Mario Draghi was cautiously optimistic before the press, noting, "Several ... indicators have broadly stabilized ... and financial market confidence has improved significantly."
The Labor Department said initial jobless claims in the U.S. rose 4,000 to a seasonally adjusted 371,000 last week, disappointing economists who were expecting the number to retreat to 363,000. The number of continuing unemployment claims, meanwhile, did decline by 127,000 to 3.1 million, hitting a 4.5-year low. Elsewhere, wholesale inventories rose 0.6% in November to a seasonally adjusted $498.95 billion, the Commerce Department reported. This exceeded economists' expectations for a 0.3% rise, and marked the fifth consecutive increase in wholesale inventory levels.
The whiplash isn't over for Herbalife (HLF) watchers. Hedge-fund manager Daniel Loeb swooped in to the troubled company's rescue, taking a more than 8% stake in the company late Wednesday. Meanwhile, the firm's president appeared on CNBC this morning to refute activist investor Bill Ackman's harsh claims that the company is no more than a "pyramid scheme." After a flirtation with positive territory this morning, the stock settled modestly lower, off its intraday lows.
Plus ... The 2013 Oscar nominations were released today, and "Lincoln" led the way with 12 Academy Award nods, including best picture, best director for Steven Spielberg, and best actor for Daniel Day-Lewis, who tackled the titular role. Among the most high-profile snubs included directors Kathryn Bigelow, Quentin Tarantino, and Ben Affleck (for "Zero Dark Thirty," "Django Unchained," and "Argo," respectively), and -- once again -- Leonardo DiCaprio for his villainous turn in "Django."
Today's Top Tweet :
"...while the indices are consolidating, take advantage of individual stocks. You have to put in the work to find them."
@jfahmy, (Joseph Fahmy), 2:23 p.m.
5 Stocks We Were Watching Today :
Facebook (FB) saw a surge in bullish options volume , as speculators bought calls and sold puts.
Netflix ( NFLX ) saw a rush of weekly options activity as bullish speculators gambled on a short-term pop higher.
Short-term Intel (INTC) speculators placed bets against the semiconductor name's recent uptrend.
ARM Holdings (ARMH) was targeted by put buyers, despite its recent visit to a new multi-year high.
Microsoft (MSFT) was downgraded this morning at Morgan Stanley.
Question of the Day :
Q : What happens if the put I purchased is in the money when it expires?
A : Any option that is in the money by $0.01 or more is automatically exercised by the Options Clearing Corporation (OCC), unless you notify your brokerage firm otherwise. If you have bought a put and are automatically exercised, you will be required to deliver the shares from your account at the strike price. If you do not own the underlying stock, as many put buyers do not, your broker will add a short stock position in your account. This open short position leaves you vulnerable if the stock opens higher on Monday. The situation becomes even more complicated if you do not have the funds in your account required to buy the shares. In nearly all cases, you are better selling the option outright ahead of expiration.
For a look at today's options movers and commodities activity, head to page 2.
Commodities :
February crude futures advanced on Thursday, adding 72 cents, or 0.8%, to close at $93.82 per barrel. February gold futures ended the day higher as well, tacking on $22.50, or 1.4%, to settle at $1,678 per ounce.
At the end of every market day, the staff at Schaeffer's Investment Research reviews the trading day in detail, covering major events and key market developments. Don't miss this critical, timely and insightful report. If you enjoyed today's edition of Market Recap, sign up here for free daily delivery straight to your inbox.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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On the flip side was Alcoa ( AA ), which responded to a brokerage downgrade with a 1.2% pullback. After a fleeting trek below breakeven in late-morning trading, the Dow Jones Industrial Average (DJI) powered higher the rest of the day, closing just off its intraday peak with a gain of 81 points, or 0.6%. The 2013 Oscar nominations were released today, and "Lincoln" led the way with 12 Academy Award nods, including best picture, best director for Steven Spielberg, and best actor for Daniel Day-Lewis, who tackled the titular role.
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On the flip side was Alcoa ( AA ), which responded to a brokerage downgrade with a 1.2% pullback. The Dow Jones Industrial Average (DJI) ended on a high note, closing near its intraday peak after marching steadily north during the second half of the trading day. Continue reading for more on today's market, including : 3 entry points for a bullish Amazon.com ( AMZN ) trade, courtesy of Senior Options Strategist Tony Venosa, CMT.
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On the flip side was Alcoa ( AA ), which responded to a brokerage downgrade with a 1.2% pullback. Continue reading for more on today's market, including : 3 entry points for a bullish Amazon.com ( AMZN ) trade, courtesy of Senior Options Strategist Tony Venosa, CMT. After a fleeting trek below breakeven in late-morning trading, the Dow Jones Industrial Average (DJI) powered higher the rest of the day, closing just off its intraday peak with a gain of 81 points, or 0.6%.
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On the flip side was Alcoa ( AA ), which responded to a brokerage downgrade with a 1.2% pullback. plus... Inertia at the Bank of England, bullish trading in Netflix ( NFLX ), and a forest-for-the-trees take in our Tweet of the day. After a fleeting trek below breakeven in late-morning trading, the Dow Jones Industrial Average (DJI) powered higher the rest of the day, closing just off its intraday peak with a gain of 81 points, or 0.6%.
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1449.0
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2013-01-09 00:00:00 UTC
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Century's Arnold Van Den Berg Updates Q4 Portfolio, His Biggest Buys
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AA
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https://www.nasdaq.com/articles/centurys-arnold-van-den-berg-updates-q4-portfolio-his-biggest-buys-2013-01-09
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Austin-based value investor and founder of Century Management Arnold Van Den Berg has reported his fourth quarter portfolio, revealing that his trades included five new buys: Cohu Inc. ( COHU ), Dolby Laboratories Inc. ( DLB ), Nationstar Mortgage Holdings ( NSM ), Alcoa Inc. ( AA ), and Halliburton Company ( HAL ). Van Den Berg and his team manage a $908.3 million equity portfolio of 63 stocks. In the fourth quarter, the majority 33.5% was invested in the technology sector, followed by 11% in the financial services sector, and the rest was split among other industries.
Cohu ( COHU )
Van Den Berg's smallest new fourth-quarter buy was 74,652 shares of Cohu Inc. for $9 per share on average. The new holding occupies a mere 0.09% of his portfolio.
Cohu operates in the semiconductor, television camera and microwave communications segments. Its stock over the past year has declined 10% to $10.50 on Thursday, between a 52-week range of $7.96 and $14.16.
Cohu in the third quarter was hurt by a weak global economy which led to decreased orders and sales. The company's net sales were $57.7 million, a decline from $71.8 million in the third quarter of 2011. Its net loss was $1.7 million, a decline from net income of $3.4 million.
Cash on Cohu's balance totals $153 million, and long-term liabilities total $17.95 million, with no long-term debt. It paid a third quarter dividend of $0.06 per share and has paid uninterrupted cash dividends since 1977.
Cohu has no P/E due to its net loss; a P/B of 0.9, close to a three-year low; and P/S of 0.7, close to a one-year low.
Dolby Laboratories Inc. ( DLB )
Van Den Berg bought 85,585 shares of Dolby Laboratories for $32 each on average. It is now a 0.28% weighting of his portfolio.
Dolby Laboratories creates technologies that enhance movies, and is best known for high-quality audio and surround sound. Its stock has declined almost 8% over the last year.
The company's fourth quarter revenue was $224.8 million, compared to $243.8 million in the fourth quarter of 2011. GAAP net income was $51.5 million, compared to $79.1 million. Though a decline, fourth quarter revenue was higher than the company expected as smartphones and tablets increasingly adopt its technologies, and the Amazon ( AMZN ) Kindle included Dolby technology in its Kindle Fire HD products.
Dolby has $844.2 million in cash on its balance sheet, $83.7 million in long-term liabilities and no long-term debt.
Dolby has a P/E of 11.8, P/B of 1.8, close to a one-year low; and P/S of 3.7, close to a one-year low.
Nationstar Mortgage Holdings ( NSM )
Van Den Berg bought 114,575 shares of Nationstar Mortgage Holdings for $31 per share on average. The holding has a 0.39% weighting in his portfolio.
Texas-based Nationstar Mortgage is a mortgage servicer and lender directly to consumers, that services approximately 1 million loans with an aggregate unpaid principal balance of $198 billion at Sept. 30, 2012. The company's stock has gained 57% over the past year.
In the third quarter, Nationstar grew revenue 205% year over year to $277.2 million, from $90.9 million. Its net income reached a record $55.1 million, an increase from a loss of $3.1 million in the third quarter of 2011.
Nationstar has three stated goals: Executing on its servicing acquisition pipeline of $600 billion, organically grow servicing by recapture and expansion of its builder, wholesale and origination channels, and expanding its ancillary offering of end-to-end solutions for originations and default services.
On Jan. 7, Nationstar announced it would acquire $215 billion in residential mortgage servicing rights and other assets from Bank of America, for a purchase price of $1.3 billion.
Cash on Nationstar's balance sheet totals $690 million, as well as $893 million in liabilities and no long-term debt. The company does not pay a dividend.
Nationstar has a P/E of 19.2 and P/B of 4.9.
Alcoa Inc. ( AA )
Van Den Berg bought 1,492,980 shares of Alcoa for $9 per share on average, close to its three-year low of $8.01. It occupies a 1.43% weighting in his portfolio.
Alcoa is the largest aluminum producer, bauxite miner and alumina refiner in the world. Its stock price since the past year is essentially flat.
Alcoa met its targets in the fourth quarter for the fourth year in a row, in spite of metal price volatility, an uncertain global economy and low aluminum prices. Its revenue decreased 2% year over year to $5.9 billion, and net income of $242 million, compared to a net loss of $191 million in the fourth quarter of 2011.
Alcoa ended the quarter with $1.9 billion in cash and $9.09 billion in long-term liabilities and debt, its lowest level since 2006.
Alcoa has a P/B of 0.54, close to a three-year low; and a P/S ratio of 0.36, close to a three-year low.
Halliburton Company ( HAL )
His largest new buy, Van Den Berg purchased 378,325 shares of Halliburton Company for $33 per share on average. It holds a 1.44% weighting in his portfolio.
Texas-based Halliburton was founded in 1919 and is one of the world's largest providers of products and services to the energy industry, with operations in 80 countries. It serves the upstream oil and gas industry. Halliburton's stock over the past year increased 4%.
In the third quarter, Halliburton saw better results in its international segment, with record revenue in both its Latin America and Middle East/Asia regions, than its domestic market. International revenue increased 2%, while North American revenue declined 5%, primarily due to higher prices in hydraulic fracturing and guar costs, and the effects of Hurricane Isaac. Overall third quarter revenue declined 2% sequentially, to $7.1 billion from $7.2 billion. Net income was $604 million, compared to $739 the previous quarter.
Halliburton ended the quarter with $7.9 billion in cash and $5.6 billion in long-term liabilities and debt. It paid a $0.09 dividend and has not raised the dividend since 2008.
The company has a P/E of 11.8, P/B of 2.3 and P/S of 1.3.
To see more of Arnold Van Den Berg 's updates, visit his portfolio here . Also check out the undervalued stocks , top growth companies and high yield stocks of Arnold Van Den Berg.About GuruFocus: GuruFocus.com tracks the stocks picks and portfolio holdings of the world's best investors. This value investing site offers stock screeners and valuation tools. And publishes daily articles tracking the latest moves of the world's best investors. GuruFocus also provides promising stock ideas in 3 monthly newsletters sent to Premium Members .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Austin-based value investor and founder of Century Management Arnold Van Den Berg has reported his fourth quarter portfolio, revealing that his trades included five new buys: Cohu Inc. ( COHU ), Dolby Laboratories Inc. ( DLB ), Nationstar Mortgage Holdings ( NSM ), Alcoa Inc. ( AA ), and Halliburton Company ( HAL ). GAAP net income was $51.5 million, compared to $79.1 million. Alcoa Inc. ( AA ) Van Den Berg bought 1,492,980 shares of Alcoa for $9 per share on average, close to its three-year low of $8.01.
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Austin-based value investor and founder of Century Management Arnold Van Den Berg has reported his fourth quarter portfolio, revealing that his trades included five new buys: Cohu Inc. ( COHU ), Dolby Laboratories Inc. ( DLB ), Nationstar Mortgage Holdings ( NSM ), Alcoa Inc. ( AA ), and Halliburton Company ( HAL ). GAAP net income was $51.5 million, compared to $79.1 million. Alcoa Inc. ( AA ) Van Den Berg bought 1,492,980 shares of Alcoa for $9 per share on average, close to its three-year low of $8.01.
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Austin-based value investor and founder of Century Management Arnold Van Den Berg has reported his fourth quarter portfolio, revealing that his trades included five new buys: Cohu Inc. ( COHU ), Dolby Laboratories Inc. ( DLB ), Nationstar Mortgage Holdings ( NSM ), Alcoa Inc. ( AA ), and Halliburton Company ( HAL ). GAAP net income was $51.5 million, compared to $79.1 million. Alcoa Inc. ( AA ) Van Den Berg bought 1,492,980 shares of Alcoa for $9 per share on average, close to its three-year low of $8.01.
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Alcoa Inc. ( AA ) Van Den Berg bought 1,492,980 shares of Alcoa for $9 per share on average, close to its three-year low of $8.01. Austin-based value investor and founder of Century Management Arnold Van Den Berg has reported his fourth quarter portfolio, revealing that his trades included five new buys: Cohu Inc. ( COHU ), Dolby Laboratories Inc. ( DLB ), Nationstar Mortgage Holdings ( NSM ), Alcoa Inc. ( AA ), and Halliburton Company ( HAL ). GAAP net income was $51.5 million, compared to $79.1 million.
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1450.0
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2013-01-09 00:00:00 UTC
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Pre-Market Most Active for Jan 9, 2013 : CLWR, BAC, NOK, S, MT, FB, AA, UBS, GILT, SIRI, APOL, QQQ
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AA
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https://www.nasdaq.com/articles/pre-market-most-active-jan-9-2013-clwr-bac-nok-s-mt-fb-aa-ubs-gilt-siri-apol-qqq-2013-01
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nan
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The NASDAQ 100 Pre-Market Indicator is up 2.3 to 2,721.02. The total Pre-Market volume is currently 32,579,008 shares traded.
The following are the most active stocks for the pre-market session :
Clearwire Corporation ( CLWR ) is +0.21 at $3.13, with 26,263,869 shares traded. CLWR's current last sale is 119.24% of the target price of $2.625.
Bank of America Corporation ( BAC ) is -0.15 at $11.83, with 4,894,530 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2013. The consensus EPS forecast is $0.24. BAC's current last sale is 98.58% of the target price of $12.
Nokia Corporation ( NOK ) is -0.15 at $3.90, with 2,053,904 shares traded. NOK's current last sale is 169.57% of the target price of $2.3.
Sprint Nextel Corporation ( S ) is -0.14 at $5.83, with 1,499,398 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2013. The consensus EPS forecast is $-0.29. S's current last sale is 97.17% of the target price of $6.
ArcelorMittal ( MT ) is -0.88 at $16.65, with 1,217,366 shares traded. MT's current last sale is 89.01% of the target price of $18.705.
Facebook, Inc. ( FB ) is +0.6793 at $29.74, with 1,038,435 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2012. The consensus EPS forecast is $0.11. As reported by Zacks, the current mean recommendation for FB is in the "buy range".
Alcoa Inc. ( AA ) is +0.16 at $9.26, with 606,353 shares traded. AA's current last sale is 92.6% of the target price of $10.
UBS AG ( UBS ) is +0.38 at $16.82, with 486,362 shares traded. As reported by Zacks, the current mean recommendation for UBS is in the "buy range".
Gilat Satellite Networks Ltd. ( GILT ) is unchanged at $5.30, with 380,633 shares traded. As reported by Zacks, the current mean recommendation for GILT is in the "buy range".
Sirius XM Radio Inc. ( SIRI ) is +0.03 at $3.17, with 368,327 shares traded. As reported by Zacks, the current mean recommendation for SIRI is in the "buy range".
Apollo Group, Inc. ( APOL ) is -1.84 at $19.10, with 212,241 shares traded. APOL's current last sale is 73.46% of the target price of $26.
PowerShares QQQ Trust, Series 1 ( QQQ ) is +0.09 at $66.61, with 138,855 shares traded. This represents a 15.98% increase from its 52 Week Low.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alcoa Inc. ( AA ) is +0.16 at $9.26, with 606,353 shares traded. AA's current last sale is 92.6% of the target price of $10. The following are the most active stocks for the pre-market session : Clearwire Corporation ( CLWR ) is +0.21 at $3.13, with 26,263,869 shares traded.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Alcoa Inc. ( AA ) is +0.16 at $9.26, with 606,353 shares traded. AA's current last sale is 92.6% of the target price of $10.
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Alcoa Inc. ( AA ) is +0.16 at $9.26, with 606,353 shares traded. AA's current last sale is 92.6% of the target price of $10. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2013.
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Alcoa Inc. ( AA ) is +0.16 at $9.26, with 606,353 shares traded. AA's current last sale is 92.6% of the target price of $10. The NASDAQ 100 Pre-Market Indicator is up 2.3 to 2,721.02.
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1451.0
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2013-01-09 00:00:00 UTC
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Ahead of Wall Street - January 9, 2013 - Ahead of Wall Street
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AA
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https://www.nasdaq.com/articles/ahead-wall-street-january-9-2013-ahead-wall-street-2013-01-09
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nan
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nan
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Wednesday, January 9, 2013
The fourth quarter earnings season has started on a positive note, as this morning's report from Constellation Brands ( STZ ) and Tuesday's results from Alcoa ( AA ) and Monsanto ( MON ) show. This is a a more reassuring start than what we saw at this stage in the preceding quarter, perhaps indicating that expectations may have come down enough to make positive surprises easier to come by this reporting season. But it's way too early to make even that modest prediction at this stage as the bulk of the earnings season is ahead of us.
Total earnings are expected to be up +0.5% in the fourth quarter from the same period last year. This is a sharp drop from the +7.9% growth expected in the quarter in late September, just before the third quarter earnings season was getting underway. As was the case in the third quarter (and practically every quarter before that), the actual growth rate will most likely be better than these pre-season expectations, given management teams' mastery of under-promising and over-delivering.
Ahead of the third quarter reporting season, the expectation was for earnings in that quarter to be down -3.4%. While the actual earnings drop turned out to be 'only' -0.1%, it was nevertheless the weakest earnings growth rate in almost 12 quarters. And if the magnitude of outperformance in the fourth quarter is comparable to the last four quarters, then the final growth tally should be in the +2% vicinity. This would mean that corporate earnings were essentially flat in the second half of 2012.
But this sub-par earnings growth trend is not expected to last long or at least that's what current consensus expectations mean. After another quarter of weak results in the first quarter of 2013, earnings growth resumes in the following quarter and ramps up materially in the back half of 2013. I have been skeptical of those growth expectations for a while now, but that's exactly what the market is pricing at present.
Management guidance on the earnings conference calls is always very important, but it will be far more critical this earnings season. Guidance from management teams would frame expectations for the coming quarters. Whether those expectations will hold or come down will depend to a large extent on how management teams describe business conditions on the fourth quarter earnings calls in the coming days.
Sheraz Mian
Director of Research
ALCOA INC (AA): Free Stock Analysis Report
MONSANTO CO-NEW (MON): Free Stock Analysis Report
CONSTELLATN BRD (STZ): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Wednesday, January 9, 2013 The fourth quarter earnings season has started on a positive note, as this morning's report from Constellation Brands ( STZ ) and Tuesday's results from Alcoa ( AA ) and Monsanto ( MON ) show. Sheraz Mian Director of Research ALCOA INC (AA): Free Stock Analysis Report MONSANTO CO-NEW (MON): Free Stock Analysis Report CONSTELLATN BRD (STZ): Free Stock Analysis Report To read this article on Zacks.com click here. But it's way too early to make even that modest prediction at this stage as the bulk of the earnings season is ahead of us.
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Sheraz Mian Director of Research ALCOA INC (AA): Free Stock Analysis Report MONSANTO CO-NEW (MON): Free Stock Analysis Report CONSTELLATN BRD (STZ): Free Stock Analysis Report To read this article on Zacks.com click here. Wednesday, January 9, 2013 The fourth quarter earnings season has started on a positive note, as this morning's report from Constellation Brands ( STZ ) and Tuesday's results from Alcoa ( AA ) and Monsanto ( MON ) show. Whether those expectations will hold or come down will depend to a large extent on how management teams describe business conditions on the fourth quarter earnings calls in the coming days.
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Wednesday, January 9, 2013 The fourth quarter earnings season has started on a positive note, as this morning's report from Constellation Brands ( STZ ) and Tuesday's results from Alcoa ( AA ) and Monsanto ( MON ) show. Sheraz Mian Director of Research ALCOA INC (AA): Free Stock Analysis Report MONSANTO CO-NEW (MON): Free Stock Analysis Report CONSTELLATN BRD (STZ): Free Stock Analysis Report To read this article on Zacks.com click here. This is a sharp drop from the +7.9% growth expected in the quarter in late September, just before the third quarter earnings season was getting underway.
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Sheraz Mian Director of Research ALCOA INC (AA): Free Stock Analysis Report MONSANTO CO-NEW (MON): Free Stock Analysis Report CONSTELLATN BRD (STZ): Free Stock Analysis Report To read this article on Zacks.com click here. Wednesday, January 9, 2013 The fourth quarter earnings season has started on a positive note, as this morning's report from Constellation Brands ( STZ ) and Tuesday's results from Alcoa ( AA ) and Monsanto ( MON ) show. Ahead of the third quarter reporting season, the expectation was for earnings in that quarter to be down -3.4%.
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1452.0
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2013-01-09 00:00:00 UTC
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Stock Market News for January 9, 2013 - Market News
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AA
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https://www.nasdaq.com/articles/stock-market-news-for-january-9-2013-market-news-2013-01-09
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nan
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Benchmarks closed in the red for the second consecutive day as investor concerns about fourth-quarter earnings once again dragged markets lower. Meanwhile, earnings have started coming in and analysts are expecting profits will marginally improve from the previous quarter. Unemployment in the Euro Zone touched its highest level in November 2012 since the creation of the euro in 1999. The home building sector emerged as the biggest gainer among the S&P 500 industry groups.
The Dow Jones Industrial Average (DJI) lost 0.4% to close the day at 13,328.85. The Standard & Poor 500 (S&P 500) declined 0.3% to finish yesterday's trading session at 1,457.15. The tech-laden Nasdaq Composite Index slipped 0.2% to end at 3,091.81.The fear-gauge CBOE Volatility Index (VIX) lost 1.2% to settle at 13.62. Consolidated volumes on the New York Stock Exchange, American Stock Exchange and Nasdaq were roughly 6.19 billion shares, lower than the 2012 daily average of 6.42 billion shares. Declining stocks outpaced advancers on the NYSE; as for 51% stocks that fell, 45% moved higher.
Stocks continued to fall on Tuesday as investors remained apprehensive about fourth-quarter corporate earnings. In the previous week, benchmarks began the first trading week of the New Year with a bang as law makers sealed a deal on the Fiscal Cliff issue. The previous week's rally had pushed the S&P 500 to its highest level since 2007.
According to the Street's estimates fourth-quarter profits will be marginally better than the third-quarter profits. Current estimates for the fourth-quarter corporate results are well below October's estimates. According to data from Thomson Reuters, fourth-quarter earnings are estimated to grow by 2.7%. Markets experts are expecting issues like Hurricane Sandy, the Presidential elections and the turmoil over the Fiscal Cliff to spring many surprises during earnings season. During the third-quarter, S&P 500 revenue declined 0.8% and earnings grew only 0.1%.
Meanwhile, Monsanto Company (NYSE: MON ) surged 2.7% following its first-quarter results. The company first-quarter earnings came in above the Street's estimates. The company said profit in the first-quarter was boosted by a growth in seeds sales in Latin America. Monsanto has also increased its earnings outlook for 2013. Alcoa Inc. (NYSE: AA ) was scheduled to report after Tuesday's closing bell.
Monsanto's better-than-expected earnings report helped the materials sector finish in the green. The Materials Select Sector SPDR (XLB) gained 0.2%. Stocks such as E I Du Pont De Nemours And Co (NYSE: DD ), FMC Corporation (NYSE: FMC ), PPG Industries, Inc. (NYSE: PPG ) and Cabot Corp (NYSE: CBT ) added 0.6%, 0.8%, 1.4% and 0.2%, respectively.
On the international front, a report from statistical agency Eurostat revealed unemployment in the Euro zone increased to 11.8% in November from 11.7% in October 2012. Unemployment has touched its highest level since the inception of the euro in 1999. According to the report, around 2 million people lost their jobs in the Euro zone between November 2011 and the same period last year.
On the domestic front, only one report was released on Tuesday. Consumer credit increased by $16.1 billion in November, beating the consensus estimate of $12 billion. Consumer credit surged at a seasonally adjusted annual rate 7% in November. Revolving credit surged at an annual rate of 1% whereas nonrevolving credit surged 9.5% annually.
The housing sector was the biggest gainer among the S&P 500 industry groups and the SPDR S&P Homebuilders (XHB) gained 0.4%. Stocks such as The Home Depot, Inc. (NYSE: HD ), Lowe's Companies, Inc. (NYSE: LOW ), PulteGroup, Inc. (NYSE: PHM ), M.D.C. Holdings, Inc. (NYSE: MDC ) and Meritage Homes Corporation (NYSE: MTH ) surged 0.6%, 0.1%, 1.0%, 0.1% and 1.8%, respectively.
ALCOA INC (AA): Free Stock Analysis Report
CABOT CORP (CBT): Free Stock Analysis Report
DU PONT (EI) DE (DD): Free Stock Analysis Report
FMC CORP (FMC): Free Stock Analysis Report
HOME DEPOT (HD): Free Stock Analysis Report
LOWES COS (LOW): Free Stock Analysis Report
MDC HLDGS (MDC): Free Stock Analysis Report
MONSANTO CO-NEW (MON): Free Stock Analysis Report
MERITAGE HOMES (MTH): Free Stock Analysis Report
PULTE GROUP ONC (PHM): Free Stock Analysis Report
PPG INDS INC (PPG): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alcoa Inc. (NYSE: AA ) was scheduled to report after Tuesday's closing bell. ALCOA INC (AA): Free Stock Analysis Report CABOT CORP (CBT): Free Stock Analysis Report DU PONT (EI) DE (DD): Free Stock Analysis Report FMC CORP (FMC): Free Stock Analysis Report HOME DEPOT (HD): Free Stock Analysis Report LOWES COS (LOW): Free Stock Analysis Report MDC HLDGS (MDC): Free Stock Analysis Report MONSANTO CO-NEW (MON): Free Stock Analysis Report MERITAGE HOMES (MTH): Free Stock Analysis Report PULTE GROUP ONC (PHM): Free Stock Analysis Report PPG INDS INC (PPG): Free Stock Analysis Report To read this article on Zacks.com click here. Benchmarks closed in the red for the second consecutive day as investor concerns about fourth-quarter earnings once again dragged markets lower.
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ALCOA INC (AA): Free Stock Analysis Report CABOT CORP (CBT): Free Stock Analysis Report DU PONT (EI) DE (DD): Free Stock Analysis Report FMC CORP (FMC): Free Stock Analysis Report HOME DEPOT (HD): Free Stock Analysis Report LOWES COS (LOW): Free Stock Analysis Report MDC HLDGS (MDC): Free Stock Analysis Report MONSANTO CO-NEW (MON): Free Stock Analysis Report MERITAGE HOMES (MTH): Free Stock Analysis Report PULTE GROUP ONC (PHM): Free Stock Analysis Report PPG INDS INC (PPG): Free Stock Analysis Report To read this article on Zacks.com click here. Alcoa Inc. (NYSE: AA ) was scheduled to report after Tuesday's closing bell. Stocks such as E I Du Pont De Nemours And Co (NYSE: DD ), FMC Corporation (NYSE: FMC ), PPG Industries, Inc. (NYSE: PPG ) and Cabot Corp (NYSE: CBT ) added 0.6%, 0.8%, 1.4% and 0.2%, respectively.
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ALCOA INC (AA): Free Stock Analysis Report CABOT CORP (CBT): Free Stock Analysis Report DU PONT (EI) DE (DD): Free Stock Analysis Report FMC CORP (FMC): Free Stock Analysis Report HOME DEPOT (HD): Free Stock Analysis Report LOWES COS (LOW): Free Stock Analysis Report MDC HLDGS (MDC): Free Stock Analysis Report MONSANTO CO-NEW (MON): Free Stock Analysis Report MERITAGE HOMES (MTH): Free Stock Analysis Report PULTE GROUP ONC (PHM): Free Stock Analysis Report PPG INDS INC (PPG): Free Stock Analysis Report To read this article on Zacks.com click here. Alcoa Inc. (NYSE: AA ) was scheduled to report after Tuesday's closing bell. Stocks such as E I Du Pont De Nemours And Co (NYSE: DD ), FMC Corporation (NYSE: FMC ), PPG Industries, Inc. (NYSE: PPG ) and Cabot Corp (NYSE: CBT ) added 0.6%, 0.8%, 1.4% and 0.2%, respectively.
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Alcoa Inc. (NYSE: AA ) was scheduled to report after Tuesday's closing bell. ALCOA INC (AA): Free Stock Analysis Report CABOT CORP (CBT): Free Stock Analysis Report DU PONT (EI) DE (DD): Free Stock Analysis Report FMC CORP (FMC): Free Stock Analysis Report HOME DEPOT (HD): Free Stock Analysis Report LOWES COS (LOW): Free Stock Analysis Report MDC HLDGS (MDC): Free Stock Analysis Report MONSANTO CO-NEW (MON): Free Stock Analysis Report MERITAGE HOMES (MTH): Free Stock Analysis Report PULTE GROUP ONC (PHM): Free Stock Analysis Report PPG INDS INC (PPG): Free Stock Analysis Report To read this article on Zacks.com click here. According to the Street's estimates fourth-quarter profits will be marginally better than the third-quarter profits.
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1453.0
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2013-01-09 00:00:00 UTC
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Alcoa Meets, Paints Upbeat View - Analyst Blog
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AA
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https://www.nasdaq.com/articles/alcoa-meets-paints-upbeat-view-analyst-blog-2013-01-09
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nan
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The largest U.S. aluminum producer Alcoa Inc. ( AA ) swung to a profit in fourth-quarter 2012, buoyed by one-time gains. The company posted a profit (from continuing operation) of $242 million or 21 cents per share in the fourth quarter compared with a loss of $193 million or 18 cents a share reported in the year-ago quarter. The results were boosted by a gain of $178 million ($161 million post-tax) associated with a hydroelectric project asset sale.
Excluding one-time special items, Alcoa earned $64 million or 6 cents a share in the quarter, in line with the Zacks Consensus Estimate. The company's midstream and downstream businesses delivered profits and its cost-cutting measures also supported the results.
For full-year 2012, Alcoa logged profit (from continuing operation) of $191 million or 18 cents per share compared with a profit of $614 million or 55 cents per share a year ago. Excluding one-time items, the company earned $262 million of 24 cents per share, which missed the Zacks Consensus Estimate by a penny.
Revenues decreased 1.5% year over year to $5,898 million in the fourth quarter, but were ahead of the Zacks Consensus Estimate of $5,579 million. For the full year, revenue declined 5% year over year to $23.7 billion, beating the Zacks Consensus Estimate of $23.28 billion.
Alcoa expects global aluminum demand to grow 7% in 2013, up from 6% in 2012. Its shares rose 2.6% in after-hours trading yesterday.
Segment Details
Alumina - Shipments in the reported quarter were 2.44 million metric tons on production of 4.08 million metric tons. After Tax Operating Income (ATOI) was $41 million, down from $125 million in the year-ago quarter but up from a negative $9 million reported in the sequentially preceding quarter. The fourth quarter results were led by productivity gains and positive London Metal Exchange (LME)-based pricing, partly offset by slower Alumina Price Index-pricing.
Primary Metals - Shipments in the fourth quarter were 0.77 million metric tons versus 0.81 million metric tons a year ago. Production in the quarter was 0.91 million metric tons, a decrease of 5.2% from the year-ago quarter. ATOI was $316 million compared with a negative $32 million in the year-ago quarter and a negative $14 million in the prior quarter. The sequential improvement was mainly led by the Tapoco Hydroelectric Project asset sale and favorable LME based pricing.
Global Rolled Products - Shipments in the quarter were 0.45 million metric tons compared with 0.41 million in the prior-year quarter. Third-party revenues were $1.77 billion, up 4.7% year over year. The segment posted ATOI of $69 million, up 165.4% year over year but down 29.6% sequentially. Volume declines in packaging led to the sequential decrease, while the year-over-year improvement was attributed to volume, productivity gains and better price and mix. The segment delivered record fourth quarter ATOI and adjusted EBITDA per metric ton.
Engineered Products and Solutions - Shipments in the quarter were 0.05 million metric tons, a 1.95% decline on both year over year and sequential basis. ATOI was $137 million, up 12.3% year over year but down 14.4% sequentially. The sequential decline was due to cost increases and unfavorable volume and price/mix. The year-over-year improvement was mainly driven by productivity gains.
Financial Position
The company ended 2012 with cash and cash equivalents of $1.86 billion, down 4% year over year. Alcoa had a debt-to-capital ratio of 34.8% in 2012, within its 30% to 35% target range. Capital expenditure was $1.26 billion for the year.
Alcoa Reducing Smelting Capacity
Alcoa remained on track to move down the cost curve and curtailed capacities in its upstream business. The company completed partial curtailments of 531,000 metric tons, or 12%, of its highest-cost system smelting capacity. The curtailments will improve the competitiveness of the company's Primary Products business.
Outlook
Alcoa is optimistic for 2013 and expects global demand for aluminum to increase 7%, up from a 6% growth in 2012. The company continues to see global aluminum demand doubling between 2010 and 2020.
The company envisions 9%-10% global growth in the aerospace sector this year. Its growth forecast for the other markets are - automotive (1%-4%), commercial transportation (2%-7%), packaging (2%-3%), building and construction (4%-5%), and industrial gas turbine (3%-5%).
Our Take
Pennsylvania-based Alcoa Inc. is among the world's leading producers of primary and fabricated aluminum and alumina. The company competes with Aluminum Corporation Of China Limited ( ACH ) and RioTinto plc. ( RIO ).
We believe that the company's cost reduction efforts are, to some extent, offsetting the impact of higher energy and raw material costs on its bottom line. Alcoa is divesting underperforming assets through its restructuring program. The company is making efforts to reduce costs of its upstream business and achieve record profit in its mid stream and downstream businesses.
Alcoa currently retains a short-term Zacks Rank #3 (Hold). We currently have a long-term Neutral recommendation on the stock.
ALCOA INC (AA): Free Stock Analysis Report
ALUMINUM CP-ADR (ACH): Free Stock Analysis Report
RIO TINTO-ADR (RIO): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The largest U.S. aluminum producer Alcoa Inc. ( AA ) swung to a profit in fourth-quarter 2012, buoyed by one-time gains. ALCOA INC (AA): Free Stock Analysis Report ALUMINUM CP-ADR (ACH): Free Stock Analysis Report RIO TINTO-ADR (RIO): Free Stock Analysis Report To read this article on Zacks.com click here. Excluding one-time special items, Alcoa earned $64 million or 6 cents a share in the quarter, in line with the Zacks Consensus Estimate.
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ALCOA INC (AA): Free Stock Analysis Report ALUMINUM CP-ADR (ACH): Free Stock Analysis Report RIO TINTO-ADR (RIO): Free Stock Analysis Report To read this article on Zacks.com click here. The largest U.S. aluminum producer Alcoa Inc. ( AA ) swung to a profit in fourth-quarter 2012, buoyed by one-time gains. Excluding one-time special items, Alcoa earned $64 million or 6 cents a share in the quarter, in line with the Zacks Consensus Estimate.
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The largest U.S. aluminum producer Alcoa Inc. ( AA ) swung to a profit in fourth-quarter 2012, buoyed by one-time gains. ALCOA INC (AA): Free Stock Analysis Report ALUMINUM CP-ADR (ACH): Free Stock Analysis Report RIO TINTO-ADR (RIO): Free Stock Analysis Report To read this article on Zacks.com click here. The company posted a profit (from continuing operation) of $242 million or 21 cents per share in the fourth quarter compared with a loss of $193 million or 18 cents a share reported in the year-ago quarter.
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The largest U.S. aluminum producer Alcoa Inc. ( AA ) swung to a profit in fourth-quarter 2012, buoyed by one-time gains. ALCOA INC (AA): Free Stock Analysis Report ALUMINUM CP-ADR (ACH): Free Stock Analysis Report RIO TINTO-ADR (RIO): Free Stock Analysis Report To read this article on Zacks.com click here. For full-year 2012, Alcoa logged profit (from continuing operation) of $191 million or 18 cents per share compared with a profit of $614 million or 55 cents per share a year ago.
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1454.0
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2013-01-09 00:00:00 UTC
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Brazilian Stocks Snap 3-Day Skid, Mexican Index Hits New High as Miners Rally With Alcoa Results
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AA
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https://www.nasdaq.com/articles/brazilian-stocks-snap-3-day-skid-mexican-index-hits-new-high-miners-rally-alcoa-results
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nan
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nan
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Latin American markets are higher in late trading, with shares of mining stocks rallying after U.S. aluminum producer Alcoa ( AA ) beat analyst forecasts for Q4 revenues on improving prices for the industrial metal.
Today's gains reversed a three-day slide for the Brazilian Ibovespa index while carrying the Mexican IPC to a new record high. In particular, shares of mining companies are benefitting from AA forecasting a 7% rise in global demand this year as China's economic rebound gains traction following stimulus measures by its new government leaders.
Demand in China, the world's largest aluminum user, should grow 11% in 2013 to 23 million metric tons, Alcoa CEO Klaus Kleinfeld said during a conference call last night. He also forecast consumption acclerating in Brazil, India and Russia this year. Global demand advanced 6% in 2012, according to the company.
Here's where the regional markets stand today:
- Ibovespa was up 109.79. Now up 184.6 (+0.3%) to 61,312.45.
- IPC (Mexico City) was up 164.12. Now up 179.4 (+0.4%) to 44,749.1.
- Santiago Index IPSA up 16.94 (+0.45%) to 3,814.71
- Merval Buenos Aires was up 47.57. Now up 38.4 (+1.3%) to 3,056.4.
In company news, ADRs of Brasil Foods S.A. ( BRFS ) are up more than 2% at around $22.10 but off a 52 week high of 422.52 this afternoon following an upgrade of the meat and poultry company to Buy from Hold at TheStreet.com.
TheStreet.com analysts cited several strengths for the upgrade, saying BRFS' revenue growth and "reasonable" debt levels coupled with its rising stock price over the past year outweigh sub-par growth in net income.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Latin American markets are higher in late trading, with shares of mining stocks rallying after U.S. aluminum producer Alcoa ( AA ) beat analyst forecasts for Q4 revenues on improving prices for the industrial metal. In particular, shares of mining companies are benefitting from AA forecasting a 7% rise in global demand this year as China's economic rebound gains traction following stimulus measures by its new government leaders. Demand in China, the world's largest aluminum user, should grow 11% in 2013 to 23 million metric tons, Alcoa CEO Klaus Kleinfeld said during a conference call last night.
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Latin American markets are higher in late trading, with shares of mining stocks rallying after U.S. aluminum producer Alcoa ( AA ) beat analyst forecasts for Q4 revenues on improving prices for the industrial metal. In particular, shares of mining companies are benefitting from AA forecasting a 7% rise in global demand this year as China's economic rebound gains traction following stimulus measures by its new government leaders. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Latin American markets are higher in late trading, with shares of mining stocks rallying after U.S. aluminum producer Alcoa ( AA ) beat analyst forecasts for Q4 revenues on improving prices for the industrial metal. In particular, shares of mining companies are benefitting from AA forecasting a 7% rise in global demand this year as China's economic rebound gains traction following stimulus measures by its new government leaders. Today's gains reversed a three-day slide for the Brazilian Ibovespa index while carrying the Mexican IPC to a new record high.
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Latin American markets are higher in late trading, with shares of mining stocks rallying after U.S. aluminum producer Alcoa ( AA ) beat analyst forecasts for Q4 revenues on improving prices for the industrial metal. In particular, shares of mining companies are benefitting from AA forecasting a 7% rise in global demand this year as China's economic rebound gains traction following stimulus measures by its new government leaders. Today's gains reversed a three-day slide for the Brazilian Ibovespa index while carrying the Mexican IPC to a new record high.
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1455.0
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2013-01-09 00:00:00 UTC
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Stocks End Higher as Investors Celebrate the Start of Earnings Season
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AA
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https://www.nasdaq.com/articles/stocks-end-higher-investors-celebrate-start-earnings-season-2013-01-09
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nan
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"After two straight down days, we saw a slight bounce today, as earnings across the board came in better than expected," reported Schaeffer's Senior Technical Strategist Ryan Detrick, CMT. The Dow Jones Industrial Average (DJI) enjoyed positive territory throughout the session, reaching as high as 13,416.55 before ultimately settling about 0.5% higher. Meanwhile, the CBOE Market Volatility Index (VIX) broke its losing streak.
Continue reading for more on today's market, including :
Why shares of this natural gas firm could be pressured lower, according to research from Senior Options Strategist Tony Venosa, CMT.
Could a market top be here? Senior Trading Analyst Bryan Sapp reviews the significance of a bull flag formation .
Schaeffer's contributor Adam Warner explains how a rapidly falling VIX can only have "two possible explanations."
plus...
A new leader for the U.S. Treasury, high hopes for Ford Motor (F), and some Tweet-of-the-day advice that extends to all areas of life.
The bulls took the reins once again, as the Dow Jones Industrial Average (DJI) muscled higher, closing up 0.5%, or 62 points. Eighteen of the 30 Dow components traded higher on the day, led by Boeing ( BA ), which bounced back from yesterday's drubbing to gain 3.6%. Bringing up the rear, meanwhile, was Bank of America ( BAC ), which pulled back 4.6%.
The S&P 500 Index (SPX) added 3.9 points, or 0.3%, on the day, while the Nasdaq Composite (COMP) kept pace with its index peers, rising 14 points, or 0.5%.
The CBOE Market Volatility Index (VIX) broke its six-session losing streak with a modest gain of 0.2 point, or 1.4%. Earlier in the session, however, the index recorded a new multi-year low of 13.22.
A Trader's Take :
"Alcoa ( AA ) got the headlines today, but I'm more impressed by what was going on under the surface. Danaher (DHR) is a company three times the size of AA, and they upped their fourth-quarter guidance," Detrick noted. "At the same time, Seagate Technology ( STX ), Constellation Brands ( STZ ), and Stryker (SYK) all had positive things to say about earnings. When you consider just how low some of the overall expectations are as we begin this earnings season," he added, "one has to wonder if the analysts have once again become too bearish. This will make it much easier for companies to clear the lowered earnings bar."
3 Things to Know About Today's Market :
President Barack Obama reportedly plans to nominate current White House Chief of Staff Jack Lew to the U.S. Treasury secretary role currently held by Timothy Geithner, who wishes to exit the position by mid-month. An anonymous source broke this news today ahead of the official nomination, which is expected to come as soon as tomorrow. Mr. Lew, 57, has a long history in Washington, serving as aide to Democratic House Speaker Tip O'Neill in the 1980s and budget advisor to President Clinton in the 1990s.
As quickly as they started, reports that American International Group (AIG) would latch on to a shareholder lawsuit against the U.S. government were laid to rest. The board met today and decided against taking part in the $25-billion suit, which was originally filed by former AIG CEO Maurice "Hank" Greenberg.
Morgan Stanley (MS) said it will reduce its staff by 6%, eliminating 1,600 jobs due to current "market conditions." While all divisions of the investment banking firm will be impacted, the more senior ranks will suffer a larger collective hit. Once these reductions have been implemented, the MS workforce will be 10% smaller than it was in September 2011.
Plus ... a cryptic invitation from Facebook Inc (FB) has ignited the rumor mills. A media invite to "Come and see what we're building" has led to speculation about a FB phone, despite CEO Mark Zuckerberg's assertions to the contrary. Other theories are a new search function or an updated privacy policy. All will be revealed next Tuesday morning at the company's Menlo Park, Calif. campus.
Today's Top Tweet :
"Confidence comes not from always being right but from not fearing to be wrong."
@idillionaire, (idil), 7:40 a.m.
5 Stocks We Were Watching Today :
Ford Motor (F) option bulls expect the stock to hit a new annual high within the next six months.
Speculators opened both calls and puts on EMC Corporation (EMC).
J.C. Penney (JCP) was swatted with a brokerage downgrade this morning.
In the wake of its disappointing earnings report, Apollo Group (APOL) saw increased demand for put options .
Bullish option buyers were not deterred by Nokia Corporation's (NOK) recent move lower.
Question of the Day :
Q : What does arbitrage mean?
A : Arbitrage is a trader's attempt to take advantage of minor price differences between markets in order to generate a profit. For example, due to fluctuations in the foreign exchange rate, a stock could trade at a slightly different price overseas than it does at home. To create an arbitrage (or "arb") opportunity, the trader could buy shares at the lower price, then quickly turn around and sell them at the higher price. Fast-moving markets create a risk for even the most seasoned arbitrage traders, however, as prospects can quickly vanish before both parts of the trade are executed.
For a look at today's options movers and commodities activity, head to page 2.
Commodities :
Oil futures continued to edge lower today, with the February contract shedding 5 cents, or 0.05%, to $93.10 per barrel. Gold futures were in the red as well; February-dated gold surrendered $6.70, or 0.4%, to settle at $1,655.50 an ounce.
At the end of every market day, the staff at Schaeffer's Investment Research reviews the trading day in detail, covering major events and key market developments. Don't miss this critical, timely and insightful report. If you enjoyed today's edition of Market Recap, sign up here for free daily delivery straight to your inbox.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A Trader's Take : "Alcoa ( AA ) got the headlines today, but I'm more impressed by what was going on under the surface. Danaher (DHR) is a company three times the size of AA, and they upped their fourth-quarter guidance," Detrick noted. "After two straight down days, we saw a slight bounce today, as earnings across the board came in better than expected," reported Schaeffer's Senior Technical Strategist Ryan Detrick, CMT.
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A Trader's Take : "Alcoa ( AA ) got the headlines today, but I'm more impressed by what was going on under the surface. Danaher (DHR) is a company three times the size of AA, and they upped their fourth-quarter guidance," Detrick noted. Meanwhile, the CBOE Market Volatility Index (VIX) broke its losing streak.
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A Trader's Take : "Alcoa ( AA ) got the headlines today, but I'm more impressed by what was going on under the surface. Danaher (DHR) is a company three times the size of AA, and they upped their fourth-quarter guidance," Detrick noted. "After two straight down days, we saw a slight bounce today, as earnings across the board came in better than expected," reported Schaeffer's Senior Technical Strategist Ryan Detrick, CMT.
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A Trader's Take : "Alcoa ( AA ) got the headlines today, but I'm more impressed by what was going on under the surface. Danaher (DHR) is a company three times the size of AA, and they upped their fourth-quarter guidance," Detrick noted. "After two straight down days, we saw a slight bounce today, as earnings across the board came in better than expected," reported Schaeffer's Senior Technical Strategist Ryan Detrick, CMT.
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1456.0
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2013-01-08 00:00:00 UTC
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Alcoa (AA) Earnings Don’t Tell Us Much
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AA
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https://www.nasdaq.com/articles/alcoa-aa-earnings-dont-tell-us-much-2013-01-08
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nan
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Alcoa ( AA ) is supposed to be the groundhog of earnings season, a harbinger of what to expect in the next six weeks. But the aluminum-producing giant's latest earnings report doesn't tell us much.
Alcoa's earnings of 21 cents a share were in line with consensus expectations. The market tends to rise during earnings seasons after Alcoa beats estimates, so this earnings match doesn't give us much of an indication of what to expect in the coming weeks.
The good news is that it beat on revenue, and 21-cents-per-share profit is well ahead of the fourth-quarter loss the company suffered a year ago.
So we may have to wait until the banks report to earnings to get much of a gauge on what to expect this season. Wells Fargo ( WFC ) is the first to report, on Friday.
As for Alcoa itself, the revenue beat is driving shares up 1.3% in after-market trading. At $9.22 a share, the stock is trading at a four-month high.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alcoa ( AA ) is supposed to be the groundhog of earnings season, a harbinger of what to expect in the next six weeks. The good news is that it beat on revenue, and 21-cents-per-share profit is well ahead of the fourth-quarter loss the company suffered a year ago. So we may have to wait until the banks report to earnings to get much of a gauge on what to expect this season.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Alcoa ( AA ) is supposed to be the groundhog of earnings season, a harbinger of what to expect in the next six weeks. The market tends to rise during earnings seasons after Alcoa beats estimates, so this earnings match doesn't give us much of an indication of what to expect in the coming weeks.
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Alcoa ( AA ) is supposed to be the groundhog of earnings season, a harbinger of what to expect in the next six weeks. Alcoa's earnings of 21 cents a share were in line with consensus expectations. The market tends to rise during earnings seasons after Alcoa beats estimates, so this earnings match doesn't give us much of an indication of what to expect in the coming weeks.
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Alcoa ( AA ) is supposed to be the groundhog of earnings season, a harbinger of what to expect in the next six weeks. The market tends to rise during earnings seasons after Alcoa beats estimates, so this earnings match doesn't give us much of an indication of what to expect in the coming weeks. So we may have to wait until the banks report to earnings to get much of a gauge on what to expect this season.
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1457.0
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2013-01-08 00:00:00 UTC
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Dow Drops Again in Quiet Session While VIX Continues Its Descent
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AA
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https://www.nasdaq.com/articles/dow-drops-again-quiet-session-while-vix-continues-its-descent-2013-01-08
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nan
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nan
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The Dow Jones Industrial Average (DJI) moved lower again today as investors readied their portfolios for earnings season. "It was more of the same as yesterday," observed Schaeffer's Senior Technical Strategist Ryan Detrick, CMT. "We pulled back on light volume as everyone gets ready for earnings season. Don't worry," Detrick noted, "once earnings season heats up, we'll start to see more action."
Continue reading for more on today's market, including :
What was "surprising about today's action" ? Senior Trading Analyst Bryan Sapp explains.
Earnings season is here and Schaeffer's contributor Adam Warner offered a preview of coming reports .
Last week's fiscal-cliff deal doesn't mean the budget talks are over. Here are three key dates to watch this quarter.
plus...
AIG shows some nerve, Groupon ( GRPN ) attracts some hopeful traders, and our Tweet of the day offers an important reminder to jaded traders.
It was indeed a near-repeat of Monday, as the Dow Jones Industrial Average (DJI) traded in a fairly narrow range but spent the entire day south of breakeven. By the close, the blue-chip index had given back 55 points, or 0.4%, but remained above its 10-day moving average for the fifth consecutive session. Still, 14 of the 30 Dow names closed in the black, led by Hewlett-Packard ( HPQ ), which appreciated by 1.5%. Alcoa ( AA ) was flat on the day ahead of its earnings release, and Boeing ( BA ) brought up the rear, losing 2.6% amid reports of a fuel leak with one of its 787 Dreamliner aircraft.
The S&P 500 Index (SPX) moved lower as well, dropping 4.7 points, or 0.3%. The Nasdaq Composite (COMP) suffered the smallest deficit, shedding 7 points, or 0.2%.
After spending most of the day in positive territory, the CBOE Market Volatility Index (VIX) made it six losses in a row, closing down 0.2 point, or 1.2%.
A Trader's Take :
"After the huge rally last week, it could very well have been time for a break, and that is what we're seeing this week," quipped Detrick. "The biggest news of the day were the rumors that AIG was considering suing the U.S. government over violation of the Fifth Amendment. That's right, suing the same government that bailed them out. This isn't set in stone and is not certain to actually happen, but the fact it is even being considered is pretty amazing."
3 Things to Know About Today's Market :
Jaws were heard dropping up and down Wall Street today, as American International Group ( AIG ) deliberated whether or not to join a shareholder lawsuit against the U.S. government. At issue are the specific terms of the $182 billion bailout that saved the insurer from bankruptcy (or worse) in 2008, as shareholders were negatively impacted by high interest rates. Former AIG CEO Maurice "Hank" Greenberg initially filed the suit and is now fighting its dismissal in federal court, while a separate suit proceeds through the US. Court of Federal Claims. Ironically, this news comes on the heels of AIG's "Thank You, America" TV ad campaign, which offers gratitude for the government assistance.
With Alcoa ( AA ) slated to report fourth-quarter earnings after the close, earnings season has unofficially begun. This quarter, companies in the S&P 500 Index (SPX) are projected to report earnings growth of 2.8%, up from the anemic 0.1% growth rate in the third quarter.
The Consumer Electronics Show (CES) opened in Las Vegas last night, and tech-sector analysts say to be on the lookout for three themes. First, PC manufacturers will try and stage a renaissance, spurred by touchscreen tablets. Meanwhile, mobile companies will feature the smartphone as the nucleolus from which users can control all aspects of their digital life. Finally, those in the television business hope to convince consumers that it's worth paying for bigger and brighter technology.
Plus ... Google (GOOG) is testing its free WiFi service in an area populated by those who are probably already paying a monthly Internet fee -- Manhattan's chic Chelsea neighborhood. This is one step toward Mayor Michael Bloomberg's quest to be "the world's leading digital city," with "universal access to high-speed Internet." Under the terms of the deal, GOOG will absorb two-thirds of the costs to build and maintain the network, while a nonprofit neighborhood development group will pick up the rest. While Chelsea isn't exactly a region where residents can't easily afford Internet access, it is home to Google's NYC-based office.
Today's Top Tweet :
"Don't trade out of boredom, have a plan and see it first. Days like today are often best spent studying."
@SunriseTrader, , 12:50 p.m.
5 Stocks We Were Watching Today :
Groupon ( GRPN ) options traders are looking for a bounce higher over the next few weeks.
Bank of America (BAC) was tagged with price-target hikes at a pair of brokerage firms.
Ford Motor (F) bulls traded a bullish spread in the January 2015 series.
Short-term skeptics focused their efforts on Akamai Technologies (AKAM).
Juniper Networks (JNPR) speculators switched gears, buying to open April-dated puts.
Question of the Day :
Q : How can I determine if I will be assigned on my sold option?
A : An option seller will typically not be assigned unless the position is in the money at expiration. One (albeit not foolproof) way to determine the odds of this outcome is by looking at the option's delta, which gives a rough estimate of the percentage chance a position has of being in the money by expiration. So an option with a delta of positive or negative 0.2 has a 20% chance of being in the money when the options expire. This is a general method, however, as delta does not (and cannot) account for unexpected dramatic moves in the underlying security.
For a look at today's options movers and commodities activity, head to page 2.
Commodities :
Oil futures were little changed in Tuesday's session, with the February contract edging down 4 cents to $93.15 per barrel. Gold futures, however, mounted a strong advance, snapping their recent losing streak. February-dated gold added $15.90, or 1%, to settle at $1,662.20 an ounce.
At the end of every market day, the staff at Schaeffer's Investment Research reviews the trading day in detail, covering major events and key market developments. Don't miss this critical, timely and insightful report. If you enjoyed today's edition of Market Recap, sign up here for free daily delivery straight to your inbox.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alcoa ( AA ) was flat on the day ahead of its earnings release, and Boeing ( BA ) brought up the rear, losing 2.6% amid reports of a fuel leak with one of its 787 Dreamliner aircraft. With Alcoa ( AA ) slated to report fourth-quarter earnings after the close, earnings season has unofficially begun. It was indeed a near-repeat of Monday, as the Dow Jones Industrial Average (DJI) traded in a fairly narrow range but spent the entire day south of breakeven.
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Alcoa ( AA ) was flat on the day ahead of its earnings release, and Boeing ( BA ) brought up the rear, losing 2.6% amid reports of a fuel leak with one of its 787 Dreamliner aircraft. With Alcoa ( AA ) slated to report fourth-quarter earnings after the close, earnings season has unofficially begun. The Dow Jones Industrial Average (DJI) moved lower again today as investors readied their portfolios for earnings season.
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Alcoa ( AA ) was flat on the day ahead of its earnings release, and Boeing ( BA ) brought up the rear, losing 2.6% amid reports of a fuel leak with one of its 787 Dreamliner aircraft. With Alcoa ( AA ) slated to report fourth-quarter earnings after the close, earnings season has unofficially begun. The Dow Jones Industrial Average (DJI) moved lower again today as investors readied their portfolios for earnings season.
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With Alcoa ( AA ) slated to report fourth-quarter earnings after the close, earnings season has unofficially begun. Alcoa ( AA ) was flat on the day ahead of its earnings release, and Boeing ( BA ) brought up the rear, losing 2.6% amid reports of a fuel leak with one of its 787 Dreamliner aircraft. Continue reading for more on today's market, including : What was "surprising about today's action" ?
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1458.0
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2013-01-08 00:00:00 UTC
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After Hours Most Active for Jan 8, 2013 : AA, ETP, QQQ, BAC, EMC, NOK, APOL, BX, STX, SIRI, MSFT, QGEN
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AA
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https://www.nasdaq.com/articles/after-hours-most-active-jan-8-2013-aa-etp-qqq-bac-emc-nok-apol-bx-stx-siri-msft-qgen-2013
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The NASDAQ 100 After Hours Indicator is up .08 to 2,718.8. The total After hours volume is currently 26,792,190 shares traded.
The following are the most active stocks for the after hours session :
Alcoa Inc. ( AA ) is +0.14 at $9.24, with 3,703,227 shares traded. RTT News Reports: Alcoa Turns To Profit In Q4 - Quick Facts
ENERGY TRANSFER PARTNERS ( ETP ) is unchanged at $45.06, with 3,000,300 shares traded. ETP's current last sale is 91.96% of the target price of $49.
PowerShares QQQ Trust, Series 1 ( QQQ ) is +0.02 at $66.54, with 2,499,836 shares traded. This represents a 15.86% increase from its 52 Week Low.
Bank of America Corporation ( BAC ) is unchanged at $11.98, with 1,725,825 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2013. The consensus EPS forecast is $0.24. BAC's current last sale is 99.83% of the target price of $12.
EMC Corporation ( EMC ) is unchanged at $23.87, with 1,704,832 shares traded. As reported by Zacks, the current mean recommendation for EMC is in the "buy range".
Nokia Corporation ( NOK ) is -0.01 at $4.04, with 1,165,228 shares traded. NOK's current last sale is 175.65% of the target price of $2.3.
Apollo Group, Inc. ( APOL ) is -0.99 at $19.95, with 1,004,730 shares traded. RTT News Reports: Apollo Group Q1 13 Earnings Conference Call At 5:00 PM ET
The Blackstone Group L.P. ( BX ) is unchanged at $16.68, with 1,003,200 shares traded. As reported by Zacks, the current mean recommendation for BX is in the "buy range".
Seagate Technology. ( STX ) is +0.606 at $32.00, with 746,364 shares traded. STX's current last sale is 106.67% of the target price of $30.
Sirius XM Radio Inc. ( SIRI ) is unchanged at $3.14, with 664,292 shares traded. As reported by Zacks, the current mean recommendation for SIRI is in the "buy range".
Microsoft Corporation ( MSFT ) is unchanged at $26.55, with 512,977 shares traded. As reported by Zacks, the current mean recommendation for MSFT is in the "buy range".
Qiagen N.V. ( QGEN ) is +0.0928 at $18.81, with 496,614 shares traded. As reported in the last short interest update the days to cover for QGEN is 10.678535; this calculation is based on the average trading volume of the stock.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The following are the most active stocks for the after hours session : Alcoa Inc. ( AA ) is +0.14 at $9.24, with 3,703,227 shares traded. RTT News Reports: Alcoa Turns To Profit In Q4 - Quick Facts ENERGY TRANSFER PARTNERS ( ETP ) is unchanged at $45.06, with 3,000,300 shares traded. As reported in the last short interest update the days to cover for QGEN is 10.678535; this calculation is based on the average trading volume of the stock.
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The following are the most active stocks for the after hours session : Alcoa Inc. ( AA ) is +0.14 at $9.24, with 3,703,227 shares traded. The total After hours volume is currently 26,792,190 shares traded. RTT News Reports: Alcoa Turns To Profit In Q4 - Quick Facts ENERGY TRANSFER PARTNERS ( ETP ) is unchanged at $45.06, with 3,000,300 shares traded.
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The following are the most active stocks for the after hours session : Alcoa Inc. ( AA ) is +0.14 at $9.24, with 3,703,227 shares traded. RTT News Reports: Alcoa Turns To Profit In Q4 - Quick Facts ENERGY TRANSFER PARTNERS ( ETP ) is unchanged at $45.06, with 3,000,300 shares traded. EMC Corporation ( EMC ) is unchanged at $23.87, with 1,704,832 shares traded.
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The following are the most active stocks for the after hours session : Alcoa Inc. ( AA ) is +0.14 at $9.24, with 3,703,227 shares traded. The NASDAQ 100 After Hours Indicator is up .08 to 2,718.8. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2013.
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1459.0
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2013-01-08 00:00:00 UTC
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Alcoa (AA) Starts Q4 Earnings Season on the Right Foot; Sales Grow Sequentially
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AA
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https://www.nasdaq.com/articles/alcoa-aa-starts-q4-earnings-season-right-foot-sales-grow-sequentially-2013-01-08
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nan
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Shares of Alcoa, Inc. ( AA ) are mildly higher after-hours Tuesday following fourth quarter results, which beat expectations on the top-line and met them on the bottom-line. Importantly, the results from Alcoa also signify the unofficial start of the fourth quarter earnings season.
Revenue for the quarter came in at $5.9 billion, up 1 percent sequentially, down 2 percent from last year and versus the consensus estimate of $5.6 billion. Sequentially, the higher fourth quarter revenues were primarily due to improved realized pricing for aluminum (up 5 percent).
Alcoa reported earnings in the quarter of $0.21 per share, or $0.06 ex-positive items, which was in-line with the analyst estimate of $0.06.
Adjusted EBITDA in fourth quarter 2012 was $597 million, an increase of $315 million over third quarter 2012 and an increase of $152 million over fourth quarter 2011. Analysts at Deutsche Bank expected adjusted EBITDA of $607 million for the quarter.
"Alcoa hit record profitability in our mid and downstream businesses, and continued to drive efficiency in our upstream businesses in the fourth quarter, all while cutting debt and maintaining our cash position," said Klaus Kleinfeld, Alcoa Chairman and Chief Executive Officer.
"We overcame volatile metal prices and global economic instability to deliver on our targets for the fourth year in a row. We enter 2013 in a strong position to maximize profitable growth."
In 2013, Alcoa sees global aluminum demand growth of 7 percent, up from 6 percent in 2012 and ahead of the 6.5 percent rate required to meet the Company's forecast of a doubling in global aluminum demand between 2010 and 2020. Aluminum demand grew 10 percent in 2011 on top of 13 percent growth in 2010.
In 2013, Alcoa projects global growth in the aerospace (9-10 percent), automotive (1-4 percent), commercial transportation (2-7 percent), packaging (2-3 percent), building and construction (4-5 percent), and industrial gas turbine (3-5 percent) markets.
For earnings history and earnings-related data on Alcoa, Inc. ( AA ) click here .
Shares of Alcoa last traded at $9.20, up 1.1 percent from the close.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of Alcoa, Inc. ( AA ) are mildly higher after-hours Tuesday following fourth quarter results, which beat expectations on the top-line and met them on the bottom-line. For earnings history and earnings-related data on Alcoa, Inc. ( AA ) click here . Sequentially, the higher fourth quarter revenues were primarily due to improved realized pricing for aluminum (up 5 percent).
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Shares of Alcoa, Inc. ( AA ) are mildly higher after-hours Tuesday following fourth quarter results, which beat expectations on the top-line and met them on the bottom-line. For earnings history and earnings-related data on Alcoa, Inc. ( AA ) click here . Sequentially, the higher fourth quarter revenues were primarily due to improved realized pricing for aluminum (up 5 percent).
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Shares of Alcoa, Inc. ( AA ) are mildly higher after-hours Tuesday following fourth quarter results, which beat expectations on the top-line and met them on the bottom-line. For earnings history and earnings-related data on Alcoa, Inc. ( AA ) click here . Adjusted EBITDA in fourth quarter 2012 was $597 million, an increase of $315 million over third quarter 2012 and an increase of $152 million over fourth quarter 2011.
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Shares of Alcoa, Inc. ( AA ) are mildly higher after-hours Tuesday following fourth quarter results, which beat expectations on the top-line and met them on the bottom-line. For earnings history and earnings-related data on Alcoa, Inc. ( AA ) click here . Analysts at Deutsche Bank expected adjusted EBITDA of $607 million for the quarter.
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1460.0
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2013-01-08 00:00:00 UTC
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Stock Market News for January 8, 2013 - Market News
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AA
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https://www.nasdaq.com/articles/stock-market-news-for-january-8-2013-market-news-2013-01-08
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nan
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nan
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Investor apprehensions surrounding fourth-quarter earnings dragged benchmarks into negative territory on Monday. Indices declined after posting a strong rally in the previous week, during which the S&P 500 had reached its highest level in nearly five years. Alcoa will kick off the fourth-quarter earning season after Tuesday's closing bell. The health care sector was the only gainer whereas the utilities sector was the biggest loser among the S&P 500 industry groups.
The Dow Jones Industrial Average (DJI) lost 0.4% to close the day at 13,384.29. The Standard & Poor 500 (S&P 500) declined 0.3% to finish yesterday's trading session at 1,461.89. The tech-laden Nasdaq Composite Index slipped 0.1% to end at 3,098.81.The fear-gauge CBOE Volatility Index (VIX) lost 0.3% to settle at 13.79. Consolidated volumes on the New York Stock Exchange, American Stock Exchange and Nasdaq were roughly 4.78 billion shares, significantly lower than the 2012 daily average of 6.42 billion shares. Declining stocks outpaced advancers on the NYSE; as for 54% stocks that fell, 43% moved higher.
Benchmarks failed to maintain the momentum of last week's strong rally. Markets began the first trading week of the year with a sharp rally triggered by a resolution to the Fiscal Cliff dilemma. Last week, the labor department reported that the U.S. economy kept up hiring at a moderate pace. Additionally, the ISM non-manufacturing index surged in December. These two positive reports also boosted market sentiment. Consequently, the S&P 500 gained 4.6% and reached its highest level since 2007.
Alcoa Inc. (NYSE: AA ) is slated to report its quarterly results after the close on Tuesday. Shares of the company declined 1.7%. According to the Street's estimates the fourth-quarter earning season will be marginally better than the previous quarter. Analysts' current estimates for the fourth-quarter corporate results are well below their October's estimates. According to data from Thomson Reuters, S&P 500 earnings are estimated to increase by 2.8%. During the third-quarter, S&P 500 revenue declined 0.8% and earnings grew only 0.1%. Some corporate majors like Wells Fargo & Company (NYSE: WFC ) and Monsanto Company (NYSE: MON ) will also report their quarterly results this week.
Meanwhile, ten U.S. banks said they were making two major settlements, together amounting to $20 billion related to claims which arose from the mortgage crisis. Bank of America Corp (NYSE: BAC ) will pay around $11.6 billion to Fannie Mae to settle a long standing legal confrontation over bad loans. Separately, ten mortgage service companies will pay in excess of $8.5 billion, which will bring to a close regulator queries related to housing foreclosures.
The health care sector was the only gainer among the S&P 500 industry groups and the Health Care SPDR (XLV) gained 0.3%. Stocks such as Abbott Laboratories (NYSE: ABT ), Bristol Myers Squibb Co. (NYSE: BMY ), Merck & Co., Inc. (NYSE: MRK ), Watson Pharmaceuticals, Inc. (NYSE: WPI ) and Endo Health Solutions Inc (NASDAQ: ENDP ) added 0.8%, 0.2%, 0.4%, 0.4% and 3.6%, respectively.
The utilities sector had a bad run and was the biggest loser among the S&P 500 industry groups. The Utilities SPDR (XLU) lost 1.0%. Stocks such as Exelon Corporation (NYSE: EXC ), NextEra Energy, Inc. (NYSE: NEE ), Duke Energy Corp (NYSE: DUK ), Xcel Energy Inc (NYSE: XEL ) and The Southern Company (NYSE: SO ) slipped 1.3%, 0.5%, 0.5%, 1.1% and 1.7%, respectively.
ALCOA INC (AA): Free Stock Analysis Report
ABBOTT LABS (ABT): Free Stock Analysis Report
BANK OF AMER CP (BAC): Free Stock Analysis Report
BRISTOL-MYERS (BMY): Free Stock Analysis Report
DUKE ENERGY CP (DUK): Free Stock Analysis Report
ENDO PHARMACEUT (ENDP): Free Stock Analysis Report
EXELON CORP (EXC): Free Stock Analysis Report
MONSANTO CO-NEW (MON): Free Stock Analysis Report
MERCK & CO INC (MRK): Free Stock Analysis Report
NEXTERA ENERGY (NEE): Free Stock Analysis Report
SOUTHN COMPANY (SO): Free Stock Analysis Report
WELLS FARGO-NEW (WFC): Free Stock Analysis Report
WATSON PHARMA (WPI): Free Stock Analysis Report
XCEL ENERGY INC (XEL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alcoa Inc. (NYSE: AA ) is slated to report its quarterly results after the close on Tuesday. ALCOA INC (AA): Free Stock Analysis Report ABBOTT LABS (ABT): Free Stock Analysis Report BANK OF AMER CP (BAC): Free Stock Analysis Report BRISTOL-MYERS (BMY): Free Stock Analysis Report DUKE ENERGY CP (DUK): Free Stock Analysis Report ENDO PHARMACEUT (ENDP): Free Stock Analysis Report EXELON CORP (EXC): Free Stock Analysis Report MONSANTO CO-NEW (MON): Free Stock Analysis Report MERCK & CO INC (MRK): Free Stock Analysis Report NEXTERA ENERGY (NEE): Free Stock Analysis Report SOUTHN COMPANY (SO): Free Stock Analysis Report WELLS FARGO-NEW (WFC): Free Stock Analysis Report WATSON PHARMA (WPI): Free Stock Analysis Report XCEL ENERGY INC (XEL): Free Stock Analysis Report To read this article on Zacks.com click here. Markets began the first trading week of the year with a sharp rally triggered by a resolution to the Fiscal Cliff dilemma.
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ALCOA INC (AA): Free Stock Analysis Report ABBOTT LABS (ABT): Free Stock Analysis Report BANK OF AMER CP (BAC): Free Stock Analysis Report BRISTOL-MYERS (BMY): Free Stock Analysis Report DUKE ENERGY CP (DUK): Free Stock Analysis Report ENDO PHARMACEUT (ENDP): Free Stock Analysis Report EXELON CORP (EXC): Free Stock Analysis Report MONSANTO CO-NEW (MON): Free Stock Analysis Report MERCK & CO INC (MRK): Free Stock Analysis Report NEXTERA ENERGY (NEE): Free Stock Analysis Report SOUTHN COMPANY (SO): Free Stock Analysis Report WELLS FARGO-NEW (WFC): Free Stock Analysis Report WATSON PHARMA (WPI): Free Stock Analysis Report XCEL ENERGY INC (XEL): Free Stock Analysis Report To read this article on Zacks.com click here. Alcoa Inc. (NYSE: AA ) is slated to report its quarterly results after the close on Tuesday. Stocks such as Abbott Laboratories (NYSE: ABT ), Bristol Myers Squibb Co. (NYSE: BMY ), Merck & Co., Inc. (NYSE: MRK ), Watson Pharmaceuticals, Inc. (NYSE: WPI ) and Endo Health Solutions Inc (NASDAQ: ENDP ) added 0.8%, 0.2%, 0.4%, 0.4% and 3.6%, respectively.
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ALCOA INC (AA): Free Stock Analysis Report ABBOTT LABS (ABT): Free Stock Analysis Report BANK OF AMER CP (BAC): Free Stock Analysis Report BRISTOL-MYERS (BMY): Free Stock Analysis Report DUKE ENERGY CP (DUK): Free Stock Analysis Report ENDO PHARMACEUT (ENDP): Free Stock Analysis Report EXELON CORP (EXC): Free Stock Analysis Report MONSANTO CO-NEW (MON): Free Stock Analysis Report MERCK & CO INC (MRK): Free Stock Analysis Report NEXTERA ENERGY (NEE): Free Stock Analysis Report SOUTHN COMPANY (SO): Free Stock Analysis Report WELLS FARGO-NEW (WFC): Free Stock Analysis Report WATSON PHARMA (WPI): Free Stock Analysis Report XCEL ENERGY INC (XEL): Free Stock Analysis Report To read this article on Zacks.com click here. Alcoa Inc. (NYSE: AA ) is slated to report its quarterly results after the close on Tuesday. Stocks such as Abbott Laboratories (NYSE: ABT ), Bristol Myers Squibb Co. (NYSE: BMY ), Merck & Co., Inc. (NYSE: MRK ), Watson Pharmaceuticals, Inc. (NYSE: WPI ) and Endo Health Solutions Inc (NASDAQ: ENDP ) added 0.8%, 0.2%, 0.4%, 0.4% and 3.6%, respectively.
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Alcoa Inc. (NYSE: AA ) is slated to report its quarterly results after the close on Tuesday. ALCOA INC (AA): Free Stock Analysis Report ABBOTT LABS (ABT): Free Stock Analysis Report BANK OF AMER CP (BAC): Free Stock Analysis Report BRISTOL-MYERS (BMY): Free Stock Analysis Report DUKE ENERGY CP (DUK): Free Stock Analysis Report ENDO PHARMACEUT (ENDP): Free Stock Analysis Report EXELON CORP (EXC): Free Stock Analysis Report MONSANTO CO-NEW (MON): Free Stock Analysis Report MERCK & CO INC (MRK): Free Stock Analysis Report NEXTERA ENERGY (NEE): Free Stock Analysis Report SOUTHN COMPANY (SO): Free Stock Analysis Report WELLS FARGO-NEW (WFC): Free Stock Analysis Report WATSON PHARMA (WPI): Free Stock Analysis Report XCEL ENERGY INC (XEL): Free Stock Analysis Report To read this article on Zacks.com click here. Shares of the company declined 1.7%.
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1461.0
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2013-01-08 00:00:00 UTC
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Q4 Earnings Season Gets Underway - Analyst Blog
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AA
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https://www.nasdaq.com/articles/q4-earnings-season-gets-underway-analyst-blog-2013-01-08
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nan
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nan
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Alcoa ( AA ) 'unofficially' kicks off the fourth quarter earnings season after the close today, and it promises to be a less-than-inspiring reporting cycle. Total earnings for companies in the S&P 500 are expected to be flat this quarter from the same period last year, roughly similar to the flat growth finish in the third quarter.
But with macro issues -- ranging from the 'Fiscal Cliff' and the Fed to the outlook for Europe and China -- occupying investors' attention, it isn't clear at this stage if the deteriorating earnings picture will finally get the spotlight that it deserves.
Expectations have come down significantly enough for the fourth quarter that actual results are unlikely to be worse than what we experienced in the third quarter. Even the flat earnings growth expected this quarter is better than the negative earnings growth that was expected for the third quarter at the start of that earnings season.
In the end, third quarter earnings were a lot less negative (down only -0.1%), but that was a sharp contrast to the positive earnings growth performance quarter after quarter since 2009. Importantly, as the third quarter reporting season was getting underway, consensus estimates for the fourth quarter looked for earnings growth in excess of +7%.
The drumbeat of negative guidance on the third quarter earnings calls brought down that growth expectation from +7% to the current +0.4%. As is typically the case each quarter, most companies will likely come ahead of these lowered expectations.
Guidance from management teams on the earnings conference calls is always very important, but it will be even more critical this earnings season. In the current post-Reg FD environment, company guidance has become the primary tool through which managements anchor the market's expectations. And earnings expectations for the coming quarters appear unusually optimistic relative to what we have seen lately.
Consensus estimates peg earnings growth to ramp up from the flat-lined performance of the second half of 2012 to a roughly +10% gain in 2013. Whether those expectations will hold or come down will depend to a large extent on how management teams describe business conditions on the fourth quarter earnings calls in the coming days.
We will know more in the coming days as the earnings picture evolves. But all indications are that estimates need to come down given the unsteady and weak state of the global economy. Revenue growth and margin expansion are the primary avenues through which earnings could grow. And both of those avenues have already played out. The market hasn't been particularly concerned about this issue thus far, but it is difficult to envision investors shrugging lack of earnings growth for long.
ALCOA INC (AA): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alcoa ( AA ) 'unofficially' kicks off the fourth quarter earnings season after the close today, and it promises to be a less-than-inspiring reporting cycle. ALCOA INC (AA): Free Stock Analysis Report To read this article on Zacks.com click here. But with macro issues -- ranging from the 'Fiscal Cliff' and the Fed to the outlook for Europe and China -- occupying investors' attention, it isn't clear at this stage if the deteriorating earnings picture will finally get the spotlight that it deserves.
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Alcoa ( AA ) 'unofficially' kicks off the fourth quarter earnings season after the close today, and it promises to be a less-than-inspiring reporting cycle. ALCOA INC (AA): Free Stock Analysis Report To read this article on Zacks.com click here. Even the flat earnings growth expected this quarter is better than the negative earnings growth that was expected for the third quarter at the start of that earnings season.
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Alcoa ( AA ) 'unofficially' kicks off the fourth quarter earnings season after the close today, and it promises to be a less-than-inspiring reporting cycle. ALCOA INC (AA): Free Stock Analysis Report To read this article on Zacks.com click here. Even the flat earnings growth expected this quarter is better than the negative earnings growth that was expected for the third quarter at the start of that earnings season.
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Alcoa ( AA ) 'unofficially' kicks off the fourth quarter earnings season after the close today, and it promises to be a less-than-inspiring reporting cycle. ALCOA INC (AA): Free Stock Analysis Report To read this article on Zacks.com click here. Even the flat earnings growth expected this quarter is better than the negative earnings growth that was expected for the third quarter at the start of that earnings season.
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1462.0
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2013-01-07 00:00:00 UTC
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Earnings Preview: Alcoa Inc. - Analyst Blog
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AA
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https://www.nasdaq.com/articles/earnings-preview%3A-alcoa-inc.-analyst-blog-2013-01-07
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nan
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nan
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Alcoa Inc. ( AA ) is scheduled to report its fourth quarter and full-year 2012 results after the market closes on Tuesday, January 8. The Zacks Consensus Estimate for earnings for the quarter is 7 cents per share, representing a significant year-over-year estimated decline of 316.67%. For the full year, the Zacks Consensus Estimate for earnings is 24 cents per share, representing an estimated year-over-year decline of 66.02%.
With respect to earnings surprises, Alcoa has delivered an average negative earnings surprise of 25% over the trailing four quarters, implying that it has missed the Zacks Consensus Estimate by that measure.
Third Quarter Flashback
Alcoa reported a loss in the third quarter of 2012, hurt by a hefty charge associated with environmental remediation and legal settlement and lower aluminum pricing. The company posted a loss of $143 million or 13 cents per share in the quarter compared to a profit of $172 million or 15 cents per share in the year-ago quarter.
Excluding one-time special items (including a $175 million charge mainly related to environmental remediation of the Grasse River and the settlement of a civil lawsuit against Aluminum Bahrain), Alcoa earned $32 million or 3 cents per share in the quarter. Analysts polled by Zacks were expecting the company to report break-even results. The company recorded a $40 million charge associated with the legal settlement in the quarter.
Revenues decreased 9.1% year over year and 2.2% sequentially to $5,833 million, but were ahead of the Zacks Consensus Estimate of $5,565 million. Alcoa said that aluminum prices dropped 17% year over year and 5% sequentially in the third quarter.
Alcoa lowered its global aluminum demand forecast for 2012 to 6% from its earlier expectation of 7%, owing to the slowdown in China. The company, however, expects the aluminum market to double in 2020 from the 2010 levels as the market is already ahead of the required 6.5% compound annual growth rate.
Estimate Revisions Trend
Agreement
In the past 30 days, 2 analysts (out of 14) have revised their estimates upward while 5 have decreased their estimates for the fourth quarter. Over the last 7 days, none of the analysts raised their estimates while one downward revision was witnessed.
A similar trend is seen for full-year 2012 with 2 analysts (out of 15) having made upward revisions in the past 30 days while 6 moving in the opposite direction. While none of the analysts made any upward revision over the last 7 days, one of them moved downward.
Magnitude
Given the relative lack of movements, estimate for the fourth quarter has been static over the past week. The Zacks Consensus Estimate for the quarter has been reduced by a penny to 7 cents per share in the last 30 days.
For full-year 2012, estimate decreased by a penny to 24 cents per share over the past week and has reduced by 2 cents over the past month.
Our View
We believe that Alcoa's outlook depends on the uncertainties in the aluminum market. In addition, we remain concerned about the volatile aluminum pricing and rising raw material costs. We expect rising energy and raw material (especially caustic soda) costs to continue constrain margin.
Alcoa is pursuing strategies to move down its cost curves in its upstream businesses, and record profitability in its midstream and downstream businesses. In conjunction with the revenue targets, management is committed to improving margins that will exceed historical levels in the midstream and downstream operations. The company aims to achieve these goals by optimizing its portfolio and restructuring its high-cost assets.
The company trimmed its aluminum demand forecast for 2012 due to slowdown in China. Alcoa is divesting underperforming assets through its restructuring program and is aggressively pursuing cost-cutting actions. Moving ahead, higher demand in the aerospace and automotive markets is expected to drive results. However, weakness across building and construction and commercial transportation markets is expected to continue into the fourth quarter.
Alcoa faces stiff competition from Aluminum Corporation of China Limited ( ACH ) and Rio Tinto plc. ( RIO ). We currently have a long-term Neutral recommendation on Alcoa, which is in agreement with a short-term Zacks #3 Rank (Hold).
ALCOA INC (AA): Free Stock Analysis Report
ALUMINUM CP-ADR (ACH): Free Stock Analysis Report
RIO TINTO-ADR (RIO): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alcoa Inc. ( AA ) is scheduled to report its fourth quarter and full-year 2012 results after the market closes on Tuesday, January 8. ALCOA INC (AA): Free Stock Analysis Report ALUMINUM CP-ADR (ACH): Free Stock Analysis Report RIO TINTO-ADR (RIO): Free Stock Analysis Report To read this article on Zacks.com click here. In conjunction with the revenue targets, management is committed to improving margins that will exceed historical levels in the midstream and downstream operations.
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ALCOA INC (AA): Free Stock Analysis Report ALUMINUM CP-ADR (ACH): Free Stock Analysis Report RIO TINTO-ADR (RIO): Free Stock Analysis Report To read this article on Zacks.com click here. Alcoa Inc. ( AA ) is scheduled to report its fourth quarter and full-year 2012 results after the market closes on Tuesday, January 8. For the full year, the Zacks Consensus Estimate for earnings is 24 cents per share, representing an estimated year-over-year decline of 66.02%.
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ALCOA INC (AA): Free Stock Analysis Report ALUMINUM CP-ADR (ACH): Free Stock Analysis Report RIO TINTO-ADR (RIO): Free Stock Analysis Report To read this article on Zacks.com click here. Alcoa Inc. ( AA ) is scheduled to report its fourth quarter and full-year 2012 results after the market closes on Tuesday, January 8. The company posted a loss of $143 million or 13 cents per share in the quarter compared to a profit of $172 million or 15 cents per share in the year-ago quarter.
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Alcoa Inc. ( AA ) is scheduled to report its fourth quarter and full-year 2012 results after the market closes on Tuesday, January 8. ALCOA INC (AA): Free Stock Analysis Report ALUMINUM CP-ADR (ACH): Free Stock Analysis Report RIO TINTO-ADR (RIO): Free Stock Analysis Report To read this article on Zacks.com click here. For the full year, the Zacks Consensus Estimate for earnings is 24 cents per share, representing an estimated year-over-year decline of 66.02%.
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1463.0
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2013-01-07 00:00:00 UTC
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Earnings Season Starts This Week - Analyst Blog
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AA
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https://www.nasdaq.com/articles/earnings-season-starts-week-analyst-blog-2013-01-07
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nan
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nan
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With nothing much on theeconomic calendarthis week, the market's attention will likely shift to the fourth quarter earnings season which gets under way with Alcoa's ( AA ) report after the close on Tuesday. The reporting season gets into high gear next week as the big banks report results, but a number of major companies, including Wells Fargo ( WFC ) and Monsanto ( MON ), will come out with fourth quarter results this week.
All indicators are pointing towards another underwhelming earnings season, not much different from what we saw in the third-quarter reporting cycle. But while expectations for fourth quarter earnings have been steadily coming down in recent weeks, investors appear unwilling to bring down estimates for 2013 as they hold on to hopes of a ramp in corporate profitability in the coming quarters. Guidance from management teams on earnings calls is always very important, but it is particularly important this reporting season given the lofty-looking earnings expectations for 2013.
Total earnings in the fourth quarter are expected to be up +0.4% from the same period last year. This is a sharp drop from the +7% earnings growth rate that consensus expected just three months ago.
Overall, ten of the 16 Zacks sectors will have negative earnings growth, with even the Tech sector experiencing earnings decline of -3.5% (Tech sector earnings were barely in the positive column in the preceding quarter). The Construction sector has the best earnings growth profile off all sectors, a function of the positive momentum in the housing sector. Total earnings in the Construction sector are expected to up +33.3% in the fourth quarter. The only other sector with double-digit earnings growth this quarter is Business Services.
The key question at this stage is whether the stock market momentum can be sustained in the face of negative momentum on the estimate revisions front. The bulls point towards the attractiveness of equities relative to other asset classes and pin their hopes on an expanding market multiple and declining risk premiums. Maybe the bulls have a point, but it will still pay to stay focused on the evolving earnings picture in the coming days.
ALCOA INC (AA): Free Stock Analysis Report
MONSANTO CO-NEW (MON): Free Stock Analysis Report
WELLS FARGO-NEW (WFC): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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With nothing much on theeconomic calendarthis week, the market's attention will likely shift to the fourth quarter earnings season which gets under way with Alcoa's ( AA ) report after the close on Tuesday. ALCOA INC (AA): Free Stock Analysis Report MONSANTO CO-NEW (MON): Free Stock Analysis Report WELLS FARGO-NEW (WFC): Free Stock Analysis Report To read this article on Zacks.com click here. The bulls point towards the attractiveness of equities relative to other asset classes and pin their hopes on an expanding market multiple and declining risk premiums.
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ALCOA INC (AA): Free Stock Analysis Report MONSANTO CO-NEW (MON): Free Stock Analysis Report WELLS FARGO-NEW (WFC): Free Stock Analysis Report To read this article on Zacks.com click here. With nothing much on theeconomic calendarthis week, the market's attention will likely shift to the fourth quarter earnings season which gets under way with Alcoa's ( AA ) report after the close on Tuesday. The reporting season gets into high gear next week as the big banks report results, but a number of major companies, including Wells Fargo ( WFC ) and Monsanto ( MON ), will come out with fourth quarter results this week.
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ALCOA INC (AA): Free Stock Analysis Report MONSANTO CO-NEW (MON): Free Stock Analysis Report WELLS FARGO-NEW (WFC): Free Stock Analysis Report To read this article on Zacks.com click here. With nothing much on theeconomic calendarthis week, the market's attention will likely shift to the fourth quarter earnings season which gets under way with Alcoa's ( AA ) report after the close on Tuesday. But while expectations for fourth quarter earnings have been steadily coming down in recent weeks, investors appear unwilling to bring down estimates for 2013 as they hold on to hopes of a ramp in corporate profitability in the coming quarters.
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With nothing much on theeconomic calendarthis week, the market's attention will likely shift to the fourth quarter earnings season which gets under way with Alcoa's ( AA ) report after the close on Tuesday. ALCOA INC (AA): Free Stock Analysis Report MONSANTO CO-NEW (MON): Free Stock Analysis Report WELLS FARGO-NEW (WFC): Free Stock Analysis Report To read this article on Zacks.com click here. But while expectations for fourth quarter earnings have been steadily coming down in recent weeks, investors appear unwilling to bring down estimates for 2013 as they hold on to hopes of a ramp in corporate profitability in the coming quarters.
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1464.0
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2013-01-07 00:00:00 UTC
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Critical Earnings Season Begins Tomorrow
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AA
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https://www.nasdaq.com/articles/critical-earnings-season-begins-tomorrow-2013-01-07
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nan
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nan
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Alcoa ( AA ) reports fourth-quarter earnings tomorrow, unofficially kicking off what is shaping up to be a pivotal earnings season.
With the fiscal cliff averted but another debt ceiling looming at the end of February, financial markets are seemingly at a historical crossroads.
When Wall Street opened its doors this morning, the S&P 500 was at its highest level in five years after last week's 4.6% post-fiscal cliff surge . By many accounts, this market is overbought, and has nowhere to go but down.
However, January and February have been boom months for stocks the last two years. With no more fiscal cliff to hold them back, why should this year be any different?
There are several reasons.
For one, any boost stemming from Congress' last-minute (literally) deal to avoid the fiscal cliff is probably already baked into the equation after last week's huge move. Also, because Congress left many stones unturned in its bare-bones compromise - a new debt ceiling set to expire at the end of February, deferred spending cuts scheduled to go into effect in early March, etc. - Wall Street's collective sigh of relief last week likely pushed stocks too high.
Between the joy of avoiding the fiscal cliff and the angst that accompanies any debt ceiling deadline (see July 2011 ), investors are faced with an almost unprecedented set of circumstances. Who knows which way the market winds will blow over the next couple months?
With so much uncertainty, the upcoming earnings results should have a major bearing on where stocks go next. Let's hope they're better than last season's disappointing round of earnings.
Fewer companies beat revenue estimates in the third quarter than at any time since the recession. As a result, stocks spiraled downward for a month, with the S&P 500 shedding more than 100 points from October 17 to November 15.
Election and fiscal cliff uncertainty contributed to the pullback. While the new set of question marks may seem trivial by comparison, they will begin to seep into investors' collective psyche if Congress stays true to form and waits until the absolute last minute again to avoid a debt default.
A stronger round of earnings could do a lot to offset that uncertainty. Without overstating things too much, tomorrow's Alcoa report could tell us a lot about what we should expect in the coming weeks.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alcoa ( AA ) reports fourth-quarter earnings tomorrow, unofficially kicking off what is shaping up to be a pivotal earnings season. Also, because Congress left many stones unturned in its bare-bones compromise - a new debt ceiling set to expire at the end of February, deferred spending cuts scheduled to go into effect in early March, etc. Between the joy of avoiding the fiscal cliff and the angst that accompanies any debt ceiling deadline (see July 2011 ), investors are faced with an almost unprecedented set of circumstances.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Alcoa ( AA ) reports fourth-quarter earnings tomorrow, unofficially kicking off what is shaping up to be a pivotal earnings season. With the fiscal cliff averted but another debt ceiling looming at the end of February, financial markets are seemingly at a historical crossroads.
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Alcoa ( AA ) reports fourth-quarter earnings tomorrow, unofficially kicking off what is shaping up to be a pivotal earnings season. With the fiscal cliff averted but another debt ceiling looming at the end of February, financial markets are seemingly at a historical crossroads. Between the joy of avoiding the fiscal cliff and the angst that accompanies any debt ceiling deadline (see July 2011 ), investors are faced with an almost unprecedented set of circumstances.
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Alcoa ( AA ) reports fourth-quarter earnings tomorrow, unofficially kicking off what is shaping up to be a pivotal earnings season. Between the joy of avoiding the fiscal cliff and the angst that accompanies any debt ceiling deadline (see July 2011 ), investors are faced with an almost unprecedented set of circumstances. A stronger round of earnings could do a lot to offset that uncertainty.
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1465.0
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2013-01-07 00:00:00 UTC
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A Look Ahead: This Week's ETFs to Watch
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AA
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https://www.nasdaq.com/articles/look-ahead-weeks-etfs-watch-2013-01-07
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nan
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nan
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What a relief! U.S. lawmakers finally reached a compromise to avert the fiscal cliff last week and the result for stocks in a holiday-shortened week was palpable. In just 3.5 trading days, the S&P 500 notched its best weekly performance in 13 months.
On the week, the S&P 500 surged 4.6 percent while the Dow Jones Industrial Average added 3.8 percent. The S&P 500 added 1.7 percent on New Years Eve and 2.5 percent on January 2.
So with the fiscal cliff in the rear view mirror, the market can turn its attention to more pressing issues. Those include the start of fourth-quarter earnings season, which kicks off in earnest Tuesday with Alcoa's (NYSE: AA ) after-the-bell report, and the looming debt ceiling debate.
Headline and stock-specific risk promises to be bountiful for the duration of January and with that in mind, the following ETFs should offer valid trading opportunities in the week ahead.
Vanguard Financials ETF (NYSE: VFH ) In case you did not get the memo, bank stocks, one of 2012's leadership groups, are trying to retain that role in 2013. Last week, Dow components Bank of America (NYSE: BAC ) and J.P. Morgan Chase added 6.6 percent and 4.9 percent, respectively. The bank stock rally was enough to lift VFH, which recently saw its expense ratio reduced , by 4.5 percent last week.
Bank earnings do not kick into high gear until next week, but Wells Fargo (NYSE: WFC ), VFH's largest holding with an allocation of 7.1 percent, is scheduled to deliver results this Friday.
Guggenheim Solar ETF (NYSE: TAN ) Solar equities and ETFs still have their share of detractors , but that has not seemed to bother the Guggenheim Solar ETF in recent weeks. TAN has surged 40 percent in the past month, buoyed by an array of helpful ranging from China's efforts to support its ailing solar firms to Warren Buffett's Berkshire Hathaway (NYSE: BRK-A) buying two unfinished projects from SunPower (NASDAQ: SPWR ).
Last week alone, TAN climbed over 19 percent, leading investors to ponder several scenarios regarding the solar sector. First, and most obvious, is this is a case of too much too soon? Second, how much of the recent rally in solar stocks and ETFs is attributable to short-covering? Finally, have the solar sector's fundamental issues dramatically changed for the better simply because the calendar changed to 2013 from 2012?
iShares High Dividend Equity Fund (NYSE: HDV ) With the fiscal cliff averted and the tax rate on dividends set to rise only on those U.S. households with $450,000 or more in annual income, 2013 has the potential to be another great for year income investors in terms of dividend increases. Importantly, the first quarter is when a plethora of blue chip companies announced increased payouts.
That does increase the allure of the iShares High Dividend Equity Fund, which is home to such venerable dividend payers such as AT&T (NYSE: T ), Johnson & Johnson (NYSE: JNJ ) and Philip Morris (NYSE: PM ). The fiscal cliff debate has weighed on HDV, which is up just half a percent in the past month. However, the fund is found flirting with its all-time highs. Should the market environment turn turbulent, HDV's allure increases because the fund has a beta of just 0.35 against the S&P 500, according to iShares data .
For more on ETFs, click here .
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Those include the start of fourth-quarter earnings season, which kicks off in earnest Tuesday with Alcoa's (NYSE: AA ) after-the-bell report, and the looming debt ceiling debate. Bank earnings do not kick into high gear until next week, but Wells Fargo (NYSE: WFC ), VFH's largest holding with an allocation of 7.1 percent, is scheduled to deliver results this Friday. TAN has surged 40 percent in the past month, buoyed by an array of helpful ranging from China's efforts to support its ailing solar firms to Warren Buffett's Berkshire Hathaway (NYSE: BRK-A) buying two unfinished projects from SunPower (NASDAQ: SPWR ).
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Those include the start of fourth-quarter earnings season, which kicks off in earnest Tuesday with Alcoa's (NYSE: AA ) after-the-bell report, and the looming debt ceiling debate. Guggenheim Solar ETF (NYSE: TAN ) Solar equities and ETFs still have their share of detractors , but that has not seemed to bother the Guggenheim Solar ETF in recent weeks. iShares High Dividend Equity Fund (NYSE: HDV ) With the fiscal cliff averted and the tax rate on dividends set to rise only on those U.S. households with $450,000 or more in annual income, 2013 has the potential to be another great for year income investors in terms of dividend increases.
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Those include the start of fourth-quarter earnings season, which kicks off in earnest Tuesday with Alcoa's (NYSE: AA ) after-the-bell report, and the looming debt ceiling debate. Guggenheim Solar ETF (NYSE: TAN ) Solar equities and ETFs still have their share of detractors , but that has not seemed to bother the Guggenheim Solar ETF in recent weeks. iShares High Dividend Equity Fund (NYSE: HDV ) With the fiscal cliff averted and the tax rate on dividends set to rise only on those U.S. households with $450,000 or more in annual income, 2013 has the potential to be another great for year income investors in terms of dividend increases.
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Those include the start of fourth-quarter earnings season, which kicks off in earnest Tuesday with Alcoa's (NYSE: AA ) after-the-bell report, and the looming debt ceiling debate. So with the fiscal cliff in the rear view mirror, the market can turn its attention to more pressing issues. Vanguard Financials ETF (NYSE: VFH ) In case you did not get the memo, bank stocks, one of 2012's leadership groups, are trying to retain that role in 2013.
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1466.0
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2013-01-07 00:00:00 UTC
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Alcoa's Q4 Earnings: Aluminum Prices Will Weigh On Results
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https://www.nasdaq.com/articles/alcoas-q4-earnings-aluminum-prices-will-weigh-results-2013-01-07
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Alcoa ( AA ) will kick off this quarter's earnings season when it announces its Q4 results after the market closes on Tuesday, January 8. Alcoa's results are closely eyed as it usually is the first Dow company to post earnings. We expect the company to record soft earnings, but most investors will watch for any cues on its outlook. Aluminum prices and demand remain sluggish due to global economic conditions. Also, aluminum inventory continues to remain high relative to demand, keeping a further lid on London Metal Exchange (LME) prices for aluminum.
In December, the rating agency Moody's put Alcoa's debt rating on review for a possible downgrade citing a challenging operating environment and a fall in aluminum prices this year. According to Moody's, aluminum prices are not expected to show significant recovery over the next several quarters.
Aluminum prices on the London Metal Exchange, which are used as a benchmark by the company to determine its own prices, have averaged $2,051 this year. This is 15% lower than last year. Prices touched a 34-month low in August as global supply exceeded demand.
Alcoa's management has taken certain steps to meet challenges. It is making efforts to reduce its debt from present levels of $8.3 billion, shifting its focus to value added products used in the aerospace industry and cutting capacity in smelters to streamline operations.
See Full Analysis for Alcoa Here
Importance Of Aluminum Prices For Alcoa
Alcoa is organized into four business segments: Alumina, which mines bauxite and processes it into the precursor to aluminum; Primary Metals, which smelts aluminum; Flat-rolled Products, which makes sheets used in beverage cans as well as airplane wings and car parts; and Engineered Products and Solutions, which makes aerospace fasteners, turbine blades and truck wheels. While the Flat-rolled and Engineered Products and Solutions divisions produce value-added products and thus generate higher margins, a significant proportion of Alcoa's earnings still come from the Alumina and Primary Metals divisions. This makes its earnings highly sensitive to aluminum prices.
Aluminum Price Trend In Q4
The continuing European debt crisis, slowing Chinese growth, and the U.S. fiscal cliff situation have contributed to the decline in aluminum demand and prices over the last few quarters. The price trend chart on the London Metal Exchange (LME) shows aluminum prices falling steeply from nearly $2,100 at the beginning of Q4 to breach $1,900 before rallying back steadily to about $2,100 as of today. However, prices failed to breach the $2,200 mark throughout the quarter. As mentioned before, we think that high inventory levels are keeping a lid on prices. While LME prices are not the actual realized prices for Alcoa, they do indicate a broader trend in global aluminum prices.
What Does The Fiscal Cliff Deal Mean For Alcoa?
A fiscal cliff deal was reached and ratified at the beginning of 2013 and Alcoa stock prices received some boost. However, at this point it would too early to claim a positive long term gain. Manufacturers and the rest of the U.S. economy still face uncertainty on the debt ceiling, in addition to the delayed budget cuts. At best, it seems like the can has been kicked down the road.
What Is Alcoa's Management Doing To Meet Challenges?
Alcoa's management claims to be working to increase Alcoa's profitability in divisions that produce engineered products and supply aerospace customers while cutting costs in its mining and smelting segments. In October, Alcoa cut its 2012 global aluminum demand forecast to 6% from 7%, but maintained its long-term outlook that aluminum demand will double in 2020 from 2010 levels.
Alcoa reported an operating loss figure of $143 million in Q3 2012. We think that the company should pare down its debt (currently $8.3 billion) in line with its lower earnings rate. Alcoa claimed on its Investor Day in November that it has cut $5 billion in costs since 2008 through productivity improvements such as increasing yields out of its refineries and streamlining operations by cutting capacity in smelters.
Alcoa says that it has cut its near-term maturities to roughly $400 million over the next four years (excluding 2014 convertible bonds), and expects net debt to be down 30% from 2008 to between $6.8 billion and $7.1 billion by end of 2012.
The company's recent strategy realignment and capacity cuts for smelters and alumina refining should continue to drive productivity improvement. Further, its Saudi Arabian project is on track and is expected to start full-fledged operations in early 2013. This will help the company's efforts to geographically diversify its operations. Additionally, vertical integration should help the company maintain healthy margins even with depressed prices.
We believe that Alcoa's long-term fundamentals are strong while it continues to face near term headwinds. What Alcoa can and must do is to focus more on engineered products to improve margins and earnings. In an environment of slow economic growth, it would be a stretch to expect aluminum prices to trend upwards because it is primarily an industrial metal.
We have a Trefis price estimate for Alcoa of $10 which will be revised after the fourth quarter earnings results.
Understand How a Company's Products Impact its Stock at Trefis
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alcoa ( AA ) will kick off this quarter's earnings season when it announces its Q4 results after the market closes on Tuesday, January 8. It is making efforts to reduce its debt from present levels of $8.3 billion, shifting its focus to value added products used in the aerospace industry and cutting capacity in smelters to streamline operations. The company's recent strategy realignment and capacity cuts for smelters and alumina refining should continue to drive productivity improvement.
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Alcoa ( AA ) will kick off this quarter's earnings season when it announces its Q4 results after the market closes on Tuesday, January 8. Also, aluminum inventory continues to remain high relative to demand, keeping a further lid on London Metal Exchange (LME) prices for aluminum. The price trend chart on the London Metal Exchange (LME) shows aluminum prices falling steeply from nearly $2,100 at the beginning of Q4 to breach $1,900 before rallying back steadily to about $2,100 as of today.
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Alcoa ( AA ) will kick off this quarter's earnings season when it announces its Q4 results after the market closes on Tuesday, January 8. See Full Analysis for Alcoa Here Importance Of Aluminum Prices For Alcoa Alcoa is organized into four business segments: Alumina, which mines bauxite and processes it into the precursor to aluminum; Primary Metals, which smelts aluminum; Flat-rolled Products, which makes sheets used in beverage cans as well as airplane wings and car parts; and Engineered Products and Solutions, which makes aerospace fasteners, turbine blades and truck wheels. Aluminum Price Trend In Q4 The continuing European debt crisis, slowing Chinese growth, and the U.S. fiscal cliff situation have contributed to the decline in aluminum demand and prices over the last few quarters.
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Alcoa ( AA ) will kick off this quarter's earnings season when it announces its Q4 results after the market closes on Tuesday, January 8. It is making efforts to reduce its debt from present levels of $8.3 billion, shifting its focus to value added products used in the aerospace industry and cutting capacity in smelters to streamline operations. Aluminum Price Trend In Q4 The continuing European debt crisis, slowing Chinese growth, and the U.S. fiscal cliff situation have contributed to the decline in aluminum demand and prices over the last few quarters.
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1467.0
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2013-01-06 00:00:00 UTC
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Alcoa Earnings Preview: Lower Fourth-Quarter Revenue Expected
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https://www.nasdaq.com/articles/alcoa-earnings-preview-lower-fourth-quarter-revenue-expected-2013-01-06
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Alcoa (NYSE: AA ), shares of which have surged about eight percent in the past week, is scheduled to report its fourth-quarter 2012 results Tuesday, January 8, after the markets close. Investors will be looking to see how much the sluggish global economy, particularly in China and in Europe, will drag on earnings. Moody's recently warned that it might downgrade Alcoa, in part due to its debt load.
Expectations
Analysts on average predict that Alcoa will report revenue for the quarter that fell more than six percent year-over-year to $5.61 billion. Per-share earnings are expected to come to $0.06, compared to a net loss of $0.03 per share in the same quarter of last year. That consensus earnings estimate has slipped in the past 60 days from $0.08 per share. Alcoa has not fallen short of earnings expectations in the past four quarters. The third quarter adjusted profit of $0.03 surprised analysts, who had expected Alcoa to break even.
Alcoa attributed the third quarter results to stronger demand for aluminum products from airplane and automobile producers. But it also posted charges for settlements with the Environmental Protection Agency and a joint venture partner in Bahrain, and it lowered its aluminum demand expectations for the fourth quarter, largely due to China's economic slowdown. The share price pulled back almost five percent in the week following the third-quarter report.
The analysts' consensus full-year forecast calls $0.24 per share earnings on revenue of $23.36 billion. That compares to $0.72 per share and $24.95 billion in the previous year. That consensus EPS estimate has declined in the past 60 days from $0.26.
The Company
Alcoa is the world's third largest producer of aluminum. The company operates in four segments: Alumina, Primary Metals, Flat-Rolled Products, and Engineered Products and Solutions. This S&P 500 and Dow Jones Industrial Average component has a market capitalization near $9.9 billion and its operational headquarters are in Pittsburgh. Klaus Kleinfeld has been the chief executive since May 2008.
Alcoa's two larger competitors are privately held Rio Tinto Alcan and RUSAL. It also competes with Aluminum Corporation of China (NYSE: ACH ). The latter is expected to report net losses for the fourth quarter and the full year.
During the three months that ended in December, Alcoa sent its first shipment of alumina to a new joint venture-run facility in Saudi Arabia, completed the sale of a hydroelectric project located in Tennessee and opened an aluminum wheel facility in China.
Performance
Alcoa's long-term EPS growth forecast is more than 10 percent, and the forward earnings multiple is less than the industry average price-to-earnings (P/E) ratio. The operating margin is greater than the industry average, but the return on equity is in negative territory. The number of shares sold short is more than six percent of the float, the highest it has been since the end of October.
Only six of the 19 analysts surveyed by Thomson/First Call who follow the stock recommend buying shares; 10 of them recommend holding shares. However, the analysts believe the stock has some room to run as their mean price target represents almost 11 percent potential upside. But that target price is less than the 52-week high from early last year.
Shares flirted with the 52-week low in mid-November, but they have risen about 15 percent since then. As previously mentioned, the share price jumped about eight percent in the past week. It crossed above the 200-day moving average for the first time since September. Over the past six months, the stock has underperformed Aluminum Corp. of China, but its performance has been in line with the DJIA.
ACTION ITEMS
Bullish: Investors interested in exchange traded funds invested in Alcoa might want to consider the following trades:
iShares Dow Jones U.S. Basic Materials (NYSE: IYM ) is almost nine percent higher than a month ago. Materials Select Sector SPDR (NYSE: XLB ) is about eight percent higher than a month ago. Vanguard Materials ETF (NYSE: VAW ) is about seven percent higher than a month ago.
Bearish: Traders may prefer to consider these alternative positions in the same sector:
Alpha Natural Resources (NYSE: ANR ) is up more than 29 percent in the past month. Cliffs Natural Resources (NYSE: CLF ) is up more than 28 percent in the past month. Companhia Siderurgica Nacional (NYSE: SID ) is up more than 20 percent in the past month. Vale (NYSE: VALE ) is up almost 18 percent in the past month. (c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alcoa (NYSE: AA ), shares of which have surged about eight percent in the past week, is scheduled to report its fourth-quarter 2012 results Tuesday, January 8, after the markets close. But it also posted charges for settlements with the Environmental Protection Agency and a joint venture partner in Bahrain, and it lowered its aluminum demand expectations for the fourth quarter, largely due to China's economic slowdown. Performance Alcoa's long-term EPS growth forecast is more than 10 percent, and the forward earnings multiple is less than the industry average price-to-earnings (P/E) ratio.
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Alcoa (NYSE: AA ), shares of which have surged about eight percent in the past week, is scheduled to report its fourth-quarter 2012 results Tuesday, January 8, after the markets close. But it also posted charges for settlements with the Environmental Protection Agency and a joint venture partner in Bahrain, and it lowered its aluminum demand expectations for the fourth quarter, largely due to China's economic slowdown. The analysts' consensus full-year forecast calls $0.24 per share earnings on revenue of $23.36 billion.
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Alcoa (NYSE: AA ), shares of which have surged about eight percent in the past week, is scheduled to report its fourth-quarter 2012 results Tuesday, January 8, after the markets close. Expectations Analysts on average predict that Alcoa will report revenue for the quarter that fell more than six percent year-over-year to $5.61 billion. Performance Alcoa's long-term EPS growth forecast is more than 10 percent, and the forward earnings multiple is less than the industry average price-to-earnings (P/E) ratio.
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Alcoa (NYSE: AA ), shares of which have surged about eight percent in the past week, is scheduled to report its fourth-quarter 2012 results Tuesday, January 8, after the markets close. Alcoa attributed the third quarter results to stronger demand for aluminum products from airplane and automobile producers. The analysts' consensus full-year forecast calls $0.24 per share earnings on revenue of $23.36 billion.
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1468.0
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2013-01-04 00:00:00 UTC
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Market Close Report: NASDAQ trading volume joins the top ten ranking for the year. NASDAQ Composite Index closes at 3,101.66
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https://www.nasdaq.com/articles/market-close-report-nasdaq-trading-volume-joins-top-ten-ranking-year-nasdaq-composite-71
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Today's session closes with the NASDAQ Composite Index volume reaching the 2nd place in the top ten list for this year. The last time the index closed above 0.22 billion shares was on 00 Wed 2013. The total shares traded for the NASDAQ was over 1.7 billion.
Advancers stocks led declining by 1.77 to 1 ratio. There were 1582 advancers and 894 decliners for the day. On the NASDAQ Stock Exchange 72 stocks reached a 52 week high and 3 those reaching lows totaled. The most active, advancers, decliners, unusual volume and most active by dollar volume can be monitored intraday on the Most Active Stocks page.
The NASDAQ 100 index closed down -.28% for the day; a total of -7.77 points. The current value is 2,724.49. Apple Inc. ( AAPL ) had the largest percent change down (-2.78%) while Facebook, Inc. ( FB ) had the largest percent change gain rising 3.56%.
The Dow Jones index closed up .33% for the day; a total of 43.85 points. The current value is 13,435.21. Microsoft Corporation ( MSFT ) had the largest percent change down (-1.87%) while Alcoa Inc. ( AA ) had the largest percent change gain rising 2.09%.
NASDAQ Market Wrap
As of 1/4/2013 4:45:03 PM
NASDAQ COMPOSITE INDEX 2nd VOLUME MILESTONE1.7 billion JOINS 2013TOP TEN 72 STOCKS REACHED A 52 WEEK HIGH 3 THOSE REACHING LOWS TOTALEDFacebook, Inc.[FB]TOPS ADVANCERS LISTOF NASDAQ 100 % 3.56 INDEXFB ROSE
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. ( AAPL ) had the largest percent change down (-2.78%) while Facebook, Inc. ( FB ) had the largest percent change gain rising 3.56%. Microsoft Corporation ( MSFT ) had the largest percent change down (-1.87%) while Alcoa Inc. ( AA ) had the largest percent change gain rising 2.09%. Today's session closes with the NASDAQ Composite Index volume reaching the 2nd place in the top ten list for this year.
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Apple Inc. ( AAPL ) had the largest percent change down (-2.78%) while Facebook, Inc. ( FB ) had the largest percent change gain rising 3.56%. Microsoft Corporation ( MSFT ) had the largest percent change down (-1.87%) while Alcoa Inc. ( AA ) had the largest percent change gain rising 2.09%. On the NASDAQ Stock Exchange 72 stocks reached a 52 week high and 3 those reaching lows totaled.
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Apple Inc. ( AAPL ) had the largest percent change down (-2.78%) while Facebook, Inc. ( FB ) had the largest percent change gain rising 3.56%. Microsoft Corporation ( MSFT ) had the largest percent change down (-1.87%) while Alcoa Inc. ( AA ) had the largest percent change gain rising 2.09%. On the NASDAQ Stock Exchange 72 stocks reached a 52 week high and 3 those reaching lows totaled.
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Apple Inc. ( AAPL ) had the largest percent change down (-2.78%) while Facebook, Inc. ( FB ) had the largest percent change gain rising 3.56%. Microsoft Corporation ( MSFT ) had the largest percent change down (-1.87%) while Alcoa Inc. ( AA ) had the largest percent change gain rising 2.09%. There were 1582 advancers and 894 decliners for the day.
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1469.0
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2013-01-04 00:00:00 UTC
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Markets End the Week with Solid Gains
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https://www.nasdaq.com/articles/markets-end-week-solid-gains-2013-01-04
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After a few brief trips into the red, the Dow Jones Industrial Average (DJI) spent the day in positive territory, finishing almost 44 points higher. "Markets have been quite resilient and managed to churn higher today throughout the session, finishing near their intraday peak," observed Schaeffer's Senior Equity Analyst Joe Bell.
Continue reading for more on today's market, including :
Tips for trading a potential gold rally , from Senior Options Strategist Tony Venosa, CMT.
How Alcoa ( AA ) option traders are speculating ahead of earnings.
Are VIX calls a buy? Schaeffer's contributor Adam Warner weighs the pros and cons.
plus...
The latest employment figures, Sprint Nextel ( S ) bulls reach for the stars, and some heavy-handed skepticism in our Tweet of the day.
The Dow Jones Industrial Average (DJI) enjoyed modest gains today, rising 43.9 points, or 0.3%. Gains were fairly broad, as 23 of the index's components were higher, led by Alcoa ( AA ), which rose 2.1%. While Hewlett-Packard ( HPQ ) closed unchanged, Microsoft ( MSFT ) was the worst performer on the day, down 1.9%. For the week, the Dow closed up 3.8%.
The S&P 500 Index (SPX) moved up 7.1 points, or 0.5%, on Friday, while the Nasdaq Composite (COMP) was little changed, up 1 point, or 0.04%. On a weekly basis, the SPX rose 4.6% and the COMP tacked on 4.8%.
The CBOE Market Volatility Index (VIX) continued its dramatic backslide, giving back 5%, or 0.7 point. For the week, the index suffered a whopping 39.1% drop.
A Trader's Take :
"The day got off to a good start with the solid nonfarm payrolls report. Financial stocks had a nice day, while technology issues were among the weaker-performing sectors," Bell observed. "Overall, though, investors still seem to be taking a little rest after the big run up earlier in the week," he added.
3 Things to Know About Today's Market :
Nonfarm payrolls numbers for December rose by a seasonally adjusted 155,000, which narrowly exceeded economists' expectations. The unemployment rate held at 7.8%, after November's reading was revised a notch higher from the originally reported 7.7%. In other economic news, factory orders were unchanged in November from the previous month, falling short of estimates for a slight rise of 0.1%.
Congress approved a $9.7 billion aid package for victims of Superstorm Sandy, which will go toward pending flood insurance claims. This is merely the tip of the proverbial iceberg for federal aid, however, as the House will vote on Jan. 15 on an additional $51 billion in relief. Amid the fiscal-cliff crisis, this vote had been postponed by House Speaker John Boehner, R-Ohio (spurring great criticism from Northeast politicians).
General Motors ( GM ) is recalling 69,000 vehicles from across the globe, as several of its models -- including the Cadillac Escalade and Silverado pickup truck -- may have steering-column problems that could cause the vehicles to roll away. All of the models involved are from 2013, and many were not even sold yet. GM officials expect only a very small number of vehicles actually contained the defect.
Plus ... Dave Mustaine -- the outspoken frontman for '80s metal band Megadeth -- took to the Internet to log a passionate complaint against men's apparel retailer Men's Wearhouse (MW). Mustaine claims to have ordered a gift card for his tour manager that had not been delivered more than a week later, despite promises for two-day delivery. Included in the musician's rant on the retailer's Facebook page was the promise that "I for one, will never set foot in a Men's Wearhouse, even for a shelter from a blizzard ... I absolutely GUARANTEE it," he added, poking fun at the chain's catchphrase.
Today's Top Tweet :
"So consumers were holding back spending coz of fiscal cliff? I have a better chance of cameo on #kardashians than that being true"
@TFMkts, (TF Market Advisors), 6:00 p.m. (1/3/13)
5 Stocks We Were Watching Today :
Microsoft ( MSFT ) -- which is little changed over the last 52 weeks -- was reduced to a "hold" rating at Argus this morning.
Sprint Nextel ( S ) bulls are betting on a break to new historical highs.
Under Armour (UA) was targeted by short-term bearish traders.
Delta Air Lines (DAL) speculators expect a pullback in the next few weeks.
Pandora Media (P) traders bought short-term puts.
Question of the Day :
Q : What are the "Dogs of the Dow" for 2013?
A : In yesterday's Market Recap , we defined what the "Dogs of the Dow" theory is. So what stocks make up the 2013 list? The 10 stocks with the highest dividend yields in the Dow Jones Industrial Average, at the close of 2012, were as follows: AT&T (T), Verizon Communications (VZ), Intel (INTC), Merck (MRK), Pfizer (PFE), DuPont (DD), Hewlett-Packard ( HPQ ), General Electric (GE), McDonald's (MCD), and Johnson & Johnson (JNJ). As to whether this strategy works, the jury is still out .
For a look at today's options movers and commodities activity, head to page 2.
Commodities :
Oil futures for February rose 17 cents, or 0.2%, to end at $93.09 per barrel. Gold futures, on the other hand, moved sharply lower, surrendering $25.70, or 1.5%, to close at $1,648.90 per ounce. For the week, oil gained 2.5% while gold lost 0.4%.
At the end of every market day, the staff at Schaeffer's Investment Research reviews the trading day in detail, covering major events and key market developments. Don't miss this critical, timely and insightful report. If you enjoyed today's edition of Market Recap, sign up here for free daily delivery straight to your inbox.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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How Alcoa ( AA ) option traders are speculating ahead of earnings. Gains were fairly broad, as 23 of the index's components were higher, led by Alcoa ( AA ), which rose 2.1%. "Markets have been quite resilient and managed to churn higher today throughout the session, finishing near their intraday peak," observed Schaeffer's Senior Equity Analyst Joe Bell.
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How Alcoa ( AA ) option traders are speculating ahead of earnings. Gains were fairly broad, as 23 of the index's components were higher, led by Alcoa ( AA ), which rose 2.1%. Continue reading for more on today's market, including : Tips for trading a potential gold rally , from Senior Options Strategist Tony Venosa, CMT.
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How Alcoa ( AA ) option traders are speculating ahead of earnings. Gains were fairly broad, as 23 of the index's components were higher, led by Alcoa ( AA ), which rose 2.1%. I have a better chance of cameo on #kardashians than that being true" @TFMkts, (TF Market Advisors), 6:00 p.m. (1/3/13) 5 Stocks We Were Watching Today : Microsoft ( MSFT ) -- which is little changed over the last 52 weeks -- was reduced to a "hold" rating at Argus this morning.
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How Alcoa ( AA ) option traders are speculating ahead of earnings. Gains were fairly broad, as 23 of the index's components were higher, led by Alcoa ( AA ), which rose 2.1%. For the week, the Dow closed up 3.8%.
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1470.0
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2012-12-31 00:00:00 UTC
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Vale Is Staring At A Q4 Loss On Impairments And Additional Tax Charges
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https://www.nasdaq.com/articles/vale-staring-q4-loss-impairments-and-additional-tax-charges-2012-12-31
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Vale ( VALE ) seems all but certain to report a loss in the fourth quarter of the ongoing financial year. The company has suffered two major setbacks in the last few days. Firstly, it announced that it will book a $4.2 billion fourth-quarter pretax charge after lowering the valuation of a nickel mine and its stake in aluminum producer Norsk Hydro ASA. Also, last week the company announced tax losses of nearly $483 million relating to cases in Brazil and Switzerland. Of this, $451 million will be booked in the balance sheet for Q4 and the rest of the amount will be adjusted in the next financial year.
These two setbacks are only recent additions to a long list. Tumbling iron ore prices on a weak demand outlook, failure to begin docking Valemax ships in China due to permission issues, and the shelving of the Simandou project in Guinea due to an uncertain and adverse operating environment are some issues which have been highlighted frequently in the past. The company has been forced to contract its capital expenditure plans for next year and announce sale of non-core assets in order to reduce costs and improve efficiency. However, any gains due to these are certain to be negated due to the latest charges as far as earnings are concerned.
See Full Analysis of Vale Here
What Is The Reason For A Writedown In The Nickel Business?
Vale will take a $2.85 billion pretax writedown on its Brazilian nickel project Onca Puma. The problems in its nickel business have been festering for some time.
As reported in its third quarter earnings results, lackluster performance of the nickel segment has been one of the largest drags on profit. Vale has been trying to diversify away from iron ore and hopes that nickel would reduce its dependence on iron ore. However, it has had little to show for its $10 billion investment in the business so far. In the last few months, Vale's nickel mines in Canada have suffered shutdowns. Its Goro nickel-and-cobalt mine on the French Pacific island of New Caledonia, and Onca Puma, in Brazil's Amazon, are producing far below expected levels because of processing problems. The Goro mine, which was supposed to produce 60,000 tonnes of nickel a year, failed to produce any nickel or cobalt in the third quarter.
Finally, operations stopped at Onco Puma and prices for nickel declined. The writedown on account of the nickel business was therefore inevitable.
Why An Impairment In The Aluminum Business?
In addition to nickel, Vale also said that it will recognize a $1.3 billion pretax impairment on its 22% stake in Oslo-based Norsk Hydro, an aluminum producer. The company blamed the impairment on downward volatility in aluminum prices and macroeconomic uncertainties in the European economy. The rating agency Moody's cited more or less the same reasons when last week it placed Alcoa's ( AA ) rating on review for a potential downgrade. (( Alcoa May Be Cut to Junk by Moody's on Lower Aluminum , Bloomberg))
We think that aluminum prices are probably being driven not by fundamentals but investor sentiment and macroeconomic factors such as the Euro zone crisis, worries over mounting U.S. debt and the hotly debated fiscal cliff situation, and the slowdown in China. Fundamentals alone cannot explain the volatility that has been observed in aluminum prices this year. In any case, there isn't much Vale can do about its aluminum business. In an environment of slow economic growth, it would be a stretch to expect aluminum prices to trend upwards in the near future because it is primarily an industrial metal. (( LME Aluminum Price Graph , LME))
In addition to these impairment charges, Vale announced the settlement of two major tax disputes, at a considerably higher cost than originally envisaged. It settled a dispute with Swiss tax authorities over differences in interpretation of the federal tax breaks granted to Vale's international business in 2006 and the consequent tax liability figure. While the company had already set aside $37 million for the Swiss claim, it said it would now have to pay $232 million, which is almost six times that amount.
Vale settled another tax dispute over unpaid sales taxes in the state of Minas Gerais, Brazil's traditional mining hub. Here also, while Vale had provisioned $64 million for the case, its eventual liability would actually be five times higher at $317 million.
What Now?
This is not even the end of story. Vale said on December 6 that it will make impairment announcements in two stages. A second writedown worth around $50-$100 million on several different assets is expected to be announced with the release of the company's 2012 results. Vale is also contesting claims that it must pay as much as $14 billion (roughly 30 billion Brazilian reals) in back taxes on overseas earnings that were already taxed locally in those countries. The case is currently being reviewed by Brazil's Supreme Court and represents a mind-boggling potential financial liability.
Net income last quarter was $1.67 billion and the macroeconomic factors that caused the steep 66% year-over-year decline in profits remain largely unchanged this quarter. Thus, it's more or less a foregone conclusion that the company will report a steep loss this quarter. What will certainly be distressing for Vale management is the fact that the assets that the company is looking to sell will probably have to be used to compensate for these one-time losses. This will leave less resources for investment in capital projects next year which may have bearing on future growth. One of the assets being considered for sale is the company's stake in Norsk Hydro itself. The recent writedown may fetch a much lower valuation now.
We have a Trefis price estimate for Vale of $20 after the third quarter earnings results.
Understand How a Company's Products Impact its Stock at Trefis
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The rating agency Moody's cited more or less the same reasons when last week it placed Alcoa's ( AA ) rating on review for a potential downgrade. Firstly, it announced that it will book a $4.2 billion fourth-quarter pretax charge after lowering the valuation of a nickel mine and its stake in aluminum producer Norsk Hydro ASA. The company has been forced to contract its capital expenditure plans for next year and announce sale of non-core assets in order to reduce costs and improve efficiency.
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The rating agency Moody's cited more or less the same reasons when last week it placed Alcoa's ( AA ) rating on review for a potential downgrade. Firstly, it announced that it will book a $4.2 billion fourth-quarter pretax charge after lowering the valuation of a nickel mine and its stake in aluminum producer Norsk Hydro ASA. Vale will take a $2.85 billion pretax writedown on its Brazilian nickel project Onca Puma.
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The rating agency Moody's cited more or less the same reasons when last week it placed Alcoa's ( AA ) rating on review for a potential downgrade. Firstly, it announced that it will book a $4.2 billion fourth-quarter pretax charge after lowering the valuation of a nickel mine and its stake in aluminum producer Norsk Hydro ASA. In addition to nickel, Vale also said that it will recognize a $1.3 billion pretax impairment on its 22% stake in Oslo-based Norsk Hydro, an aluminum producer.
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The rating agency Moody's cited more or less the same reasons when last week it placed Alcoa's ( AA ) rating on review for a potential downgrade. Also, last week the company announced tax losses of nearly $483 million relating to cases in Brazil and Switzerland. Vale will take a $2.85 billion pretax writedown on its Brazilian nickel project Onca Puma.
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2012-12-24 00:00:00 UTC
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Market Close Report: NASDAQ Composite index closes at 3,012.60 down -8.41 points
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https://www.nasdaq.com/articles/market-close-report-nasdaq-composite-index-closes-301260-down-841-points-2012-12-24
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Monday's session closes with the NASDAQ Composite Index at 3,012.60. The total shares traded for the NASDAQ was over 0.61 billion. Declining stocks led advancers by 1.65 to 1 ratio. There were 918 advancers and 1518 decliners for the day. On the NASDAQ Stock Exchange 16 stocks reached a 52 week high and 5 those reaching lows totaled. The most active, advancers, decliners, unusual volume and most active by dollar volume can be monitored intraday on the Most Active Stocks page.
The NASDAQ 100 index closed down -.25% for the day; a total of -6.62 points. The current value is 2,658.05. Research in Motion Limited ( RIMM ) had the largest percent change down (-2.75%) while Facebook, Inc. ( FB ) had the largest percent change gain rising 2.55%.
The Dow Jones index closed down -.39% for the day; a total of -51.76 points. The current value is 13,139.08. Hewlett-Packard Company ( HPQ ) had the largest percent change down (-2.3%) while Alcoa Inc. ( AA ) had the largest percent change gain rising .58%.
NASDAQ Market Wrap
As of 12/24/2012 2:15:59 PM
BILLIONS OF 0.61 NASDAQ SHARES TRADED TODAY 16 STOCKS REACHED A 52 WEEK HIGH 5 THOSE REACHING LOWS TOTALEDFacebook, Inc.[FB]TOPS ADVANCERS LISTOF NASDAQ 100 % 2.55 INDEXFB ROSE
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Hewlett-Packard Company ( HPQ ) had the largest percent change down (-2.3%) while Alcoa Inc. ( AA ) had the largest percent change gain rising .58%. The NASDAQ 100 index closed down -.25% for the day; a total of -6.62 points. Research in Motion Limited ( RIMM ) had the largest percent change down (-2.75%) while Facebook, Inc. ( FB ) had the largest percent change gain rising 2.55%.
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Hewlett-Packard Company ( HPQ ) had the largest percent change down (-2.3%) while Alcoa Inc. ( AA ) had the largest percent change gain rising .58%. On the NASDAQ Stock Exchange 16 stocks reached a 52 week high and 5 those reaching lows totaled. Research in Motion Limited ( RIMM ) had the largest percent change down (-2.75%) while Facebook, Inc. ( FB ) had the largest percent change gain rising 2.55%.
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Hewlett-Packard Company ( HPQ ) had the largest percent change down (-2.3%) while Alcoa Inc. ( AA ) had the largest percent change gain rising .58%. On the NASDAQ Stock Exchange 16 stocks reached a 52 week high and 5 those reaching lows totaled. The most active, advancers, decliners, unusual volume and most active by dollar volume can be monitored intraday on the Most Active Stocks page.
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Hewlett-Packard Company ( HPQ ) had the largest percent change down (-2.3%) while Alcoa Inc. ( AA ) had the largest percent change gain rising .58%. There were 918 advancers and 1518 decliners for the day. The NASDAQ 100 index closed down -.25% for the day; a total of -6.62 points.
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1472.0
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2012-12-24 00:00:00 UTC
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Stocks Close Modestly Lower in Thin Pre-Holiday Trading
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https://www.nasdaq.com/articles/stocks-close-modestly-lower-thin-pre-holiday-trading-2012-12-24
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"There is virtually zero volume, nothing is happening, and everyone is on vacation," sighed Schaeffer's Senior Equity Analyst Bryan Sapp. In thin trading, the Dow Jones Industrial Average moved modestly lower, while the few investors still active expressed a hesitancy to buy ahead of the fiscal-cliff deadline one week from today. "There was also no big news over the weekend to make anything move," Sapp concluded.
Continue reading for more on today's market, including :
Bullish speculation in Citigroup ( C ) approached annual highs.
Facebook Inc ( FB ) got another vote of confidence from Wall Street.
Schaeffer's contributor Adam Warner shared some holiday-driven factors to watch for in the volatility space.
plus...
The latest in Italian politics, high hopes among short-term Google bulls, and our Tweet of the day, which is likely a popular mantra among insomniac traders.
The Dow Jones Industrial Average (DJIA) was sluggish throughout the day, spending the entire session wallowing below breakeven. By the closing bell, the blue-chip index showed a loss of 52 points, or 0.4%, and remained below its 10-day moving average. Four of the 30 Dow names enjoyed some positive momentum, however, with Alcoa ( AA ) leading the bullish quartet with a gain of 0.6%. Hewlett-Packard ( HPQ ) was at the back of the pack, down 2.3% on the day, and Pfizer ( PFE ) ended flat.
The S&P 500 Index (SPX) drifted lower as well, giving back 3.5 points, or 0.2%, making a close solidly south of its respective 10-day moving average. The Nasdaq Composite lost 8.4 points, or 0.3%.
The CBOE Market Volatility Index (VIX) , meanwhile, ended the day flat despite an intraday push higher.
3 Things to Know About Today's Market :
Politicians engaged in more of the blame game over the weekend via various media outlets, as policymakers headed off for the brief Christmas recess without a resolution to the $600 billion fiscal-cliff question. Senator Joseph Lieberman, I-Conn., appeared on CNN's "State of the Union" and called the potential drop off said cliff "the most colossal consequential act of congressional irresponsibility in a long time, maybe ever in American history." Senator John Barrasso, R-Wyo., told Fox News, "I think the president is eager to go over the cliff for political purposes." The two central figures in the budget debate -- President Obama and House Speaker John Boehner, R-Ohio -- kept quiet over the weekend.
Newly withdrawn Italian prime minister Mario Monti said he might consider a second term at the helm in the future, were he backed by fellow supporters of austerity measures (such as tax increases). Two days after his resignation, however, Monti remains understandably cynical, noting the decision to stay in politics at the current juncture would have assumed "a high probability of failure."
Microsoft Corporation (MSFT) dragged down the Dow following reports of disappointing sales for the new Windows 8 operating system. The news is also a likely letdown for PC manufacturers, which continue to face sluggish demand despite the introduction of a fresh (and largely well-reviewed) iteration of Windows.
Plus ... Robert Downey Jr. has come a long way from his troubled times. In fact -- according to Forbes -- he has cruised all the way to the top of the box-office-receipts game. Also near the top of this year's list for top-grossing performers were the trio of stars from the Twilight saga, Christian Bale, and Daniel Craig.
Today's Top Tweet :
"I'm not wrong, the market is."
@ReformedBroker, 7:11 a.m.
5 Stocks We Were Watching Today :
Bullish weekly option traders gambled on Google Inc (GOOG) , projecting a pop higher by the end of the week.
A far out-of-the-money call option saw unusual attention in Chesapeake Energy (CHK).
Longer-term put speculators pounced on VMware (VMW).
J.C. Penney (JCP) attracted call buyers as it moved higher following a positive analyst note.
AT&T (T) traders called for downside this week and snatched up weekly put options.
Question of the Day :
Q : What is the 'Santa-Claus Rally'?
A : This is a colloquial term related to the seasonal performance of stocks between Christmas and New Year's Day. Historically speaking (over the last 100 years), the Dow has been positive 68% of the time during Christmas week, with an average return of 0.67%. There are several theories behind this phenomenon, some of which include investors making portfolio changes ahead of the year-end tax deadline, or using Christmas bonus money to bolster their holdings.
For a look at today's options movers and commodities activity, head to page 2.
Commodities :
Oil futures had edged higher at press time, with the February contract up six cents at $88.72 per barrel. Gold futures, meanwhile, headed south against the backdrop of a rising dollar. In abbreviated trading, February-dated yellow metal settled down 60 cents at $1,659.50 an ounce.
At the end of every market day, the staff at Schaeffer's Investment Research reviews the trading day in detail, covering major events and key market developments. Don't miss this critical, timely and insightful report. If you enjoyed today's edition of Market Recap, sign up here for free daily delivery straight to your inbox.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Four of the 30 Dow names enjoyed some positive momentum, however, with Alcoa ( AA ) leading the bullish quartet with a gain of 0.6%. In thin trading, the Dow Jones Industrial Average moved modestly lower, while the few investors still active expressed a hesitancy to buy ahead of the fiscal-cliff deadline one week from today. 3 Things to Know About Today's Market : Politicians engaged in more of the blame game over the weekend via various media outlets, as policymakers headed off for the brief Christmas recess without a resolution to the $600 billion fiscal-cliff question.
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Four of the 30 Dow names enjoyed some positive momentum, however, with Alcoa ( AA ) leading the bullish quartet with a gain of 0.6%. In thin trading, the Dow Jones Industrial Average moved modestly lower, while the few investors still active expressed a hesitancy to buy ahead of the fiscal-cliff deadline one week from today. Continue reading for more on today's market, including : Bullish speculation in Citigroup ( C ) approached annual highs.
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Four of the 30 Dow names enjoyed some positive momentum, however, with Alcoa ( AA ) leading the bullish quartet with a gain of 0.6%. In thin trading, the Dow Jones Industrial Average moved modestly lower, while the few investors still active expressed a hesitancy to buy ahead of the fiscal-cliff deadline one week from today. @ReformedBroker, 7:11 a.m. 5 Stocks We Were Watching Today : Bullish weekly option traders gambled on Google Inc (GOOG) , projecting a pop higher by the end of the week.
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Four of the 30 Dow names enjoyed some positive momentum, however, with Alcoa ( AA ) leading the bullish quartet with a gain of 0.6%. In thin trading, the Dow Jones Industrial Average moved modestly lower, while the few investors still active expressed a hesitancy to buy ahead of the fiscal-cliff deadline one week from today. Today's Top Tweet : "I'm not wrong, the market is."
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1473.0
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2012-12-24 00:00:00 UTC
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Alcoa Signs Contract with Siemens - Analyst Blog
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https://www.nasdaq.com/articles/alcoa-signs-contract-with-siemens-analyst-blog-2012-12-24
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Alcoa Power and Propulsion, a business unit of aluminum giant Alcoa Inc. ( AA ), announced the signing of a long-term deal with Siemens Energy to supply blades and vanes for a wide range of industrial gas turbines. Specific terms of the contract were not revealed, but the company stated that production will be done at Alcoa Power and Propulsion operations in the US and Europe.
Siemens Energy, the energy division of Siemens AG ( SI ) is one of the world's leading suppliers of products, solutions and services in the energy technology field.
Alcoa said that the parts to be supplied to Siemens will be used for the production of its F-Class turbine, among other designs. Alcoa's blades and vanes operate in those sections of the turbine where temperatures sometimes exceed the melting point of the casting and the rotational rate exceeds the speed of sound. Alcoa's technology enables the optimal functioning of the castings, thus providing the customers with reliable electric supply.
Alcoa Power and Propulsion is a global leader in airfoil and structural investment castings and serves the aerospace, defense, energy and industrial markets. Alcoa Inc. is among the world's leading producers of primary and fabricated aluminum and alumina. Alcoa incurred a loss of $143 million or 13 cents for the third quarter of 2012, driven by a hefty charge associated with environmental remediation and legal settlement as well as lower aluminum pricing. It compared unfavorably with a profit of $172 million or 15 cents a share in the year-ago quarter.
Excluding one-time special items Alcoa earned $32 million or 3 cents a share in the quarter compared with the Zacks Consensus Estimate of a break even result.
Revenues decreased 9.1% year over year and 2.2% sequentially to $5,833 million, but were ahead of the Zacks Consensus Estimate of $5,565 million. The decline in revenues was attributable to a 17% year over year fall in aluminum prices.
Alcoa witnessed strong productivity growth in its upstream and downstream businesses in the quarter on the back of higher utilization rates, process innovations, lower scrap rates and usage reductions. The company saw healthy demand across the aerospace and automotive markets in the quarter.
The company has lowered its global aluminum demand forecast to 6% for 2012 from its earlier expectation of 7%, owing to the slowdown in China. The company, however, expects the aluminum market to double in 2020 from the 2010 level as the market is already ahead of the required compound annual growth rate of 6.5%.
The company competes with Aluminum Corporation of China Limited ( ACH ) and RioTinto plc. ( RIO ). It currently retains a Zacks #3 Rank, which translates into a short-term (1 to 3 months) Hold rating and we have a long-term (more than 6 months) Neutral recommendation on the stock.
ALCOA INC (AA): Free Stock Analysis Report
ALUMINUM CP-ADR (ACH): Free Stock Analysis Report
RIO TINTO-ADR (RIO): Free Stock Analysis Report
SIEMENS AG-ADR (SI): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alcoa Power and Propulsion, a business unit of aluminum giant Alcoa Inc. ( AA ), announced the signing of a long-term deal with Siemens Energy to supply blades and vanes for a wide range of industrial gas turbines. ALCOA INC (AA): Free Stock Analysis Report ALUMINUM CP-ADR (ACH): Free Stock Analysis Report RIO TINTO-ADR (RIO): Free Stock Analysis Report SIEMENS AG-ADR (SI): Free Stock Analysis Report To read this article on Zacks.com click here. Alcoa Power and Propulsion is a global leader in airfoil and structural investment castings and serves the aerospace, defense, energy and industrial markets.
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ALCOA INC (AA): Free Stock Analysis Report ALUMINUM CP-ADR (ACH): Free Stock Analysis Report RIO TINTO-ADR (RIO): Free Stock Analysis Report SIEMENS AG-ADR (SI): Free Stock Analysis Report To read this article on Zacks.com click here. Alcoa Power and Propulsion, a business unit of aluminum giant Alcoa Inc. ( AA ), announced the signing of a long-term deal with Siemens Energy to supply blades and vanes for a wide range of industrial gas turbines. Excluding one-time special items Alcoa earned $32 million or 3 cents a share in the quarter compared with the Zacks Consensus Estimate of a break even result.
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Alcoa Power and Propulsion, a business unit of aluminum giant Alcoa Inc. ( AA ), announced the signing of a long-term deal with Siemens Energy to supply blades and vanes for a wide range of industrial gas turbines. ALCOA INC (AA): Free Stock Analysis Report ALUMINUM CP-ADR (ACH): Free Stock Analysis Report RIO TINTO-ADR (RIO): Free Stock Analysis Report SIEMENS AG-ADR (SI): Free Stock Analysis Report To read this article on Zacks.com click here. Alcoa incurred a loss of $143 million or 13 cents for the third quarter of 2012, driven by a hefty charge associated with environmental remediation and legal settlement as well as lower aluminum pricing.
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Alcoa Power and Propulsion, a business unit of aluminum giant Alcoa Inc. ( AA ), announced the signing of a long-term deal with Siemens Energy to supply blades and vanes for a wide range of industrial gas turbines. ALCOA INC (AA): Free Stock Analysis Report ALUMINUM CP-ADR (ACH): Free Stock Analysis Report RIO TINTO-ADR (RIO): Free Stock Analysis Report SIEMENS AG-ADR (SI): Free Stock Analysis Report To read this article on Zacks.com click here. Siemens Energy, the energy division of Siemens AG ( SI ) is one of the world's leading suppliers of products, solutions and services in the energy technology field.
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1474.0
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2012-12-17 00:00:00 UTC
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Alcoa Opens Wheel Plant in China - Analyst Blog
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https://www.nasdaq.com/articles/alcoa-opens-wheel-plant-in-china-analyst-blog-2012-12-17
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Aluminum giant Alcoa Inc. ( AA ) announced that its business unit, Alcoa Wheel and Transportation, has opened a wheel manufacturing facility in Suzhou, China. The new opening is consistent with Alcoa's expansion strategy in China. The company currently has a full wheel manufacturing, distribution, sales and service network in the country.
The new plant is the first wheel-making facility for Alcoa in China. The company has similar facilities in North America, Japan and Europe. With this facility in place, China will benefit from Alcoa's industry-leading forged aluminum wheel technology that manufactures lighter, stronger and more fuel efficient commercial truck, trailer and bus wheels.
For setting up the facility in China, Alcoa received full support from the Suzhou Wuzhong Economic Development Zone and local governments that helped the company start operations at the facility before schedule. Alcoa started sales operations in Shanghai back in 2004, and has since expanded its sales network into Guangzhou, Beijing, Jinan and Suzhou.
Alcoa incurred a loss of $143 million or 13 cents for the third quarter of 2012, driven by a hefty charge associated with environmental remediation and legal settlement as well as lower aluminum pricing. It compared with a profit of $172 million or 15 cents a share in the year-ago quarter.
Excluding one-time special items (a $175 million charge mainly related to environmental remediation of the Grasse River and the settlement of a civil lawsuit with Aluminum Bahrain), Alcoa earned $32 million or 3 cents a share in the quarter compared with the Zacks Consensus Estimate of a break even result.
Revenues decreased 9.1% year over year and 2.2% sequentially to $5,833 million, but were ahead of the Zacks Consensus Estimate of $5,565 million. The decline in revenues was attributable to a 17% year over year fall in aluminum prices.
Alcoa witnessed strong productivity growth in its upstream and downstream businesses in the quarter on the back of higher utilization rates, process innovations, lower scrap rates and usage reductions. The company saw healthy demand across the aerospace and automotive markets in the quarter.
The company has lowered its global aluminum demand forecast to 6% for 2012 from its earlier expectation of 7%, owing to the slowdown in China. The company, however, expects the aluminum market to double in 2020 from the 2010 level as the market is already ahead of the required compound annual growth rate of 6.5%.
Pennsylvania-based Alcoa Inc. is among the world's leading producers of primary and fabricated aluminum and alumina. The company competes with Aluminum Corporation of China Limited ( ACH ) and RioTinto plc. ( RIO ). It currently retains a Zacks #3 Rank, which translates into a short-term (1 to 3 months) Hold rating and we have a long-term (more than 6 months) Neutral recommendation on the stock.
ALCOA INC (AA): Free Stock Analysis Report
ALUMINUM CP-ADR (ACH): Free Stock Analysis Report
RIO TINTO-ADR (RIO): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Aluminum giant Alcoa Inc. ( AA ) announced that its business unit, Alcoa Wheel and Transportation, has opened a wheel manufacturing facility in Suzhou, China. ALCOA INC (AA): Free Stock Analysis Report ALUMINUM CP-ADR (ACH): Free Stock Analysis Report RIO TINTO-ADR (RIO): Free Stock Analysis Report To read this article on Zacks.com click here. Alcoa incurred a loss of $143 million or 13 cents for the third quarter of 2012, driven by a hefty charge associated with environmental remediation and legal settlement as well as lower aluminum pricing.
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Aluminum giant Alcoa Inc. ( AA ) announced that its business unit, Alcoa Wheel and Transportation, has opened a wheel manufacturing facility in Suzhou, China. ALCOA INC (AA): Free Stock Analysis Report ALUMINUM CP-ADR (ACH): Free Stock Analysis Report RIO TINTO-ADR (RIO): Free Stock Analysis Report To read this article on Zacks.com click here. Excluding one-time special items (a $175 million charge mainly related to environmental remediation of the Grasse River and the settlement of a civil lawsuit with Aluminum Bahrain), Alcoa earned $32 million or 3 cents a share in the quarter compared with the Zacks Consensus Estimate of a break even result.
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Aluminum giant Alcoa Inc. ( AA ) announced that its business unit, Alcoa Wheel and Transportation, has opened a wheel manufacturing facility in Suzhou, China. ALCOA INC (AA): Free Stock Analysis Report ALUMINUM CP-ADR (ACH): Free Stock Analysis Report RIO TINTO-ADR (RIO): Free Stock Analysis Report To read this article on Zacks.com click here. Excluding one-time special items (a $175 million charge mainly related to environmental remediation of the Grasse River and the settlement of a civil lawsuit with Aluminum Bahrain), Alcoa earned $32 million or 3 cents a share in the quarter compared with the Zacks Consensus Estimate of a break even result.
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Aluminum giant Alcoa Inc. ( AA ) announced that its business unit, Alcoa Wheel and Transportation, has opened a wheel manufacturing facility in Suzhou, China. ALCOA INC (AA): Free Stock Analysis Report ALUMINUM CP-ADR (ACH): Free Stock Analysis Report RIO TINTO-ADR (RIO): Free Stock Analysis Report To read this article on Zacks.com click here. Revenues decreased 9.1% year over year and 2.2% sequentially to $5,833 million, but were ahead of the Zacks Consensus Estimate of $5,565 million.
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1475.0
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2012-12-17 00:00:00 UTC
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Fiscal Cliff Resolution for Christmas? - Analyst Blog
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https://www.nasdaq.com/articles/fiscal-cliff-resolution-christmas-analyst-blog-2012-12-17
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'Fiscal Cliff' negotiators have reportedly made meaningful progress over the weekend as the last full week of trading before the Christmas holidays get underway. While we are a bit light on the data front today, but the rest of this week brings a number of top-tier economic and earnings reports. But the focus will remain on the 'Fiscal Cliff' question.
Housing is a major component of this week's data, with Tuesday bringing the December homebuilder sentiment index, Wednesday the November Housing Starts numbers, and Existing Home sales data on Thursday. The expectation is for Housing Starts to pullback modestly from the prior month's level, while the homebuilder sentiment index is expected to be essentially unchanged from the month earlier level.
Other major reports this week include the November Personal Income & Outlays and Durable Goods reports on Friday and the final read on third quarter GDP on Thursday. Expectations for GDP growth in the fourth quarter have been steadily coming down in recent weeks and currently stand a little under 1.5%, with the growth pace not much better in the first quarter of 2013 either.
Expectations for the back half of 2013 are for much higher growth pace, though it's hard to envision how the momentum will shift. A Wall Street Journal report today quoting a Dow Jones Newswires survey shows major Wall Street firms expecting treasury bond yields to rise in 2013. Most prominent among these major brokerage firms are the 21 primary dealers, who underwrite treasury bond sales and deal directly with the Fed.
The median 10-year Treasury bond yield forecast for the primary dealers is for a roughly 50 basis point rise by the end of 2013 - from the roughly 1.71% as of Friday's close 2.25% by the end of the year. Yield on the same security was at 1.88% at the end of 2011.
This makes perfect sense, for two reasons. First, yields have been so low for so long that the only direction they should be moving going forward is - higher. Second, if anyone in the market has a good understanding of the Treasury bond market, it is most likely the firms that underwrite the securities - meaning the primary dealers.
The only problem is that the primary dealers had come out with similar forecasts in 2011 and 2010, but unfortunately things turned out differently. Maybe the third time is the charm. But it's not easy for anyone, even the primary dealers, to 'fight the Fed.' With the Fed committed to adding more than a $1 trillion worth of treasury and mortgage bonds to its balance sheet in 2013, it is perhaps reasonable to be skeptical of Wall Street's treasury yield forecast for 2013 as well.
These economic growth questions have a direct bearing on the corporate earnings outlook for 2013 as well. The fourth quarter earnings season gets underway this week with Oracle's ( ORCL ) quarterly report after the close on Tuesday, though we are still a few weeks away from the 'unofficial' start of the earnings cycle with Alcoa's ( AA ) release on January 8th. Other major reports this week include FedEx ( FDX ), Discover Financial ( DFS ) and Nike ( NKE ).
Earnings expectations for the fourth quarter have been steadily coming down over the last three months, with total earnings expected to be up 1.2% from the same period last year. This is a sharp drop from the roughly 7% earnings growth expected just three months ago. But even as expectations for the fourth quarter have come down, we haven't seen much downward adjustment to expectations for 2013, which still shows earnings growth rate of more than 10%.
The same thinking that is looking for the economy and Treasury yields to start rising in the second half of 2013 appear to also at play in looking for 10%-plus earnings growth. Maybe it's just me, but I find it hard to buy into these expectations.
ALCOA INC (AA): Free Stock Analysis Report
DISCOVER FIN SV (DFS): Free Stock Analysis Report
FEDEX CORP (FDX): Free Stock Analysis Report
NIKE INC-B (NKE): Free Stock Analysis Report
ORACLE CORP (ORCL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The fourth quarter earnings season gets underway this week with Oracle's ( ORCL ) quarterly report after the close on Tuesday, though we are still a few weeks away from the 'unofficial' start of the earnings cycle with Alcoa's ( AA ) release on January 8th. ALCOA INC (AA): Free Stock Analysis Report DISCOVER FIN SV (DFS): Free Stock Analysis Report FEDEX CORP (FDX): Free Stock Analysis Report NIKE INC-B (NKE): Free Stock Analysis Report ORACLE CORP (ORCL): Free Stock Analysis Report To read this article on Zacks.com click here. 'Fiscal Cliff' negotiators have reportedly made meaningful progress over the weekend as the last full week of trading before the Christmas holidays get underway.
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ALCOA INC (AA): Free Stock Analysis Report DISCOVER FIN SV (DFS): Free Stock Analysis Report FEDEX CORP (FDX): Free Stock Analysis Report NIKE INC-B (NKE): Free Stock Analysis Report ORACLE CORP (ORCL): Free Stock Analysis Report To read this article on Zacks.com click here. The fourth quarter earnings season gets underway this week with Oracle's ( ORCL ) quarterly report after the close on Tuesday, though we are still a few weeks away from the 'unofficial' start of the earnings cycle with Alcoa's ( AA ) release on January 8th. Housing is a major component of this week's data, with Tuesday bringing the December homebuilder sentiment index, Wednesday the November Housing Starts numbers, and Existing Home sales data on Thursday.
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The fourth quarter earnings season gets underway this week with Oracle's ( ORCL ) quarterly report after the close on Tuesday, though we are still a few weeks away from the 'unofficial' start of the earnings cycle with Alcoa's ( AA ) release on January 8th. ALCOA INC (AA): Free Stock Analysis Report DISCOVER FIN SV (DFS): Free Stock Analysis Report FEDEX CORP (FDX): Free Stock Analysis Report NIKE INC-B (NKE): Free Stock Analysis Report ORACLE CORP (ORCL): Free Stock Analysis Report To read this article on Zacks.com click here. A Wall Street Journal report today quoting a Dow Jones Newswires survey shows major Wall Street firms expecting treasury bond yields to rise in 2013.
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The fourth quarter earnings season gets underway this week with Oracle's ( ORCL ) quarterly report after the close on Tuesday, though we are still a few weeks away from the 'unofficial' start of the earnings cycle with Alcoa's ( AA ) release on January 8th. ALCOA INC (AA): Free Stock Analysis Report DISCOVER FIN SV (DFS): Free Stock Analysis Report FEDEX CORP (FDX): Free Stock Analysis Report NIKE INC-B (NKE): Free Stock Analysis Report ORACLE CORP (ORCL): Free Stock Analysis Report To read this article on Zacks.com click here. Expectations for the back half of 2013 are for much higher growth pace, though it's hard to envision how the momentum will shift.
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1476.0
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2012-12-17 00:00:00 UTC
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Ahead of Wall Street - December 17, 2012 - Ahead of Wall Street
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AA
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https://www.nasdaq.com/articles/ahead-wall-street-december-17-2012-ahead-wall-street-2012-12-17
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nan
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nan
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Monday, December 17, 2012
'Fiscal Cliff' negotiators have reportedly made meaningful progress over the weekend as the last full week of trading before the Christmas holidays get underway today. While we are a bit light on the data front today, but the rest of this week brings a number of top-tier economic and earnings reports. But the focus will remain on the 'Fiscal Cliff' question.
Housing is a major component of this week's data, with Tuesday bringing the December homebuilder sentiment index, Wednesday the November Housing Starts numbers, and Existing Home sales data on Thursday. The expectation is for Housing Starts to pullback modestly from the prior month's level, while the homebuilder sentiment index is expected to be essentially unchanged from the month earlier level. Other major reports this week include the November Personal Income & Outlays and Durable Goods reports on Friday and the final read on third quarter GDP on Thursday. Expectations for GDP growth in the fourth quarter have been steadily coming down in recent weeks and currently stand a little under 1.5%, with the growth pace not much better in the first quarter of 2013 either.
Expectations for the back half of 2013 are for much higher growth pace, though it's hard to envision how the momentum will shift. A Wall Street Journal report today quoting a Dow Jones Newswires survey shows major Wall Street firms expecting treasury bond yields to rise in 2013. Most prominent among these major brokerage firms are the 21 primary dealers, who underwrite treasury bond sales and deal directly with the Fed. The median 10-year Treasury bond yield forecast for the primary dealers is for a roughly 50 basis point rise by the end of 2013 - from the roughly 1.71% as of Friday's close 2.25% by the end of the year. Yield on the same security was at 1.88% at the end of 2011.
This makes perfect sense, for two reasons. First, yields have been so low for so long that the only direction they should be moving going forward is - higher. Second, if anyone in the market has a good understanding of the Treasury bond market, it is most likely the firms that underwrite the securities - meaning the primary dealers. The only problem is that the primary dealers had come out with similar forecasts in 2011 and 2010, but unfortunately things turned out differently. May be the third time is the charm. But it's not easy for anyone, even the primary dealers, to 'fight the Fed'. With the Fed committed to adding more than a $1 trillion worth of treasury and mortgage bonds to its balance sheet in 2013, it is perhaps reasonable to be skeptical of Wall Street's treasury yield forecast for 2013 as well.
These economic growth questions have a direct bearing on the corporate earnings outlook for 2013 as well. The fourth quarter earnings season gets underway this week with Oracle's ( ORCL ) quarterly report after the close on Tuesday, though we are still a few weeks away from the 'unofficial' start of the earnings cycle with Alcoa's ( AA ) release on January 8th. Other major reports this week include FedEx ( FDX ), Discover Financial ( DFS ), and Nike ( NKE ). Earnings expectations for the fourth quarter have been steadily coming down over the last three months, with total earnings expected to be up 1.2% from the same period last year. This is a sharp drop from the roughly 7% earnings growth expected just three months ago. But even as expectations for the fourth quarter have come down, we haven't seen much downward adjustment to expectations for 2013, which still shows earnings growth rate of more than 10%.
The same thinking that is looking for the economy and treasury yields to start rising in the second half of 2013 appear to also at play in looking for 10%-plus earnings growth. May be it's just me, but I find it hard to buy into these expectations.
Sheraz Mian
Director of Research
ALCOA INC (AA): Free Stock Analysis Report
DISCOVER FIN SV (DFS): Free Stock Analysis Report
FEDEX CORP (FDX): Free Stock Analysis Report
NIKE INC-B (NKE): Free Stock Analysis Report
ORACLE CORP (ORCL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The fourth quarter earnings season gets underway this week with Oracle's ( ORCL ) quarterly report after the close on Tuesday, though we are still a few weeks away from the 'unofficial' start of the earnings cycle with Alcoa's ( AA ) release on January 8th. Sheraz Mian Director of Research ALCOA INC (AA): Free Stock Analysis Report DISCOVER FIN SV (DFS): Free Stock Analysis Report FEDEX CORP (FDX): Free Stock Analysis Report NIKE INC-B (NKE): Free Stock Analysis Report ORACLE CORP (ORCL): Free Stock Analysis Report To read this article on Zacks.com click here. Monday, December 17, 2012 'Fiscal Cliff' negotiators have reportedly made meaningful progress over the weekend as the last full week of trading before the Christmas holidays get underway today.
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Sheraz Mian Director of Research ALCOA INC (AA): Free Stock Analysis Report DISCOVER FIN SV (DFS): Free Stock Analysis Report FEDEX CORP (FDX): Free Stock Analysis Report NIKE INC-B (NKE): Free Stock Analysis Report ORACLE CORP (ORCL): Free Stock Analysis Report To read this article on Zacks.com click here. The fourth quarter earnings season gets underway this week with Oracle's ( ORCL ) quarterly report after the close on Tuesday, though we are still a few weeks away from the 'unofficial' start of the earnings cycle with Alcoa's ( AA ) release on January 8th. Housing is a major component of this week's data, with Tuesday bringing the December homebuilder sentiment index, Wednesday the November Housing Starts numbers, and Existing Home sales data on Thursday.
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The fourth quarter earnings season gets underway this week with Oracle's ( ORCL ) quarterly report after the close on Tuesday, though we are still a few weeks away from the 'unofficial' start of the earnings cycle with Alcoa's ( AA ) release on January 8th. Sheraz Mian Director of Research ALCOA INC (AA): Free Stock Analysis Report DISCOVER FIN SV (DFS): Free Stock Analysis Report FEDEX CORP (FDX): Free Stock Analysis Report NIKE INC-B (NKE): Free Stock Analysis Report ORACLE CORP (ORCL): Free Stock Analysis Report To read this article on Zacks.com click here. A Wall Street Journal report today quoting a Dow Jones Newswires survey shows major Wall Street firms expecting treasury bond yields to rise in 2013.
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The fourth quarter earnings season gets underway this week with Oracle's ( ORCL ) quarterly report after the close on Tuesday, though we are still a few weeks away from the 'unofficial' start of the earnings cycle with Alcoa's ( AA ) release on January 8th. Sheraz Mian Director of Research ALCOA INC (AA): Free Stock Analysis Report DISCOVER FIN SV (DFS): Free Stock Analysis Report FEDEX CORP (FDX): Free Stock Analysis Report NIKE INC-B (NKE): Free Stock Analysis Report ORACLE CORP (ORCL): Free Stock Analysis Report To read this article on Zacks.com click here. The median 10-year Treasury bond yield forecast for the primary dealers is for a roughly 50 basis point rise by the end of 2013 - from the roughly 1.71% as of Friday's close 2.25% by the end of the year.
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1477.0
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2012-12-14 00:00:00 UTC
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Market Edges South for the Week as Fiscal Cliff Impasse Drags On
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AA
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https://www.nasdaq.com/articles/market-edges-south-week-fiscal-cliff-impasse-drags-2012-12-14
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nan
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nan
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"The market struggled below breakeven for most of the day and ended the session slightly in the red," summarized Schaeffer's Senior Equity Analyst Joe Bell. Despite a few fleeting trips into positive territory, the Dow Jones Industrial Average (DJI) closed with a modest loss and the S&P 500 Index (SPX) breached short-term trendline support.
Continue reading for more on today's market, including :
Why rising short interest could present a "pretty good time to be a buyer," according to Bell.
What is the Apple Inc. ( AAPL ) volatility index trying to tell us? Schaeffer's contributor Adam Warner explains.
Schaeffer's contributor Fred Ruffy stresses a bigger concern than the fiscal cliff .
plus...
How China helped commodities today, a brief look at five notable stocks, and our Tweet of the day -- a good peek into the mindset of a trader.
The bulls put up a worthy fight, actually pushing the Dow Jones Industrial Average (DJIA) into positive territory for a few short-lived excursions. Ultimately, however, the index settled with a loss of 35 points, or 0.3%. Of the 30 Dow stocks, 19 were in the red, with American Express ( AXP ) faring the worst with a 1.9% drop. Alcoa ( AA ), meanwhile, led the advancers with a gain of 1.8%, while General Electric ( GE ) was unchanged. For the week, the Dow slumped 0.2%.
The S&P 500 Index (SPX) lost ground as well, giving back six points, or 0.4%, on the day to fall south of its 10-day moving average. The Nasdaq Composite (COMP) brought up the rear once again, shedding 21 points, or 0.7%. The SPX lost 0.3% for the week, while the COMP surrendered 0.2%.
The CBOE Market Volatility Index (VIX) sprinted right up to the 17 mark today, gaining 0.4 point, or 2.7%. On a weekly basis, the index surged 7%.
A Trader's Take :
"This morning, there was better-than-expected economic data out of China, but this news from overseas failed to bolster most U.S. equities," Bell observed. "Elsewhere, Apple ( AAPL ) was dragging down the technology sector, as the stock's bounce off the $520 level was certainly short-lived." Bell also noted, "The [SPX] remained above 1,410, which has been previous support (and resistance) in the past. But overall, there really wasn't a whole lot to celebrate today, and the market was quite bland. As we near the holiday season," he continued, "the pending fiscal cliff remains on most investors' minds and will certainly grab more and more headlines with each passing day."
3 Things to Know About Today's Market :
The consumer price index (CPI) fell 0.3% last month, reported the Labor Department, as gasoline prices absorbed a rare plunge of 7.4%. The core CPI -- which excludes volatile food and energy costs -- edged up 0.1%, slightly below the expected rise of 0.2%. Elsewhere, industrial production accelerated 1.1% in November, according to the Federal Reserve, in part due to a Superstorm Sandy-related skew. Economists were looking for production to rise just 0.2%.
Commodities benefited from positive news out of China, as the nation's purchasing managers' index (PMI) edged up to 50.9 in December, hitting a 14-month high. Readings above 50 are indicative of expansion in the manufacturing sector. Earlier this week, Chinese officials reported a 14.9% increase in retail sales for November, which also hinted at improving conditions for the world's second-largest economy.
General Electric ( GE ) is boosting its quarterly dividend by 12% beginning in January, to 19 cents per share. The company is continuing to slowly rebuild from the dark days of early 2009, when GE's dividend was cut to 10 cents from 31 cents. The venerable conglomerate also said it will buy back another $10 billion in shares.
Plus ... Southwest Airlines ( LUV ) could be on the hook for $29 million in free drink credits. Plaintiffs filed a class-action lawsuit against the airline more than two years ago, arguing the carrier owed recompense for drink vouchers that expired on Aug. 1, 2010, following a shift in policy for Business Select fliers. The newly settled lawsuit estimates 5.8 million eligible vouchers (worth $5 each, hence $29 million) were not redeemed. In order to collect replacement vouchers (which will expire after one year), class members need only complete a form indicating the estimated number of unused vouchers they had.
Today's Top Tweet :
"Often my best trades are the ones I don't want to make ;-)"
@biggercapital, 9:08 a.m.
5 Stocks We Were Watching Today :
Spurred by concerns over iPhone production rates, UBS cut its price target on Apple Inc. ( AAPL ) by more than 10%.
Call buyers bet on short-term upside in Facebook (FB) shares.
Starbucks (SBUX) options bears think the stock has ample downside ahead over the next few months.
Bullish speculation continued in Zynga (ZNGA) , as the stock presses above previous resistance.
First Solar (FSLR) could be a winning trade idea for bullish contrarians.
Question of the Day :
Q : Where can I find out if weekly or quarterly options are offered on a particular security?
A : The list of available weekly and quarterly options is constantly changing, and is updated by the Chicago Board Options Exchange (CBOE). The list of available weeklies (for indexes, ETFs , and stocks) is here ; the list of available quarterlies is here .
For a look at today's options movers and commodities activity, head to page 2.
Commodities :
Oil futures ended the week up 0.9% after gaining 84 cents, or 1%, to settle at $86.73 per barrel in today's session. Gold futures also advanced, edging up 20 cents to $1,697 an ounce, but closed off 0.5% for the week.
At the end of every market day, the staff at Schaeffer's Investment Research reviews the trading day in detail, covering major events and key market developments. Don't miss this critical, timely and insightful report. If you enjoyed today's edition of Market Recap, sign up here for free daily delivery straight to your inbox.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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What is the Apple Inc. ( AAPL ) volatility index trying to tell us? Alcoa ( AA ), meanwhile, led the advancers with a gain of 1.8%, while General Electric ( GE ) was unchanged. "Elsewhere, Apple ( AAPL ) was dragging down the technology sector, as the stock's bounce off the $520 level was certainly short-lived."
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What is the Apple Inc. ( AAPL ) volatility index trying to tell us? Alcoa ( AA ), meanwhile, led the advancers with a gain of 1.8%, while General Electric ( GE ) was unchanged. "Elsewhere, Apple ( AAPL ) was dragging down the technology sector, as the stock's bounce off the $520 level was certainly short-lived."
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Today's Top Tweet : "Often my best trades are the ones I don't want to make ;-)" @biggercapital, 9:08 a.m. 5 Stocks We Were Watching Today : Spurred by concerns over iPhone production rates, UBS cut its price target on Apple Inc. ( AAPL ) by more than 10%. What is the Apple Inc. ( AAPL ) volatility index trying to tell us? Alcoa ( AA ), meanwhile, led the advancers with a gain of 1.8%, while General Electric ( GE ) was unchanged.
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Today's Top Tweet : "Often my best trades are the ones I don't want to make ;-)" @biggercapital, 9:08 a.m. 5 Stocks We Were Watching Today : Spurred by concerns over iPhone production rates, UBS cut its price target on Apple Inc. ( AAPL ) by more than 10%. What is the Apple Inc. ( AAPL ) volatility index trying to tell us? Alcoa ( AA ), meanwhile, led the advancers with a gain of 1.8%, while General Electric ( GE ) was unchanged.
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1478.0
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2012-12-14 00:00:00 UTC
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Alcoa- Ma'aden Reaches Milestone - Analyst Blog
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AA
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https://www.nasdaq.com/articles/alcoa-maaden-reaches-milestone-analyst-blog-2012-12-14
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nan
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nan
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The joint venture between Aluminum giant Alcoa Inc. ( AA ) and the Saudi Arabian Mining Company Ma'aden announced the achievments of the First Hot Metal milestone, with the commissioning of the first of 720 smelting furnaces at its Ras Al Khair facility in Saudi Arabia. The facility will start commercial production in the near future.
The First Hot Metal was achieved within 29 months of the start of construction. Natural resources, human resources, and government support led to the success of the joint venture. The expertise of Ma'aden and its regional strength as well as the global presence of Alcoa were mainly responsible for the success of the project.
The smelting system operated by Alcoa and Ma'aden joint venture will be the lowest-cost producer among other smelting systems of Alcoa around the world. It will help Saudi Arabia become the regional leader in the global aluminum industry.
Alcoa entered into a joint venture with Ma'aden to develop the largest and lowest-cost integrated aluminum facility in the highly populated Middle East region, where infrastructures are provided to keep pace with growing consumer demand. The project leverages efficiencies from integrating the mine, refinery, smelter, and rolling mill, and from low energy costs embedded in a brand new infrastructure environment.
Alcoa reported a loss of $143 million or 13 cents per share for the third quarter of 2012, driven by a hefty charge associated with environmental remediation and legal settlement as well as lower aluminum pricing. It compared with a profit of $172 million or 15 cents in the year-ago quarter.
Excluding one-time special items (a $175 million charge mainly related to environmental remediation of the Grasse River and the settlement of a civil lawsuit with Aluminum Bahrain), Alcoa earned $32 million or 3 cents a share in the quarter compared with the Zacks Consensus Estimate of a break even result.
Revenues decreased 9.1% year over year and 2.2% sequentially to $5,833 million, but were ahead of the Zacks Consensus Estimate of $5,565 million. Alcoa stated that aluminum prices dropped 17% year over year and 5% sequentially in the third quarter.
Alcoa witnessed strong productivity growth in its upstream and downstream businesses in the quarter on the back of higher utilization rates, process innovations, lower scrap rates and usage reductions. The company saw healthy demand across the aerospace and automotive markets in the quarter.
The company has lowered its 2012 forecast for global aluminum consumption to 6% from its earlier projection of 7%, owing to the slowdown in China. However, the company, expects the aluminum market to double in 2020 from the 2010 level as it is already ahead of the required compound annual growth rate of 6.5%.
Pennsylvania-based Alcoa Inc. is among the world's leading producers of primary and fabricated aluminum and alumina. The company competes with Aluminum Corporation of China Limited ( ACH ) and RioTinto plc. ( RIO ). It currently retains a Zacks #3 Rank, which translates into a short-term (1 to 3 months) Hold rating and we have a long-term (more than 6 months) Neutral recommendation on the shares of Alcoa.
ALCOA INC (AA): Free Stock Analysis Report
ALUMINUM CP-ADR (ACH): Free Stock Analysis Report
RIO TINTO-ADR (RIO): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The joint venture between Aluminum giant Alcoa Inc. ( AA ) and the Saudi Arabian Mining Company Ma'aden announced the achievments of the First Hot Metal milestone, with the commissioning of the first of 720 smelting furnaces at its Ras Al Khair facility in Saudi Arabia. ALCOA INC (AA): Free Stock Analysis Report ALUMINUM CP-ADR (ACH): Free Stock Analysis Report RIO TINTO-ADR (RIO): Free Stock Analysis Report To read this article on Zacks.com click here. Alcoa entered into a joint venture with Ma'aden to develop the largest and lowest-cost integrated aluminum facility in the highly populated Middle East region, where infrastructures are provided to keep pace with growing consumer demand.
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The joint venture between Aluminum giant Alcoa Inc. ( AA ) and the Saudi Arabian Mining Company Ma'aden announced the achievments of the First Hot Metal milestone, with the commissioning of the first of 720 smelting furnaces at its Ras Al Khair facility in Saudi Arabia. ALCOA INC (AA): Free Stock Analysis Report ALUMINUM CP-ADR (ACH): Free Stock Analysis Report RIO TINTO-ADR (RIO): Free Stock Analysis Report To read this article on Zacks.com click here. The smelting system operated by Alcoa and Ma'aden joint venture will be the lowest-cost producer among other smelting systems of Alcoa around the world.
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The joint venture between Aluminum giant Alcoa Inc. ( AA ) and the Saudi Arabian Mining Company Ma'aden announced the achievments of the First Hot Metal milestone, with the commissioning of the first of 720 smelting furnaces at its Ras Al Khair facility in Saudi Arabia. ALCOA INC (AA): Free Stock Analysis Report ALUMINUM CP-ADR (ACH): Free Stock Analysis Report RIO TINTO-ADR (RIO): Free Stock Analysis Report To read this article on Zacks.com click here. Excluding one-time special items (a $175 million charge mainly related to environmental remediation of the Grasse River and the settlement of a civil lawsuit with Aluminum Bahrain), Alcoa earned $32 million or 3 cents a share in the quarter compared with the Zacks Consensus Estimate of a break even result.
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The joint venture between Aluminum giant Alcoa Inc. ( AA ) and the Saudi Arabian Mining Company Ma'aden announced the achievments of the First Hot Metal milestone, with the commissioning of the first of 720 smelting furnaces at its Ras Al Khair facility in Saudi Arabia. ALCOA INC (AA): Free Stock Analysis Report ALUMINUM CP-ADR (ACH): Free Stock Analysis Report RIO TINTO-ADR (RIO): Free Stock Analysis Report To read this article on Zacks.com click here. The First Hot Metal was achieved within 29 months of the start of construction.
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1479.0
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2012-12-11 00:00:00 UTC
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Alcoa Signs Contract with BPA - Analyst Blog
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AA
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https://www.nasdaq.com/articles/alcoa-signs-contract-with-bpa-analyst-blog-2012-12-11
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nan
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nan
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Alcoa Inc. ( AA ) announced that it has entered into a contract with Bonneville Power Administration (BPA) for its Intalco Works aluminum smelter in Ferndale, Washington. Under the 10-year contract, BPA will provide 300 mega watt (Mw) of power to Intalco at the Industrial Power rate.
The signing of the new contract will be beneficial for the BPA customers as they will enjoy lower rates in the near term as well as stability of rates in the future. The agreement will also ensure operational flexibility and will help in dealing with intermittent resources like wind.
On the other hand, the contract will also benefit Alcoa as it will create new employment opportunities for people in the Washington area. The contract also paves the way for significant investments at Alcoa's Ferndale plant.
Intalco Works started operations in 1966 and has capacity of 279,000 metric tons per year. The plant employs around 640 people.
Alcoa reported a loss of $143 million or 13 cents for the third quarter of 2012, driven by a hefty charge associated with environmental remediation and legal settlement as well as lower aluminum pricing. It compared with a profit of $172 million or 15 cents a share in the year-ago quarter.
Excluding one-time special items (a $175 million charge mainly related to environmental remediation of the Grasse River and the settlement of a civil lawsuit with Aluminum Bahrain), Alcoa earned $32 million or 3 cents a share in the quarter compared with the Zacks Consensus Estimate of a break even result. The company incurred a $40 million charge associated with the legal settlement in the quarter.
Revenues decreased 9.1% year over year and 2.2% sequentially to $5,833 million, but were ahead of the Zacks Consensus Estimate of $5,565 million. According to Alcoa, aluminum prices dropped 17% year over year and 5% sequentially in the third quarter.
Alcoa witnessed strong productivity growth in its upstream and downstream businesses in the quarter on the back of higher utilization rates, process innovations, lower scrap rates and usage reductions. The company saw healthy demand across the aerospace and automotive markets in the quarter.
The company has lowered its global aluminum demand forecast for 2012 to 6% from its earlier expectation of 7%, owing to the slowdown in China. The company, however, expects the aluminum market to double in 2020 from the 2010 level as the market is already ahead of the required 6.5% compound annual growth rate.
Pennsylvania-based Alcoa Inc. is among the world's leading producers of primary and fabricated aluminum and alumina. The company competes with Aluminum Corporation of China Limited ( ACH ) and RioTinto plc . ( RIO ). It currently retains a Zacks #3 Rank, which translates into a short-term (1 to 3 months) Hold rating and we have a long-term (more than 6 months) Neutral recommendation on the stock.
ALCOA INC (AA): Free Stock Analysis Report
ALUMINUM CP-ADR (ACH): Free Stock Analysis Report
RIO TINTO-ADR (RIO): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alcoa Inc. ( AA ) announced that it has entered into a contract with Bonneville Power Administration (BPA) for its Intalco Works aluminum smelter in Ferndale, Washington. ALCOA INC (AA): Free Stock Analysis Report ALUMINUM CP-ADR (ACH): Free Stock Analysis Report RIO TINTO-ADR (RIO): Free Stock Analysis Report To read this article on Zacks.com click here. Alcoa reported a loss of $143 million or 13 cents for the third quarter of 2012, driven by a hefty charge associated with environmental remediation and legal settlement as well as lower aluminum pricing.
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ALCOA INC (AA): Free Stock Analysis Report ALUMINUM CP-ADR (ACH): Free Stock Analysis Report RIO TINTO-ADR (RIO): Free Stock Analysis Report To read this article on Zacks.com click here. Alcoa Inc. ( AA ) announced that it has entered into a contract with Bonneville Power Administration (BPA) for its Intalco Works aluminum smelter in Ferndale, Washington. Excluding one-time special items (a $175 million charge mainly related to environmental remediation of the Grasse River and the settlement of a civil lawsuit with Aluminum Bahrain), Alcoa earned $32 million or 3 cents a share in the quarter compared with the Zacks Consensus Estimate of a break even result.
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ALCOA INC (AA): Free Stock Analysis Report ALUMINUM CP-ADR (ACH): Free Stock Analysis Report RIO TINTO-ADR (RIO): Free Stock Analysis Report To read this article on Zacks.com click here. Alcoa Inc. ( AA ) announced that it has entered into a contract with Bonneville Power Administration (BPA) for its Intalco Works aluminum smelter in Ferndale, Washington. Alcoa reported a loss of $143 million or 13 cents for the third quarter of 2012, driven by a hefty charge associated with environmental remediation and legal settlement as well as lower aluminum pricing.
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Alcoa Inc. ( AA ) announced that it has entered into a contract with Bonneville Power Administration (BPA) for its Intalco Works aluminum smelter in Ferndale, Washington. ALCOA INC (AA): Free Stock Analysis Report ALUMINUM CP-ADR (ACH): Free Stock Analysis Report RIO TINTO-ADR (RIO): Free Stock Analysis Report To read this article on Zacks.com click here. Alcoa reported a loss of $143 million or 13 cents for the third quarter of 2012, driven by a hefty charge associated with environmental remediation and legal settlement as well as lower aluminum pricing.
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1480.0
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2012-12-09 00:00:00 UTC
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Dow Pariahs for 2013
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AA
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https://www.nasdaq.com/articles/dow-pariahs-2013-2012-12-09
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nan
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nan
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There is something to be said for being greedy when others are fearful and investing when there is blood in the streets. Over the course of time, contrarian thinking has, in many instances, paid off handsomely for those with the required audacity and temerity.
The Dogs of the Dow Theory is somewhat contrarian in its approach as it advocates investors embracing the blue chip index's 10 highest-yielding names at the start of the new year. The premise is that dividend payers do not their payouts based on trading environment and that the high yields are a sign of a bottom in these shares.
What about the Pariahs of the Dow? Meaning the index's worst performers. Bank of America (NYSE: BAC ) was the Dow's worst performer in 2011. This year, the stock has nearly doubled. Keeping in mind that there are no guarantees that the Bank of America scenario will repeat itself every with the Dow's worst laggard, the following stocks are among the Dow's worst performers in 2012.
Please note that according to Finviz data , just six of the Dow 30 are down on the year as of December 7. Those not included in this piece are Alcoa (NYSE: AA ), DuPont (NYSE: DD ) and Intel (NASDAQ: INTC ).
Hewlett-Packard (NYSE: HPQ ) Hewlett-Packard is this year's Dow version of Bank of America as the personal computer giant is sitting on a loss of more than 45 percent. Indeed, it would require a heavy contarian outlook to embrace HP, though there is a case for doing so .
However, even the best contarians do not become so just for the sake of betting against the herd. And there is no way an accomplished can become accomplished by overlooking the obvious. In HP's case, there are myriad, obvious hurdles the company must overcome to even come close to restoring its lost glory.
There is ample speculation that 2012 represents the death of the PC. Investors are clamoring for HP to break itself up to unlock some shareholder value. Then there is the looming $8.8 billion Autonomy acquisition write down that arguably means HP should consider cutting its dividend .
All of this is not to say HP shares will not surge next year. It does mean, however, that investors that embrace this stock are the ultimate contrarians.
Caterpillar (NYSE: CAT ) The world's largest maker of construction and mining equipment is not sitting on a bad year-to-date loss, but if the fiscal cliff comes to pass, it will be hard to jump on Caterpillar's train if the U.S. is mired in another recession.
Then there is looming concern among U.S. companies that derive significant portions of their revenue from China about the impact of the rift between the two countries over audit documents . Basically, Chinese regulators are refusing to give their U.S. counterparts access to audit records for nine U.S.-listed Chinese firms, according to Reuters.
This could have a potentially adverse impact on U.S.-based companies that do a lot of business in China, of which Caterpillar is one. Wait-and-see might be the best approach with this stock next year.
McDonald's (NYSE: MCD ) One of the Dow's 2011 juggernauts has turned into the one of 2012's laggards as shares of the world's largest fast-food chain are off nearly 12 percent. However, the allure with McDonald's is clear, particularly for conservative investors.
For starters, the stock has a beta of just 0.4 against the S&P 500. Second, the company has raised its dividend for 35 consecutive years. Over the past decade, McDonald's has grown free cash flow at a compound annual growth rate of 17.43% . Through the end of 2011, McDonald's free cash flow per share had nearly doubled since 2006.
With a return equity of 40 percent, return on assets of almost 16.5 percent and a dividend yield of nearly 3.5 percent, McDonald's looks like the best-positioned of the three stocks highlighted here to flourish next year.
(c) 2012 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Those not included in this piece are Alcoa (NYSE: AA ), DuPont (NYSE: DD ) and Intel (NASDAQ: INTC ). The Dogs of the Dow Theory is somewhat contrarian in its approach as it advocates investors embracing the blue chip index's 10 highest-yielding names at the start of the new year. Then there is looming concern among U.S. companies that derive significant portions of their revenue from China about the impact of the rift between the two countries over audit documents .
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Those not included in this piece are Alcoa (NYSE: AA ), DuPont (NYSE: DD ) and Intel (NASDAQ: INTC ). Keeping in mind that there are no guarantees that the Bank of America scenario will repeat itself every with the Dow's worst laggard, the following stocks are among the Dow's worst performers in 2012. Through the end of 2011, McDonald's free cash flow per share had nearly doubled since 2006.
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Those not included in this piece are Alcoa (NYSE: AA ), DuPont (NYSE: DD ) and Intel (NASDAQ: INTC ). Keeping in mind that there are no guarantees that the Bank of America scenario will repeat itself every with the Dow's worst laggard, the following stocks are among the Dow's worst performers in 2012. Hewlett-Packard (NYSE: HPQ ) Hewlett-Packard is this year's Dow version of Bank of America as the personal computer giant is sitting on a loss of more than 45 percent.
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Those not included in this piece are Alcoa (NYSE: AA ), DuPont (NYSE: DD ) and Intel (NASDAQ: INTC ). This year, the stock has nearly doubled. Indeed, it would require a heavy contarian outlook to embrace HP, though there is a case for doing so .
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1481.0
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2012-12-06 00:00:00 UTC
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Dow Settles at One-Month High Ahead of Closely Watched Payrolls Report
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The Dow Jones Industrial Average (DJI) spent most of the session dawdling north of breakeven, as Wall Street applauded a tech-sector rebound and encouraging data ahead of tomorrow's highly anticipated nonfarm payrolls report. Nevertheless, the bulls remained somewhat cautious amid the ongoing fiscal-cliff standoff, as well as the European Central Bank's (ECB) downwardly revised economic forecast for 2013.
Continue reading for more on today's market events, including :
Daily Game Plan : Which level could hold a clue for stocks' end-of-year trajectory? Senior Trading Analyst Bryan Sapp weighs in.
Chart of the Day : Senior Options Strategist Tony Venosa, CMT, outlines the next upside target for this java giant .
In Focus : Wall Street is betting on a pop in market volatility , notes Senior VP of Research Todd Salamone.
and...
Everything You Need to Know : Your one-stop shop for levels to watch, economic data, earnings reports, stocks on the move, and commodities action.
The Dow Jones Industrial Average (DJIA) ended just off its session high, tacking on almost 40 points, or 0.3%, to settle at its loftiest level since Nov. 6. Just nine of the Dow's 30 blue chips bucked the trend, with Alcoa ( AA ) ending flat and AT&T ( T ) giving up 0.8%. On the other hand, Intel ( INTC ) led the 21 advancing big-caps, adding 1.6%.
The S&P 500 Index (SPX) also finished near an intraday acme, gaining 4.7 points, or 0.3%. Meanwhile, the tech-rich Nasdaq Composite (COMP) fared the best of its peers, gaining 15.6 points, or 0.5%. However, the COMP's upward momentum stalled in the round-number 3,000 region.
The CBOE Market Volatility Index (VIX) also settled in the black, adding about 0.7%, and bringing its week-to-date gain to roughly 4.5%.
A Trader's Take
"Markets were relatively flat today, as financial stocks gave back some of their gains from yesterday and Apple ( AAPL ) finally had a positive day after a rough stretch this week," said Senior Equity Analyst Joe Bell. "While AAPL finally showed a glimmer of hope, only time will tell if the bounce lasts. But after a tough string of losses, investors were sure glad it finally caught a bid near its November low."
What's more, said Bell, Wall Street seemed to shrug off lackluster headlines from overseas. "News from Europe didn't help, as Standard & Poor's downgraded Greece to 'Select Default' from 'CCC.' This is just the latest in a string of meaningless downgrades from Standard & Poor's, and did little to shake the market."
Economic and Earnings News :
Initial jobless claims fell by 25,000 last week to a seasonally adjusted 370,000, reported the Labor Department, down from the previous week's upwardly revised 395,000. The drop was healthier than expected, as economists expected 375,000 claims for the latest week. The four-week moving average of first-time jobless claims edged up by 2,250 to 408,000.
Planned job cuts jumped 34% in November on a year-over-year basis, according to Challenger, Gray & Christmas, arriving at 57,081 -- making it the second-worst month for layoffs in 2012, behind only May's 61,887 cuts. However, were it not for the 18,500 pink slips doled out by Hostess last month, planned job cuts would have actually declined from November 2011 levels.
The mood brightened on Wall Street during the week ended Dec. 5, according to the latest survey by the American Association of Individual Investors (AAII). The percentage of respondents with a bullish view on stocks climbed to 42.2% from 40.9%, even as the percentage bearish inched up to 34.6% from 34.4%. Meanwhile, the percentage neutral retreated to 23.2% from 24.7%.
More Stocks Making News :
Zynga ( ZNGA ) applied for a gaming license in Nevada.
Starbucks (SBUX) unveiled a new expansion strategy .
Walt Disney (DIS) scored a price-target hike ahead of the bell.
Freeport-McMoRan Copper & Gold (FCX) was bombarded by bearish brokerage notes.
Imperial Capital initiated coverage on Crocs (CROX) with an "outperform" endorsement .
Beleaguered Baidu (BIDU) fell to another new low.
Broadcom (BRCM) waxed optimistic on its fourth-quarter sales goals.
For today's activity in commodities, options, and more, head to page 2.
In the Options Pits :
Apple ( AAPL ) attracted short-term option bulls.
Front-month puts were popular on Facebook (FB) .
Juniper Networks (JNPR) was targeted for an optimistic spread strategy .
Short sellers might be buying options insurance on rebounding Peabody Energy (BTU).
Likewise, Advanced Micro Devices (AMD) could also be making the shorts nervous.
VMware (VMW) saw a relatively rare pop in put activity .
Traders are targeting more short-term upside for Bank of America (BAC) .
Commodities
Oil futures extended their losing streak into a third consecutive session, pressured by Wednesday's bearish U.S. inventories report and a gloomy economic forecast out of the euro zone. Crude for January delivery dropped $1.62, or 1.8%, to finish at $86.26 per barrel.
Gold futures ended the day on positive ground, as a revived safe-haven bid overshadowed a stronger U.S. dollar. February-dated gold gained $8, or 0.5%, to finish at $1,701.80 per ounce.
At the end of every market day, the staff at Schaeffer's Investment Research reviews the trading day in detail, covering major events and key market developments. Don't miss this critical, timely and insightful report. If you enjoyed today's edition of Market Recap, sign up here for free daily delivery straight to your inbox.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A Trader's Take "Markets were relatively flat today, as financial stocks gave back some of their gains from yesterday and Apple ( AAPL ) finally had a positive day after a rough stretch this week," said Senior Equity Analyst Joe Bell. Just nine of the Dow's 30 blue chips bucked the trend, with Alcoa ( AA ) ending flat and AT&T ( T ) giving up 0.8%. "While AAPL finally showed a glimmer of hope, only time will tell if the bounce lasts.
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A Trader's Take "Markets were relatively flat today, as financial stocks gave back some of their gains from yesterday and Apple ( AAPL ) finally had a positive day after a rough stretch this week," said Senior Equity Analyst Joe Bell. Just nine of the Dow's 30 blue chips bucked the trend, with Alcoa ( AA ) ending flat and AT&T ( T ) giving up 0.8%. "While AAPL finally showed a glimmer of hope, only time will tell if the bounce lasts.
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A Trader's Take "Markets were relatively flat today, as financial stocks gave back some of their gains from yesterday and Apple ( AAPL ) finally had a positive day after a rough stretch this week," said Senior Equity Analyst Joe Bell. Just nine of the Dow's 30 blue chips bucked the trend, with Alcoa ( AA ) ending flat and AT&T ( T ) giving up 0.8%. "While AAPL finally showed a glimmer of hope, only time will tell if the bounce lasts.
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A Trader's Take "Markets were relatively flat today, as financial stocks gave back some of their gains from yesterday and Apple ( AAPL ) finally had a positive day after a rough stretch this week," said Senior Equity Analyst Joe Bell. In the Options Pits : Apple ( AAPL ) attracted short-term option bulls. Just nine of the Dow's 30 blue chips bucked the trend, with Alcoa ( AA ) ending flat and AT&T ( T ) giving up 0.8%.
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1482.0
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2012-12-03 00:00:00 UTC
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Avoid These Single-Digit Stocks in 2013
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A common misconception among investors is that a stock's price tag indicates its true value. For example, some investors may believe that Apple (NASDAQ: AAPL ) is expensive because it trades for over $586 a share. That logic ignores the fact that Apple trades at just 10 times next year's earnings, which is in fact inexpensive relative to many technology names.
On the other hand, some investors may view Pandora (NYSE: P ) as cheap simply because it trades below $9 per share. That view comes despite the fact that the shares trade for almost 125 times next year's estimated earnings.
Rather, Apple and Pandora should tell investors that stocks can be "cheap" even when shares have high price tags, and pricey even when individual shares carry low price tags. The latter scenario underscores the wisdom of not being lured into a stock simply because of the superficial metric of market price. With that in mind, investors would do well to avoid or short the following single-digit names next year:
LDK Solar (NYSE: LDK ) A stock that trades for less than $2 and has surged more than 27 percent in the past week can be seductive, but keep in mind this is a solar stock that fell more than 10 percent on Monday. China-based LDK on Monday slashed its full-year revenue forecast to $950 million-$1 billion from $1-$1.5 billion. The company also said it expects fourth-quarter revenue of $230-$290 million, which is well below the consensus estimate of $552.35 million.
Forget $2, the shares closed barely above $1 on Monday and the average price target is just $1.16, implying little upside from current levels. LDK could easily trade for 50 cents or less before its sees $1.80 again.
Century Aluminum (NASDAQ: CENX ) Practically every aluminum stock has been taken to the woodshed this year due to falling prices of the commodity. In turn, lower prices result in slack revenue and profits for aluminum producers and that theme has permeated this space. Century Aluminum is a small-cap stock that trades at almost 41 times 2013's estimated earnings. On the other hand, investors can pay just a few pennies more and get Dow component Alcoa (NYSE: AA ) at just 12.4 times next year's earnings.
Caesars Entertainment (NASDAQ: CZR ) On volume that was better than double the daily average, shares of Caesars Entertainment surged almost 10 percent on Monday, but that does little to eat away at a loss of roughly 56 percent since the company's February IPO.
The reason for the recent bullishness in this downtrodden name is easily spotted, though highly flawed. Investors appear to betting, no pun intended, that Caesars will join the special dividend craze and follow rivals Las Vegas Sands (NYSE: LVS ) and Wynn Resports (NASDAQ: WYNN ) in issuing special payouts.
However, that would be foolish, as Caesars' balance sheet is less than fortress-like. It is the balance sheet that explains why this is a single-digit stock that is not a good value. Caesars has $20 billion in junk-rated debt and has to pay $1.5 billion a year in interest on that debt.
Paying $1.5 billion in interest annually means that until Caesars can boost its credit rating, an unlikely scenario in the near- to medium-term, the company is devoting almost double its current market cap to interest expenses. That is not an attractive proposition for investors. Nor is the fact that earlier this year Fitch Ratings said Caesars could find its way to bankruptcy court in the future.
(c) 2012 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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On the other hand, investors can pay just a few pennies more and get Dow component Alcoa (NYSE: AA ) at just 12.4 times next year's earnings. For example, some investors may believe that Apple (NASDAQ: AAPL ) is expensive because it trades for over $586 a share. Forget $2, the shares closed barely above $1 on Monday and the average price target is just $1.16, implying little upside from current levels.
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For example, some investors may believe that Apple (NASDAQ: AAPL ) is expensive because it trades for over $586 a share. On the other hand, investors can pay just a few pennies more and get Dow component Alcoa (NYSE: AA ) at just 12.4 times next year's earnings. On the other hand, some investors may view Pandora (NYSE: P ) as cheap simply because it trades below $9 per share.
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For example, some investors may believe that Apple (NASDAQ: AAPL ) is expensive because it trades for over $586 a share. On the other hand, investors can pay just a few pennies more and get Dow component Alcoa (NYSE: AA ) at just 12.4 times next year's earnings. Rather, Apple and Pandora should tell investors that stocks can be "cheap" even when shares have high price tags, and pricey even when individual shares carry low price tags.
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For example, some investors may believe that Apple (NASDAQ: AAPL ) is expensive because it trades for over $586 a share. On the other hand, investors can pay just a few pennies more and get Dow component Alcoa (NYSE: AA ) at just 12.4 times next year's earnings. On the other hand, some investors may view Pandora (NYSE: P ) as cheap simply because it trades below $9 per share.
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1483.0
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2012-12-03 00:00:00 UTC
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Fiscal-Cliff Fears, Factory Data Pressure Stocks Lower
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https://www.nasdaq.com/articles/fiscal-cliff-fears-factory-data-pressure-stocks-lower-2012-12-03
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It was another back-and-forth session for the Dow Jones Industrial Average (DJI) , though the bears eventually prevailed. Stocks erased early gains on signs of contracting U.S. manufacturing activity, and House Republicans' budget proposal failed to spark optimism about bipartisan deal-making. With the clock ticking, the looming fiscal cliff remained in focus, and the major indexes ended just off session lows.
Continue reading for more on today's market events, including :
Daily Game Plan : Senior Trading Analyst Bryan Sapp explains why you should play this zone in the short term .
Chart of the Day : Senior Options Strategist Tony Venosa, CMT, is watching this banking bigwig and its dance with a key trendline.
In Focus : With just a month left before we head over the fiscal cliff, here's your contrarian guide to a December to remember .
and...
Everything You Need to Know : Your one-stop shop for levels to watch, economic data, earnings reports, stocks on the move, and commodities action.
The Dow Jones Industrial Average (DJIA) started off strong, but blazed a path lower as the session progressed. By the close, the blue-chip barometer shed nearly 60 points, or 0.5%, ending its two-day streak atop the 13,000 level. Just eight of the Dow's 30 components avoided the red, with Cisco Systems' ( CSCO ) 0.6% gain leading the seven advancers, and Alcoa ( AA ) finishing flat. Meanwhile, DuPont ( DD ) paced the bearish majority with a 1.7% drop.
The S&P 500 Index (SPX) also turned tail in the first hour of trading, surrendering 6.7 points, or 0.5%, by the close. Likewise, the Nasdaq Composite (COMP) ended near a session low, giving up 8 points, or 0.3%, but maintaining its perch atop the 3,000 level.
The CBOE Market Volatility Index (VIX) , on the other hand, added 4.8% to end north of 16 for the first time since Nov. 16.
A Trader's Take
"The Institute for Supply Management's (ISM) sub-50 manufacturing number came out at 10:00 AM, and that sparked the selling," said Sapp. "Before that the market was up about 0.4%, but we eventually reversed course to finish 0.5% lower. However, even though the market is weak, there are pockets of strength -- you can still pick stocks. Technology was flat on the day, but a few names were up pretty significantly."
Economic and Earnings News
The ISM manufacturing index dropped to 49.5 in November, down from October's reading of 51.7. This move below 50 indicates a shift from expansion to contraction in U.S. factory activity. The magnitude of the decline caught economists off-guard, as the consensus estimate called for a milder pullback to 51.0.
Construction spending rose 1.4% in October to a seasonally adjusted annual pace of $872.14 billion, reported the Commerce Department, besting the average Wall Street estimate for a gain of 0.5%. This marked the biggest monthly jump in construction spending in just over three years.
More Stocks Making News :
Verizon Communications ( VZ ) earned an upgrade ahead of the bell.
Intel ( INTC ) , meanwhile, was hit with a price-target cut.
Boeing (BA) is hoping to avoid a one-day strike.
Research In Motion (RIMM) was downgraded to "sell" at Canaccord Genuity.
DreamWorks Animation's (DWA) cinematic flop triggered a negative analyst note.
Dell (DELL) moved into double digits after Goldman Sachs changed its tune.
For today's activity in commodities, options, and more, head to page 2.
In the Options Pits :
Facebook (FB) fans scooped up front-month calls.
Fifth Third Bancorp (FITB) shareholders may be bracing for a pullback.
Procter & Gamble (PG)) was also popular among protective put buyers.
General Electric (GE) garnered attention from put writers.
Advanced Micro Devices (AMD) received a vote of confidence from the options crowd.
Qihoo 360 Technology (QIHU) calls were in high demand.
Sprint Nextel (S) speculators scooped up out-of-the-money puts.
These two steel stocks were trending in the options arena.
United Continental (UAL) was targeted for an anti-volatility play.
Commodities
Crude futures extended their winning streak to a third straight session, as an ailing greenback translated into a boon for dollar-denominated commodities. Furthermore, solid manufacturing data out of China helped to offset lackluster factory activity at home. By the close, January-dated oil tacked on 18 cents, or 0.2%, to finish at $89.09 per barrel.
Dollar weakness also lifted gold futures, as did "safe haven" demand amid fiscal-cliff uncertainty. By the time the dust settled, gold for February delivery advanced $8.40, or 0.5%, to end at $1,721.10 an ounce.
At the end of every market day, the staff at Schaeffer's Investment Research reviews the trading day in detail, covering major events and key market developments. Don't miss this critical, timely and insightful report. If you enjoyed today's edition of Market Recap, sign up here for free daily delivery straight to your inbox.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Just eight of the Dow's 30 components avoided the red, with Cisco Systems' ( CSCO ) 0.6% gain leading the seven advancers, and Alcoa ( AA ) finishing flat. Stocks erased early gains on signs of contracting U.S. manufacturing activity, and House Republicans' budget proposal failed to spark optimism about bipartisan deal-making. Continue reading for more on today's market events, including : Daily Game Plan : Senior Trading Analyst Bryan Sapp explains why you should play this zone in the short term .
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Just eight of the Dow's 30 components avoided the red, with Cisco Systems' ( CSCO ) 0.6% gain leading the seven advancers, and Alcoa ( AA ) finishing flat. Continue reading for more on today's market events, including : Daily Game Plan : Senior Trading Analyst Bryan Sapp explains why you should play this zone in the short term . and... Everything You Need to Know : Your one-stop shop for levels to watch, economic data, earnings reports, stocks on the move, and commodities action.
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Just eight of the Dow's 30 components avoided the red, with Cisco Systems' ( CSCO ) 0.6% gain leading the seven advancers, and Alcoa ( AA ) finishing flat. Continue reading for more on today's market events, including : Daily Game Plan : Senior Trading Analyst Bryan Sapp explains why you should play this zone in the short term . and... Everything You Need to Know : Your one-stop shop for levels to watch, economic data, earnings reports, stocks on the move, and commodities action.
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Just eight of the Dow's 30 components avoided the red, with Cisco Systems' ( CSCO ) 0.6% gain leading the seven advancers, and Alcoa ( AA ) finishing flat. For today's activity in commodities, options, and more, head to page 2. Sprint Nextel (S) speculators scooped up out-of-the-money puts.
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1484.0
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2012-11-29 00:00:00 UTC
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Dow Reclaims 13K as Wall Street Keeps the Faith in Washington
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It was another restless session for the Dow Jones Industrial Average (DJI) , thanks to mixed messages from Capitol Hill. Just a day after waxing optimistic on fiscal-cliff talks, House Speaker John Boehner (R-Ohio) admitted to "no substantive progress" in Washington, D.C., sending stocks lower around midday. However, while Senate Majority Leader Harry Reid (D-Nev.) pointed the finger at Republicans, he vowed Congress will "finalize this this year." Against this backdrop, and thanks to a round of encouraging economic data, Wall Street maintained the glass-half-full approach, with stocks finishing higher for a second straight day.
Continue reading for more on today's market events, including :
Schaeffer on Charts : Senior VP of Research Todd Salamone dissects the market's reaction to certain fiscal-cliff jargon .
Daily Game Plan : Senior Trading Analyst Bryan Sapp explains why traders should focus on stock picking over market timing .
In Focus : Examining the S&P 400 MidCap's (MID) dance with the millennium mark .
and...
Everything You Need to Know : Your one-stop shop for levels to watch, economic data, earnings reports, stocks on the move, and commodities action.
The Dow Jones Industrial Average (DJIA) traded in a range of more than 100 points, but ultimately ended 36.7 points, or 0.3%, higher. As such, the blue-chip barometer settled north of both the 13,000 level and its 200-day moving average -- a feat accomplished just once since Nov. 6. Among the index's 30 components, UnitedHealth Group ( UNH ) led the 21 advancers with a 3% gain, while Intel ( INTC ) paced the eight decliners with a 2.8% loss. Alcoa ( AA ), meanwhile, finished flat.
The S&P 500 Index (SPX) also dipped its toes in the red, but spent most of the session comfortably higher. By the close, the broad-market barometer tacked on 6 points, or 0.4%. Not to be outdone, the Nasdaq Composite (COMP) avoided negative territory altogether, soaring 20.2 points, or 0.7%, to end atop the 3,000 level for the first time since Nov. 6.
On the other hand, the CBOE Market Volatility Index (VIX) gave up 2.9% on the day.
A Trader's Take
"There was once again a lot of rhetoric from Washington regarding the fiscal cliff, but in the end the strong pending home sales report and a great revision higher to third-quarter gross domestic product (GDP) were big pluses for the bulls," said Schaeffer's Senior Technical Strategist Ryan Detrick. "After yesterday's strong price action we didn't give anything up -- in fact, we gained some more. Under the surface we had some big-time outperformance from small caps. They usually lead during healthy times, and that is exactly what we've been seeing recently."
Broadening the scope a bit, Detrick noted, "The reality is the economy isn't great and the fiscal cliff is scaring everyone; still, the economy is on much better footing than most give it credit. With the lowered overall expectations we've been talking about, this could be a really nice sign for continued gains."
Economic and Earnings News
Initial jobless claims fell by 23,000 last week to a seasonally adjusted 393,000, reported the Labor Department, as claims for the previous week were upwardly revised to 416,000. The data was stronger than anticipated, as economists were looking for 395,000 first-time claims for unemployment benefits. However, the four-week moving average of initial claims rose by 7,500 to hit a new annual high of 405,250.
The U.S. economy expanded at an annual rate of 2.7% during the third quarter, according to the Commerce Department, up from the advance estimate of 2.0%. The preliminary GDP reading fell just shy of the consensus estimate for 2.8% growth, but marked the fastest pace of expansion since the fourth quarter of 2009.
The National Association of Realtors (NAR) said its pending home sales index improved 5.2% in October to 104.8, blowing past economists' average estimate for a 1.0% rise. Additionally, the September index was upwardly revised to 99.6. "We're seeing more impact now from steady job creation and rising consumer confidence about home buying," noted NAR Chief Economist Lawrence Yun.
Optimism rose during the week ended Nov. 28, according to the latest survey by the American Association of Individual Investors (AAII). The percentage of respondents with a bullish view on stocks checked in at 40.9%, up from 35.8% in the previous week. The percentage bearish dropped to 34.4% from 40.8%, while the percentage neutral edged up to 24.7% from 23.4%.
More Stocks Making News :
Research In Motion ( RIMM ) earned an upgrade from Goldman Sachs.
Groupon's ( GRPN ) CEO decided to set the record straight.
Microsoft (MSFT) was hit with a price-target cut.
Aeropostale (ARO) was scorned after issuing lackluster guidance.
Kroger (KR) tagged a new high after reporting strong earnings.
Hain Celestial (HAIN) emerged as a stock to watch for contrarian bulls.
For today's activity in commodities, options, and more, head to page 2.
In the Options Pits :
Cisco Systems (CSCO) was targeted for a volatility play.
Target (TGT) bears cashed in on disappointing sales data.
Zynga (ZNGA) bulls have high hopes for 2013.
Sirius XM Radio (SIRI) was the center of a bullish spread.
Alpha Natural Resources (ANR) attracted short-term call players.
Costco Wholesale (COST) saw a relatively rare spike in call activity.
Starbucks (SBUX) speculators picked up weekly calls.
Nvidia (NVDA) option players rolled the dice on support.
US Airways (LCC) calls picked up steam.
Commodities
Oil futures ticked higher for the first session in four, as an upwardly revised GDP number and hopes for a fiscal-cliff resolution bolstered expectations for demand. In addition, stronger-than-expected housing and jobless data also lifted black gold. By the close, January-dated crude added $1.58, or 1.8%, to settle at $88.07 per barrel.
Gold futures also snapped a three-session losing streak, with an ailing greenback luring foreign-currency holders to the dollar-denominated commodity. Furthermore, hints of additional stimulus measures on the horizon translated into a boon for gold, after New York Fed President William Dudley said he'd "be assessing the employment and inflation outlook in order to determine whether we should continue Treasury purchases into 2013." By the time the dust settled, December-dated gold gained $10.70, or 0.6%, to finish at $1,727.20 an ounce.
At the end of every market day, the staff at Schaeffer's Investment Research reviews the trading day in detail, covering major events and key market developments. Don't miss this critical, timely and insightful report. If you enjoyed today's edition of Market Recap, sign up here for free daily delivery straight to your inbox.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alcoa ( AA ), meanwhile, finished flat. Optimism rose during the week ended Nov. 28, according to the latest survey by the American Association of Individual Investors (AAII). Just a day after waxing optimistic on fiscal-cliff talks, House Speaker John Boehner (R-Ohio) admitted to "no substantive progress" in Washington, D.C., sending stocks lower around midday.
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Alcoa ( AA ), meanwhile, finished flat. Optimism rose during the week ended Nov. 28, according to the latest survey by the American Association of Individual Investors (AAII). and... Everything You Need to Know : Your one-stop shop for levels to watch, economic data, earnings reports, stocks on the move, and commodities action.
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Alcoa ( AA ), meanwhile, finished flat. Optimism rose during the week ended Nov. 28, according to the latest survey by the American Association of Individual Investors (AAII). and... Everything You Need to Know : Your one-stop shop for levels to watch, economic data, earnings reports, stocks on the move, and commodities action.
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Alcoa ( AA ), meanwhile, finished flat. Optimism rose during the week ended Nov. 28, according to the latest survey by the American Association of Individual Investors (AAII). The Dow Jones Industrial Average (DJIA) traded in a range of more than 100 points, but ultimately ended 36.7 points, or 0.3%, higher.
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1485.0
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2012-11-26 00:00:00 UTC
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After Hours Most Active for Nov 26, 2012 : MSFT, INTC, GE, BRCM, CVC, T, PFE, NVDA, FB, AA, S, WFM
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https://www.nasdaq.com/articles/after-hours-most-active-nov-26-2012-msft-intc-ge-brcm-cvc-t-pfe-nvda-fb-aa-s-wfm-2012-11
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The NASDAQ 100 After Hours Indicator is down -.47 to 2,651.2. The total After hours volume is currently 28,613,771 shares traded.
The following are the most active stocks for the after hours session :
Microsoft Corporation ( MSFT ) is -0.015 at $27.37, with 3,480,721 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2013. The consensus EPS forecast is $0.79. As reported by Zacks, the current mean recommendation for MSFT is in the "buy range".
Intel Corporation ( INTC ) is -0.015 at $19.87, with 2,903,789 shares traded. INTC's current last sale is 89.3% of the target price of $22.25.
General Electric Company ( GE ) is +0.01 at $21.07, with 2,420,676 shares traded. As reported by Zacks, the current mean recommendation for GE is in the "buy range".
Broadcom Corporation ( BRCM ) is -0.0968 at $32.07, with 2,057,884 shares traded. As reported by Zacks, the current mean recommendation for BRCM is in the "buy range".
Cablevision Systems Corporation ( CVC ) is unchanged at $14.02, with 1,932,280 shares traded. CVC's current last sale is 82.47% of the target price of $17.
AT&T Inc. ( T ) is -0.0601 at $33.91, with 1,612,710 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2012. The consensus EPS forecast is $0.5. T's current last sale is 91.65% of the target price of $37.
Pfizer, Inc. ( PFE ) is +0.0049 at $24.49, with 1,536,530 shares traded. As reported by Zacks, the current mean recommendation for PFE is in the "buy range".
NVIDIA Corporation ( NVDA ) is +0.015 at $12.12, with 1,433,486 shares traded. NVDA's current last sale is 80.8% of the target price of $15.
Facebook, Inc. ( FB ) is +0.03 at $25.97, with 1,215,736 shares traded. As reported by Zacks, the current mean recommendation for FB is in the "buy range".
Alcoa Inc. ( AA ) is -0.005 at $8.30, with 1,153,892 shares traded. AA's current last sale is 83% of the target price of $10.
Sprint Nextel Corporation ( S ) is +0.0062 at $5.63, with 1,077,810 shares traded. Over the last four weeks they have had 11 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2012. The consensus EPS forecast is $-0.47. S's current last sale is 93.77% of the target price of $6.
Whole Foods Market, Inc. ( WFM ) is -0.06 at $92.09, with 583,182 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2013. The consensus EPS forecast is $0.74. As reported by Zacks, the current mean recommendation for WFM is in the "buy range".
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alcoa Inc. ( AA ) is -0.005 at $8.30, with 1,153,892 shares traded. AA's current last sale is 83% of the target price of $10. The following are the most active stocks for the after hours session : Microsoft Corporation ( MSFT ) is -0.015 at $27.37, with 3,480,721 shares traded.
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Alcoa Inc. ( AA ) is -0.005 at $8.30, with 1,153,892 shares traded. AA's current last sale is 83% of the target price of $10. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2013.
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Alcoa Inc. ( AA ) is -0.005 at $8.30, with 1,153,892 shares traded. AA's current last sale is 83% of the target price of $10. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2013.
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Alcoa Inc. ( AA ) is -0.005 at $8.30, with 1,153,892 shares traded. AA's current last sale is 83% of the target price of $10. The following are the most active stocks for the after hours session : Microsoft Corporation ( MSFT ) is -0.015 at $27.37, with 3,480,721 shares traded.
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1486.0
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2012-11-16 00:00:00 UTC
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Market Close Report: NASDAQ Composite index closes at 2,853.13 up 16.19 points
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https://www.nasdaq.com/articles/market-close-report-nasdaq-composite-index-closes-285313-1619-points-2012-11-16
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Friday's session closes with the NASDAQ Composite Index at 2,853.13. The total shares traded for the NASDAQ was over 2.14 billion.
Advancers stocks led declining by 1.43 to 1 ratio. There were 1437 advancers and 1002 decliners for the day. On the NASDAQ Stock Exchange 5 stocks reached a 52 week high and 73 those reaching lows totaled. The most active, advancers, decliners, unusual volume and most active by dollar volume can be monitored intraday on the Most Active Stocks page.
The NASDAQ 100 index closed up .39% for the day; a total of 9.8 points. The current value is 2,534.16. Sears Holdings Corporation ( SHLD ) had the largest percent change down (-18.79%) while Green Mountain Coffee Roasters, Inc. ( GMCR ) had the largest percent change gain rising 4.69%.
The Dow Jones index closed up .37% for the day; a total of 45.93 points. The current value is 12,588.31. Hewlett-Packard Company ( HPQ ) had the largest percent change down (-1.76%) while Alcoa Inc. ( AA ) had the largest percent change gain rising 1.61%.
NASDAQ Market Wrap
As of 11/16/2012 4:45:03 PM
BILLIONS OF 2.14 NASDAQ SHARES TRADED TODAY 5 STOCKS REACHED A 52 WEEK HIGH 73 THOSE REACHING LOWS TOTALEDGreen Mountain Coffee Roasters, Inc.[GMCR]TOPS ADVANCERS LISTOF NASDAQ 100 % 4.69 INDEXGMCR ROSE
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Hewlett-Packard Company ( HPQ ) had the largest percent change down (-1.76%) while Alcoa Inc. ( AA ) had the largest percent change gain rising 1.61%. Sears Holdings Corporation ( SHLD ) had the largest percent change down (-18.79%) while Green Mountain Coffee Roasters, Inc. ( GMCR ) had the largest percent change gain rising 4.69%. The Dow Jones index closed up .37% for the day; a total of 45.93 points.
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Hewlett-Packard Company ( HPQ ) had the largest percent change down (-1.76%) while Alcoa Inc. ( AA ) had the largest percent change gain rising 1.61%. On the NASDAQ Stock Exchange 5 stocks reached a 52 week high and 73 those reaching lows totaled. Sears Holdings Corporation ( SHLD ) had the largest percent change down (-18.79%) while Green Mountain Coffee Roasters, Inc. ( GMCR ) had the largest percent change gain rising 4.69%.
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Hewlett-Packard Company ( HPQ ) had the largest percent change down (-1.76%) while Alcoa Inc. ( AA ) had the largest percent change gain rising 1.61%. On the NASDAQ Stock Exchange 5 stocks reached a 52 week high and 73 those reaching lows totaled. Sears Holdings Corporation ( SHLD ) had the largest percent change down (-18.79%) while Green Mountain Coffee Roasters, Inc. ( GMCR ) had the largest percent change gain rising 4.69%.
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Hewlett-Packard Company ( HPQ ) had the largest percent change down (-1.76%) while Alcoa Inc. ( AA ) had the largest percent change gain rising 1.61%. There were 1437 advancers and 1002 decliners for the day. The NASDAQ 100 index closed up .39% for the day; a total of 9.8 points.
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1487.0
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2012-11-16 00:00:00 UTC
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Dow Wins the Daily Battle But Loses the Weekly War
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https://www.nasdaq.com/articles/dow-wins-daily-battle-loses-weekly-war-2012-11-16
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The Dow Jones Industrial Average (DJI) got off to a rough start, and early signs pointed to another dismal day on Wall Street. However, indications of actual bipartisanship in Washington, D.C., lured a few buyers from the sidelines, with congressional leaders calling "fiscal cliff" talks with the president "constructive." With hope seemingly on the horizon, the major market indexes turned higher, snapping their losing streaks.
Continue reading for more on today's market events, including :
Daily Game Plan : Until this level is retaken , markets are guilty until proven innocent, explains Schaeffer's Senior Trading Analyst Bryan Sapp.
Most Active Options Update : Three big-cap stocks attracting notable attention .
In Focus : Why won't the market's "fear gauge" go higher?
and...
Everything You Need to Know : Your one-stop shop for levels to watch, economic data, earnings reports, stocks on the move, and commodities action.
The Dow Jones Industrial Average (DJIA) was down about 70 points at its intraday nadir, but rebounded to notch a 45.9-point, or 0.4%, gain and end its four-day retreat. Twenty-two of the Dow's 30 components ended higher, led by Alcoa's ( AA ) 1.6% gain. Meanwhile, Hewlett-Packard ( HPQ ) paced the eight declining equities, shedding 1.8%. For the week, the Dow gave up 1.8%, but maintained a perch atop its 80-week trendline.
Likewise, the S&P 500 Index (SPX) clawed its way out of the red, adding 6.6 points, or 0.5%. The Nasdaq Composite (COMP) followed suit, tacking on 16.2 points, or 0.6%, after spending the first half of the session south of breakeven. For the week, the SPX and COMP gave up 1.5% and 1.8%, respectively.
The CBOE Market Volatility Index (VIX) dropped 1.6 points, or 8.8%, but found a foothold atop its 10-week moving average.
A Trader's Take
"In the end, it was a lot of volatility, but nothing really happened," said Senior Technical Strategist Ryan Detrick. "Still, we did finish green, which is a nice change given the recent performance. There wasn't a lot of news out there, but I am very encouraged by the recent investor sentiment polls. We are seeing fear spike up to levels last seen at the June lows. Now, of course, this doesn't mean we bottom right here and now, but having a lot of fear is one necessity for a major bottom, and we are seeing that now."
Looking ahead to next week, "I'm sure we'll have more rumors about the fiscal cliff and Europe to drive the daily action," he continued. "Then, considering volume will be very light during a holiday week, there is always the chance that we could have another volatile week coming up."
Economic and Earnings News
Industrial production declined by 0.4% in October, said the Federal Reserve, as Superstorm Sandy shaved about one percentage point from monthly U.S. output. Capacity utilization contracted to 77.8% from 78.2%. Consensus estimates were pegged considerably higher, as economists were looking for production to rise 0.2% on 78.3% utilization.
More Stocks Making News :
Dow heavyweight Wal-Mart Stores (WMT) was hit with a post-earnings price-target cut, while retailer The Gap ( GPS ) was rewarded with a post-earnings upgrade.
Blue chip Procter & Gamble ( PG ) announced cutbacks to its non-manufacturing workforce.
Chinese Internet issue SINA Corp. ( SINA ) forecast lower fourth-quarter sales.
For today's activity in commodities, options, and more, head to page 2.
In the Options Pits
Option bears blitzed Google (GOOG) ahead of expiration.
Traders gambled on an extended rally for Akamai Technologies (AKAM) .
Option players waxed pessimistic on Nike (NKE) , despite today's bounce.
Short-term speculators swarmed Pfizer (PFE) , while Nvidia (NVDA) was targeted by longer-term bulls.
Sherwin-Williams (SHW) emerged as a potential contrarian play.
Commodities
Crude futures closed higher today, catching a lift from the intensifying conflict between Israel and Palestine. December-dated oil settled on a gain of $1.22, or 1.4%, at $86.67 per barrel. For the week, crude advanced 0.8%.
Gold futures managed a minor gain, with geopolitical anxiety helping the precious metal bounce back from Thursday's drubbing. The December contract tacked on 90 cents, or roughly 0.1%, to close at $1,714.70 per ounce. On a weekly basis, however, gold fell 0.9%.
At the end of every market day, the staff at Schaeffer's Investment Research reviews the trading day in detail, covering major events and key market developments. Don't miss this critical, timely and insightful report. If you enjoyed today's edition of Market Recap, sign up here for free daily delivery straight to your inbox.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Twenty-two of the Dow's 30 components ended higher, led by Alcoa's ( AA ) 1.6% gain. The Dow Jones Industrial Average (DJI) got off to a rough start, and early signs pointed to another dismal day on Wall Street. However, indications of actual bipartisanship in Washington, D.C., lured a few buyers from the sidelines, with congressional leaders calling "fiscal cliff" talks with the president "constructive."
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Twenty-two of the Dow's 30 components ended higher, led by Alcoa's ( AA ) 1.6% gain. and... Everything You Need to Know : Your one-stop shop for levels to watch, economic data, earnings reports, stocks on the move, and commodities action. Economic and Earnings News Industrial production declined by 0.4% in October, said the Federal Reserve, as Superstorm Sandy shaved about one percentage point from monthly U.S. output.
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Twenty-two of the Dow's 30 components ended higher, led by Alcoa's ( AA ) 1.6% gain. Continue reading for more on today's market events, including : Daily Game Plan : Until this level is retaken , markets are guilty until proven innocent, explains Schaeffer's Senior Trading Analyst Bryan Sapp. The Dow Jones Industrial Average (DJIA) was down about 70 points at its intraday nadir, but rebounded to notch a 45.9-point, or 0.4%, gain and end its four-day retreat.
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Twenty-two of the Dow's 30 components ended higher, led by Alcoa's ( AA ) 1.6% gain. Continue reading for more on today's market events, including : Daily Game Plan : Until this level is retaken , markets are guilty until proven innocent, explains Schaeffer's Senior Trading Analyst Bryan Sapp. For the week, the SPX and COMP gave up 1.5% and 1.8%, respectively.
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1488.0
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2012-11-16 00:00:00 UTC
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Alcoa to Sale Tapoco Project - Analyst Blog
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https://www.nasdaq.com/articles/alcoa-to-sale-tapoco-project-analyst-blog-2012-11-16
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Aluminum giant Alcoa Inc. ( AA ) announced the sale of its 378-megawatt Tapoco Hydroelectric Project to Brookfield Renewable Energy Partners, a Canadian company engaged in operating renewable energy platforms worldwide.
Tapoco is a four-station hydroelectric project located on the Little Tennessee and Cheoah Rivers in eastern Tennessee and western North Carolina. The sale includes four hydroelectric power generating stations and dams, 86 miles of transmission line and a total of 14,500 acres of land surrounding Tapoco.
Alcoa was responsible for the construction of the Tapoco Hydroelectric Project and secured its license from the Federal Energy Regulatory Commission to power its aluminum smelting and rolling mill operations in Alcoa, Tennessee.
Brookfield Renewable Energy Partners operates one of the largest publicly-traded, pure-play renewable power platforms globally. Its portfolio is primarily hydroelectric and totals approximately 5,000 megawatts of installed capacity.
Last month, Alcoa reported a loss of $143 million or 13 cents for the third quarter of 2012, driven by a hefty charge associated with environmental remediation and legal settlement, and lower aluminum pricing. It compared with a profit of $172 million or 15 cents a share in the year-ago quarter.
Excluding one-time special items (a $175 million charge mainly related to environmental remediation of the Grasse River and the settlement of a civil lawsuit with Aluminum Bahrain), Alcoa earned $32 million or 3 cents a share in the quarter compared with the Zacks Consensus Estimate of a break even result. The company incurred a $40 million charge associated with the legal settlement in the quarter.
Revenues decreased 9.1% year over year and 2.2% sequentially to $5,833 million, but were ahead of the Zacks Consensus Estimate of $5,565 million. Alcoa said that aluminum prices dropped 17% year over year and 5% sequentially in the third quarter.
Alcoa witnessed strong productivity growth in its upstream and downstream businesses in the quarter on the back of higher utilization rates, process innovations, lower scrap rates and usage reductions. The company saw healthy demand across the aerospace and automotive markets in the quarter.
The company has lowered its global aluminum demand forecast for 2012 to 6% from its earlier expectation of 7%, owing to the slowdown in China. The company, however, expects the aluminum market to double in 2020 from the 2010 level as the market is already ahead of the required 6.5% compound annual growth rate.
Pennsylvania-based Alcoa Inc. is among the world's leading producers of primary and fabricated aluminum and alumina. The company competes with Aluminum Corporation Of China Limited ( ACH ) and RioTinto plc. ( RIO ). It currently retains a Zacks #3 Rank, which translates into a short-term (1 to 3 months) Hold rating and we have a long-term Neutral recommendation on the stock.
ALCOA INC (AA): Free Stock Analysis Report
ALUMINUM CP-ADR (ACH): Free Stock Analysis Report
RIO TINTO-ADR (RIO): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Aluminum giant Alcoa Inc. ( AA ) announced the sale of its 378-megawatt Tapoco Hydroelectric Project to Brookfield Renewable Energy Partners, a Canadian company engaged in operating renewable energy platforms worldwide. ALCOA INC (AA): Free Stock Analysis Report ALUMINUM CP-ADR (ACH): Free Stock Analysis Report RIO TINTO-ADR (RIO): Free Stock Analysis Report To read this article on Zacks.com click here. The sale includes four hydroelectric power generating stations and dams, 86 miles of transmission line and a total of 14,500 acres of land surrounding Tapoco.
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Aluminum giant Alcoa Inc. ( AA ) announced the sale of its 378-megawatt Tapoco Hydroelectric Project to Brookfield Renewable Energy Partners, a Canadian company engaged in operating renewable energy platforms worldwide. ALCOA INC (AA): Free Stock Analysis Report ALUMINUM CP-ADR (ACH): Free Stock Analysis Report RIO TINTO-ADR (RIO): Free Stock Analysis Report To read this article on Zacks.com click here. Excluding one-time special items (a $175 million charge mainly related to environmental remediation of the Grasse River and the settlement of a civil lawsuit with Aluminum Bahrain), Alcoa earned $32 million or 3 cents a share in the quarter compared with the Zacks Consensus Estimate of a break even result.
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Aluminum giant Alcoa Inc. ( AA ) announced the sale of its 378-megawatt Tapoco Hydroelectric Project to Brookfield Renewable Energy Partners, a Canadian company engaged in operating renewable energy platforms worldwide. ALCOA INC (AA): Free Stock Analysis Report ALUMINUM CP-ADR (ACH): Free Stock Analysis Report RIO TINTO-ADR (RIO): Free Stock Analysis Report To read this article on Zacks.com click here. Excluding one-time special items (a $175 million charge mainly related to environmental remediation of the Grasse River and the settlement of a civil lawsuit with Aluminum Bahrain), Alcoa earned $32 million or 3 cents a share in the quarter compared with the Zacks Consensus Estimate of a break even result.
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ALCOA INC (AA): Free Stock Analysis Report ALUMINUM CP-ADR (ACH): Free Stock Analysis Report RIO TINTO-ADR (RIO): Free Stock Analysis Report To read this article on Zacks.com click here. Aluminum giant Alcoa Inc. ( AA ) announced the sale of its 378-megawatt Tapoco Hydroelectric Project to Brookfield Renewable Energy Partners, a Canadian company engaged in operating renewable energy platforms worldwide. Alcoa was responsible for the construction of the Tapoco Hydroelectric Project and secured its license from the Federal Energy Regulatory Commission to power its aluminum smelting and rolling mill operations in Alcoa, Tennessee.
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1489.0
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2012-11-05 00:00:00 UTC
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After Hours Most Active for Nov 5, 2012 : ESRX, JCP, QQQ, AA, RIMM, Z, FTR, BAC, INTC, TSM, BLL, NLY
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https://www.nasdaq.com/articles/after-hours-most-active-nov-5-2012-esrx-jcp-qqq-aa-rimm-z-ftr-bac-intc-tsm-bll-nly-2012-11
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The NASDAQ 100 After Hours Indicator is down -7.31 to 2,665.6. The total After hours volume is currently 24,723,492 shares traded.
The following are the most active stocks for the after hours session :
Express Scripts Holding Company ( ESRX ) is -8.78 at $54.10, with 2,351,428 shares traded. RTT News Reports: Express Scripts Q3 Profit Rises - Quick Facts
J.C. Penney Company, Inc. Holding Company ( JCP ) is -0.0208 at $23.33, with 1,750,974 shares traded.JCP is scheduled to provide an earnings report on 11/9/2012, for the fiscal quarter ending Oct2012. The consensus earnings per share forecast is -0.05 per share, which represents a 18 percent increase over the EPS one Year Ago
PowerShares QQQ Trust, Series 1 ( QQQ ) is -0.19 at $65.41, with 1,261,535 shares traded. This represents a 23.72% increase from its 52 Week Low.
Alcoa Inc. ( AA ) is +0.0099 at $8.62, with 1,075,048 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2012. The consensus EPS forecast is $0.07. AA's current last sale is 86.2% of the target price of $10.
Research in Motion Limited ( RIMM ) is unchanged at $8.90, with 876,320 shares traded. RIMM's current last sale is 111.25% of the target price of $8.
Zillow, Inc. ( Z ) is -7.92 at $26.45, with 734,732 shares traded. RTT News Reports: Zillow Q3 12 Earnings Conference Call At 5:00 PM ET
Frontier Communications Corporation ( FTR ) is +0.0095 at $4.65, with 720,111 shares traded.FTR is scheduled to provide an earnings report on 11/6/2012, for the fiscal quarter ending Sep2012. The consensus earnings per share forecast is 0.07 per share, which represents a 5 percent increase over the EPS one Year Ago
Bank of America Corporation ( BAC ) is -0.02 at $9.73, with 705,802 shares traded. Over the last four weeks they have had 8 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2012. The consensus EPS forecast is $0.2. BAC's current last sale is 97.3% of the target price of $10.
Intel Corporation ( INTC ) is -0.2191 at $21.62, with 602,405 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2013. The consensus EPS forecast is $0.53. INTC's current last sale is 95.03% of the target price of $22.75.
Taiwan Semiconductor Manufacturing Company Limited ( TSM ) is +0.0032 at $15.88, with 406,376 shares traded. TSM's current last sale is 105.47% of the target price of $15.06.
Ball Corporation ( BLL ) is -0.28 at $42.93, with 346,586 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2012. The consensus EPS forecast is $0.66. As reported by Zacks, the current mean recommendation for BLL is in the "buy range".
Annaly Capital Management Inc ( NLY ) is -0.05 at $15.84, with 338,100 shares traded.NLY is scheduled to provide an earnings report on 11/6/2012, for the fiscal quarter ending Sep2012. The consensus earnings per share forecast is 0.45 per share, which represents a 65 percent increase over the EPS one Year Ago
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alcoa Inc. ( AA ) is +0.0099 at $8.62, with 1,075,048 shares traded. AA's current last sale is 86.2% of the target price of $10. The following are the most active stocks for the after hours session : Express Scripts Holding Company ( ESRX ) is -8.78 at $54.10, with 2,351,428 shares traded.
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Alcoa Inc. ( AA ) is +0.0099 at $8.62, with 1,075,048 shares traded. AA's current last sale is 86.2% of the target price of $10. The consensus earnings per share forecast is -0.05 per share, which represents a 18 percent increase over the EPS one Year Ago PowerShares QQQ Trust, Series 1 ( QQQ ) is -0.19 at $65.41, with 1,261,535 shares traded.
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Alcoa Inc. ( AA ) is +0.0099 at $8.62, with 1,075,048 shares traded. AA's current last sale is 86.2% of the target price of $10. The consensus earnings per share forecast is -0.05 per share, which represents a 18 percent increase over the EPS one Year Ago PowerShares QQQ Trust, Series 1 ( QQQ ) is -0.19 at $65.41, with 1,261,535 shares traded.
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Alcoa Inc. ( AA ) is +0.0099 at $8.62, with 1,075,048 shares traded. AA's current last sale is 86.2% of the target price of $10. Zillow, Inc. ( Z ) is -7.92 at $26.45, with 734,732 shares traded.
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1490.0
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2012-10-22 00:00:00 UTC
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An Golden Way to Play the Fed's Loose Money Policies
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https://www.nasdaq.com/articles/golden-way-play-feds-loose-money-policies-2012-10-22
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Submitted by Investing Daily as part of our contributors program .
By: Roger Conrad
Freeport-McMoRan Copper & Gold ( FCX ) has endured a choppy stock market ride since May. And not surprisingly, its performance tracks price volatility of the red and yellow metals, its primary products.
The good news for the past couple months: The direction of both producer and metals has been mostly up. With the Federal Reserve extending its loose money policy indefinitely with a third round of quantitative easing or "QE3," more upside likely lies ahead.
There's not much if any evidence now of rising wages, such as spurred the inflationary spiral of the 1970s. Nonetheless, QE3 is at its heart a "weak dollar" policy-and in the past, that's been a sure-fire catalyst for higher US dollar prices of natural resources from oil to copper and gold. Meanwhile, the company continues to adhere to its bullish strategy for growth, with five "super mines" in development around the world.
Mining stocks are the ideal way to play the trend, because their earnings are leveraged to the prices of the metals they produce. A move in copper from $3.00 to $3.50 a pound means a 16.7 percent return for the owner of the raw commodity, but it doubles the profits of a miner producing the red metal for $2.50 in total costs. As a result, mining stocks tend to outperform metals in bull markets and underperform in bear markets.
For the better part of 2012, Freeport shares badly lagged the mostly retreating prices of copper and gold. Since late August, however, the roles have reversed, and we're now in the black on the position.
Freeport's rising production profile is another key catalyst for higher future earnings and share price. In an age where miners are forced to go ever deeper, ever further and into ever more danger to keep up with demand, the company's projects in the Americas alone are on track to produce roughly by 2016 what it produces globally now.
That adds up to an overall boost of as much as 50 percent in four years, even as the company continues its high-margin business of mining gold and molybdenum, the latter used to make high-performance steel.
Freeport has a history of pouring rising production and profits into dividend increases . The May 2012 payout was raised 25 percent from the previous level, for a 317 percent total increase in two years. And there's almost surely more where that came from.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By: Roger Conrad Freeport-McMoRan Copper & Gold ( FCX ) has endured a choppy stock market ride since May. A move in copper from $3.00 to $3.50 a pound means a 16.7 percent return for the owner of the raw commodity, but it doubles the profits of a miner producing the red metal for $2.50 in total costs. That adds up to an overall boost of as much as 50 percent in four years, even as the company continues its high-margin business of mining gold and molybdenum, the latter used to make high-performance steel.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Freeport's rising production profile is another key catalyst for higher future earnings and share price.
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Nonetheless, QE3 is at its heart a "weak dollar" policy-and in the past, that's been a sure-fire catalyst for higher US dollar prices of natural resources from oil to copper and gold. A move in copper from $3.00 to $3.50 a pound means a 16.7 percent return for the owner of the raw commodity, but it doubles the profits of a miner producing the red metal for $2.50 in total costs. That adds up to an overall boost of as much as 50 percent in four years, even as the company continues its high-margin business of mining gold and molybdenum, the latter used to make high-performance steel.
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A move in copper from $3.00 to $3.50 a pound means a 16.7 percent return for the owner of the raw commodity, but it doubles the profits of a miner producing the red metal for $2.50 in total costs. For the better part of 2012, Freeport shares badly lagged the mostly retreating prices of copper and gold. Freeport's rising production profile is another key catalyst for higher future earnings and share price.
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1491.0
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2012-10-18 00:00:00 UTC
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Three Key Metrics to Track Ahead of the Earnings Onslaught
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AA
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https://www.nasdaq.com/articles/three-key-metrics-track-ahead-earnings-onslaught-2012-10-18
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nan
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nan
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Submitted by Wall St. Daily as part of our contributors program .
On Monday, I debunked the age-old practice of treating aluminum giant, Alcoa's ( AA ), earnings as a leading indicator for the rest of corporate America.
It's just not reliable.
A handful of pundits agree with me. Yet they go a step further and contend that JP Morgan Chase ( JPM ) should assume Alcoa's place of prominence. Try again!
While JP Morgan has a broader reach into our economy, it's still just one company. And reading too much into a single company's report is asking for trouble.
There's just no way that doing so can accurately predict the outcome for thousands of other companies. Period.
Accordingly, I don't recommend wasting any more time hunting for such a "Holy Grail" stock. Instead, we should focus on three key metrics that really matter this reporting season.
But before I get to them, let me provide a little context…
Expectations: From Bad to Worse… and Still Irrelevant
No doubt about it: This earnings reporting season, which kicks into high gear next week when 732 companies are scheduled to report, promises to be one of the ugliest in recent memory.
On a whole, S&P 500 companies are expected to report a 2.6% drop in profits. If actual results match that projection, it would end the growth streak we've seen the past 11 quarters in a row.
For months now, analysts and companies alike have been preparing us for this inevitability, as well. I wouldn't read too much into the negativity, though.
As Dan Greenhaus, Chief Global Strategist at BTIG, says, "Earnings guidance is a game that everybody plays and nobody acknowledges."
In other words, companies' overly downbeat projections could be setting the stage for a classic relief rally, as actual results (surprise) come in ahead of expectations.
Even if corporate profits do fall this quarter, though, we need to put them into perspective.
After all, the S&P 500 is still on pace for its third-highest earnings-per-share payout in history of $25. The second-highest total came in the third quarter of 2011, which makes year-over-year comparisons for this quarter tough. We'd basically need to hit an all-time high in profitability, which just isn't reasonable to expect.
So instead of obsessing about the year-over-year earnings growth rate, we should be focusing on these three metrics.
~ Key Statistic #1: Earnings "Beat Rate"
As long as companies are producing more and more profits, stock prices are likely to charge higher.
And to quickly gauge whether or not the stock market should head higher based on earnings, all we have to do is monitor the earnings "beat rate." That is, the percentage of companies beating analysts' expectations for profits.
The bar's set low from last quarter, too. Only 58.7% of companies beat earnings expectations, which is the lowest reading since the bull market began, according to Bespoke Investment Group. So any reading above 60% should propel stock prices higher.
~ Key Statistic #2: Revenue "Beat Rate"
Companies are finding fewer places to cut costs to boost earnings. That means they'll be forced to boost profitability the old fashioned way - by increasing sales.
Again, expectations are low heading into this quarter. Based on estimates from FactSet, third-quarter revenue is supposed to be flat. (At the beginning of the quarter, analysts originally expected sales to grow about 2%. Blame Europe for the reversal.)
Projections mean squat, though. What we want to track are the actual sales results. They represent the clearest sign that demand for goods and services is increasing - or at least hanging tight - in the face of the European slowdown.
Here, too, we don't need to worry about reviewing every last company report. We just need to track the revenue "beat rate," or the percentage of companies beating analysts' expectations for sales.
Like the earnings beat rate, the revenue beat rate came in last quarter at the lowest level since the bull market began, at 48.4%. Any reading above the long-term average of 61.8% should prove to be another catalyst for higher stock prices.
~ Key Statistic #3: Guidance Spread
Since the stock market is a forward-looking beast, past results don't matter as much as expectations for the future. And, obviously, the market could use a healthy dose of optimism right now.
The easy way to get a pulse on expectations for the future is to track the guidance spread. That is, the difference between the percentage of companies raising guidance and the percentage of companies lowering guidance.
Simply put, a positive spread indicates that more companies are optimistic about the future. And a negative spread indicates that more companies are pessimistic.
As a frame of reference, the guidance spread has been negative for the last four quarters. Before that, it was positive for nine quarters in a row.
The end result? Any positive reading this quarter will go a long way to push stock prices higher.
Bottom line: Even after a weaker-than-average second-quarter reporting season, stocks managed to rally 6.5%, as investors had already priced in the worst news. I'm convinced the same is going to happen in the third quarter. With the bar set so low - along with the tendency for stocks to rise in the fourth quarter of a presidential election year - the market's poised to rally into the end of the year.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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On Monday, I debunked the age-old practice of treating aluminum giant, Alcoa's ( AA ), earnings as a leading indicator for the rest of corporate America. In other words, companies' overly downbeat projections could be setting the stage for a classic relief rally, as actual results (surprise) come in ahead of expectations. ~ Key Statistic #3: Guidance Spread Since the stock market is a forward-looking beast, past results don't matter as much as expectations for the future.
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On Monday, I debunked the age-old practice of treating aluminum giant, Alcoa's ( AA ), earnings as a leading indicator for the rest of corporate America. Only 58.7% of companies beat earnings expectations, which is the lowest reading since the bull market began, according to Bespoke Investment Group. We just need to track the revenue "beat rate," or the percentage of companies beating analysts' expectations for sales.
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On Monday, I debunked the age-old practice of treating aluminum giant, Alcoa's ( AA ), earnings as a leading indicator for the rest of corporate America. ~ Key Statistic #1: Earnings "Beat Rate" As long as companies are producing more and more profits, stock prices are likely to charge higher. We just need to track the revenue "beat rate," or the percentage of companies beating analysts' expectations for sales.
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On Monday, I debunked the age-old practice of treating aluminum giant, Alcoa's ( AA ), earnings as a leading indicator for the rest of corporate America. I wouldn't read too much into the negativity, though. And to quickly gauge whether or not the stock market should head higher based on earnings, all we have to do is monitor the earnings "beat rate."
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1492.0
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2012-10-17 00:00:00 UTC
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Housing Sector Is Bright Spot In Otherwise Slow-Moving Day
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AA
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https://www.nasdaq.com/articles/housing-sector-bright-spot-otherwise-slow-moving-day-2012-10-17
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nan
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nan
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Though wading in the red for most of the session, the Dow Jones Industrial Average (DJI) made it four up days in a row, eking out a narrow victory in the last minutes of trading.
"It was a mixed bag today, really. On the whole, earnings were disappointing, especially from big tech concerns like IBM," said Schaeffer's Senior Technical Strategist Ryan Detrick. "But on the other hand, housing starts for September were the strongest in more than four years! I've said this many times before, but the multiple that improving housing data will do for confidence is exponential versus anything the Fed can do by pumping liquidity into the system."
Is a continued upswing in the works for the housing sector? Here are two critical levels to watch , courtesy of the Schaeffer's trading team.
See why Fossil, Inc. ( FOSL ) could be a potential target for contrarians .
And now, a look at the numbers...
Dow Jones Industrial Average (DJI - 13,557.00)International Business Machines Corp.'s ( IBM )AA
The S&P 500 Index (SPX - 1,460.91) and Nasdaq Composite (COMP - 3,104.12) didn't stray too far from breakeven, but followed the Dow into positive territory. The SPX tacked on 6 points, or 0.4%, while the COMP added 3 points, or 0.1%.
The CBOE Market Volatility Index (VIX - 15.07) edged 0.2 point, or nearly 1%, lower today, marking a second day below its 20-day moving average.
Today's highlight : "We've been bullish on housing names all year, so you have to like the fact that although the market was pretty much flat, housing names kicked butt once again," smiled Detrick. "All in all, the stage is still set for a strong fourth-quarter rally, and it very well might be led by housing."
Noteworthy stats at the close:
The equity put/call volume ratio across all 10 options exchanges arrived at 0.77, with 8.4 million calls traded today, compared to roughly 6.5 million puts.
The put/call volume ratio on the iPath S&P 500 VIX Short-Term Futures ETN (NYSEARCA:VXX - 32.98) -- which tagged a new split-adjusted record low of 32.78 -- checked in at 1.30, with puts outnumbering calls.
The New York Stock Exchange (NYSE) showed an advance/decline ratio of 2.28, signaling the number of upward movers outpaced the decliners by a margin of more than two to one. Meanwhile, the advance/decline ratio of 1.60 on the Nasdaq confirmed that the number of upward movers trumped the decliners.
Check our Trading Floor Blog and Daily Options Blog for today's big stories, including:
Technical analysis and a look ahead for Citigroup Inc. ( C ) .
Last-minute option buying on Facebook Inc ( FB ) .
Schaeffer's Weekly Contrarian : Fossil is Starting to Convince the Skeptics.
A potential Intel-inspired influx of call traffic for ON Semiconductor Corp. (ONNN) .
And, in case you missed it ... Schaeffer's On Charts : Two Speed Bumps for Builders.
For today's activity in commodities, options, and more, head to page 2.
Crude futures were virtually flat on the day, as traders digested a surprise uptick in the domestic inventories report against the fastest rise in U.S. housing starts in four years. By the close, oil for November delivery added 3 cents, or less than 0.1%, to settle at $92.12 a barrel.
Gold futures also posted a win, supported by the upbeat housing data and a weakening greenback -- which took a dip after Moody's maintained its credit rating for Spain. December-dated gold jumped $6.70, or 0.4%, to land at $1,753 an ounce.
Levels to watch in trading...
Dow Jones Industrial Average (DJI - 13,557.00) - support at 11,500; resistance at 14,000
S&P 500 Index (SPX - 1,460.91) - support at 1,100; resistance at 1,500
Nasdaq Composite (COMP - 3,104.12) - support at 2,400; resistance at 3,400
At the end of every market day, the staff at Schaeffer's Investment Research reviews the trading day in detail, covering major events and key market developments. Don't miss this critical, timely and insightful report. If you enjoyed today's edition of Market Recap, sign up here for free daily delivery straight to your inbox.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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And now, a look at the numbers... Dow Jones Industrial Average (DJI - 13,557.00)International Business Machines Corp.'s ( IBM )AA The S&P 500 Index (SPX - 1,460.91) and Nasdaq Composite (COMP - 3,104.12) didn't stray too far from breakeven, but followed the Dow into positive territory. Though wading in the red for most of the session, the Dow Jones Industrial Average (DJI) made it four up days in a row, eking out a narrow victory in the last minutes of trading. The put/call volume ratio on the iPath S&P 500 VIX Short-Term Futures ETN (NYSEARCA:VXX - 32.98) -- which tagged a new split-adjusted record low of 32.78 -- checked in at 1.30, with puts outnumbering calls.
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And now, a look at the numbers... Dow Jones Industrial Average (DJI - 13,557.00)International Business Machines Corp.'s ( IBM )AA The S&P 500 Index (SPX - 1,460.91) and Nasdaq Composite (COMP - 3,104.12) didn't stray too far from breakeven, but followed the Dow into positive territory. Noteworthy stats at the close: The equity put/call volume ratio across all 10 options exchanges arrived at 0.77, with 8.4 million calls traded today, compared to roughly 6.5 million puts. Check our Trading Floor Blog and Daily Options Blog for today's big stories, including: Technical analysis and a look ahead for Citigroup Inc. ( C ) .
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And now, a look at the numbers... Dow Jones Industrial Average (DJI - 13,557.00)International Business Machines Corp.'s ( IBM )AA The S&P 500 Index (SPX - 1,460.91) and Nasdaq Composite (COMP - 3,104.12) didn't stray too far from breakeven, but followed the Dow into positive territory. Today's highlight : "We've been bullish on housing names all year, so you have to like the fact that although the market was pretty much flat, housing names kicked butt once again," smiled Detrick. Noteworthy stats at the close: The equity put/call volume ratio across all 10 options exchanges arrived at 0.77, with 8.4 million calls traded today, compared to roughly 6.5 million puts.
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And now, a look at the numbers... Dow Jones Industrial Average (DJI - 13,557.00)International Business Machines Corp.'s ( IBM )AA The S&P 500 Index (SPX - 1,460.91) and Nasdaq Composite (COMP - 3,104.12) didn't stray too far from breakeven, but followed the Dow into positive territory. The SPX tacked on 6 points, or 0.4%, while the COMP added 3 points, or 0.1%. Levels to watch in trading... Dow Jones Industrial Average (DJI - 13,557.00) - support at 11,500; resistance at 14,000 S&P 500 Index (SPX - 1,460.91) - support at 1,100; resistance at 1,500 Nasdaq Composite (COMP - 3,104.12) - support at 2,400; resistance at 3,400 At the end of every market day, the staff at Schaeffer's Investment Research reviews the trading day in detail, covering major events and key market developments.
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1493.0
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2012-10-16 00:00:00 UTC
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Alcoa’s Earnings Report: What is it Good For? Absolutely Nothing!
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AA
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https://www.nasdaq.com/articles/alcoas-earnings-report-what-it-good-absolutely-nothing-2012-10-16
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nan
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nan
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Submitted by Wall St. Daily as part of our contributors program .
Last week, Alcoa (NYSE: AA ) officially kicked-off third-quarter earnings reporting season.
I've always shunned reading too much into a single company's report, particularly Alcoa's. Now I have all the hard evidence I need to back me up.
In honor of Myth-Busting Mondays, let me first prove to you why the aluminum giant's earnings mean - in the emphatic lyrics of Edwin Starr - "Absolutely nothing!"
Then in my next column, I'll share the three statistics that really matter this earnings reporting season.
Let's get to it…
Old Traditions Die Hard
It's been a long-standing tradition on Wall Street to treat Alcoa's results as a barometer for the health of the global economy. And, more importantly, as a leading indicator of what to expect when the rest of corporate America reports results.
Part of that tradition can be attributed to the fact that Alcoa's the first company in the Dow 30 to report results - and that its products are traditionally vital to the economy.
Simply put, old traditions die hard. But it's time to euthanize this one.
Why? Because as Art Hogan, Market Strategist at Lazard Capital Markets, points out, manufacturing accounts for only about 15% of the U.S. economy. Plus, very little aluminum goes into manufacturing outside the construction and auto industries.
Translation: As manufacturing's contribution to the U.S. economy keeps shrinking, Alcoa's significance does, too. Or as Standard & Poor's Howard Silverblatt, says, "Materials is an important sector, but it's very small and not very indicative."
Accordingly, trying to use Alcoa's results alone to predict the outcome for a service-dominated economy makes little to no sense anymore.
The latest data proves it, too…
Since 2009, when Alcoa missed earnings estimates, 72.4% of the companies in the S&P 500 Index actually beat estimates, according to FactSet data. So much for predicting the fate of corporate America.
What about Alcoa's ability to forcast the direction of the stock market, though? Again, the connection is weak, at best.
Fifteen out of the 19 times that Alcoa beat expectations over the last 10 years, the S&P 500 Index increased in value over the next three months.
However, when Alcoa missed expectations over the same period, which is supposed to be an ominous sign for the market, the S&P 500 dipped a mere 0.6% over the next three months. (If the prospect of a 0.6% dip in prices scares you, you shouldn't be invested in the stock market. Just saying.)
As John Butters, Senior Earnings Analyst at FactSet, says, "It appears that Alcoa's earnings performance relative to estimates has little predictive value in determining the earnings performance of the remaining companies in the [S&P 500] Index."
Bottom line: Consider this yet another myth busted. Alcoa's results hold no more predictive ability than the gizzard squeezers who tried to tell the Roman emperors when the Huns would attack (to paraphrase Peter Lynch).
So the fact that Alcoa beat results this quarter is meaningless. What really matters are the three factors I'm going to discuss in my next column on Wednesday. So stay tuned.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Last week, Alcoa (NYSE: AA ) officially kicked-off third-quarter earnings reporting season. In honor of Myth-Busting Mondays, let me first prove to you why the aluminum giant's earnings mean - in the emphatic lyrics of Edwin Starr - "Absolutely nothing!" However, when Alcoa missed expectations over the same period, which is supposed to be an ominous sign for the market, the S&P 500 dipped a mere 0.6% over the next three months.
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Last week, Alcoa (NYSE: AA ) officially kicked-off third-quarter earnings reporting season. And, more importantly, as a leading indicator of what to expect when the rest of corporate America reports results. The latest data proves it, too… Since 2009, when Alcoa missed earnings estimates, 72.4% of the companies in the S&P 500 Index actually beat estimates, according to FactSet data.
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Last week, Alcoa (NYSE: AA ) officially kicked-off third-quarter earnings reporting season. Let's get to it… Old Traditions Die Hard It's been a long-standing tradition on Wall Street to treat Alcoa's results as a barometer for the health of the global economy. Part of that tradition can be attributed to the fact that Alcoa's the first company in the Dow 30 to report results - and that its products are traditionally vital to the economy.
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Last week, Alcoa (NYSE: AA ) officially kicked-off third-quarter earnings reporting season. Then in my next column, I'll share the three statistics that really matter this earnings reporting season. Part of that tradition can be attributed to the fact that Alcoa's the first company in the Dow 30 to report results - and that its products are traditionally vital to the economy.
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1494.0
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2012-10-16 00:00:00 UTC
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The Ironclad Investment Case for Steel
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AA
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https://www.nasdaq.com/articles/ironclad-investment-case-steel-2012-10-16
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nan
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nan
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Turn the inherent risk of highly cyclical businesses into buying opportunities. James Berman scours steel producers to find a "Goldilocks" stock with the right fundamentals, the right amount of leverage - and at the cheap end of its cyclical range. Read about this stock in the tenth edition of The Berman Value Folio . Powered by Berman's keen insight and Trefis's interactive modelling, the Folio's portfolio is up 17.8% since inception just nine months ago.
Portfolio Manager James Berman, president and founder of JBGlobal.com, guides you through his fundamentals driven investment rationale for specific companies. Berman relies on Trefis analysis and modifiable tools to summarize his outlook and invites readers to use these tools to challenge his rationale or create their own views on stocks.
Download the Berman Value Folio
The Ironclad Investment Case for Steel
By James Berman
The market is no longer ripe for the easy picking. If you look at the Trefis Dow valuation on the following page, you'll see their estimate for fair value at 13,993 - only 3% above the current 13,593. Stocks have come very far, very fast, ascending the wall of multiple worries (Euro collapse, fiscal cliff, etc.) as compelling valuation trumped macro concerns - as it
always does in the end.
Caution should be heeded as stocks climb further. The market is no longer dirt cheap, but many sectors and individual stocks still hide in plain sight, neglected by a public that has forsaken equities at precisely the wrong time.
The following categories of stocks are still ready for harvest based on price-to-cash flow metrics:
Homebuilders
Financials
Europe
Japan
Large-Cap Value
Emerging Asia
Industrial Cyclicals
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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James Berman scours steel producers to find a "Goldilocks" stock with the right fundamentals, the right amount of leverage - and at the cheap end of its cyclical range. Portfolio Manager James Berman, president and founder of JBGlobal.com, guides you through his fundamentals driven investment rationale for specific companies. The market is no longer dirt cheap, but many sectors and individual stocks still hide in plain sight, neglected by a public that has forsaken equities at precisely the wrong time.
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Download the Berman Value Folio The Ironclad Investment Case for Steel By James Berman The market is no longer ripe for the easy picking. The following categories of stocks are still ready for harvest based on price-to-cash flow metrics: Homebuilders Financials Europe Japan Large-Cap Value Emerging Asia Industrial Cyclicals The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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James Berman scours steel producers to find a "Goldilocks" stock with the right fundamentals, the right amount of leverage - and at the cheap end of its cyclical range. Berman relies on Trefis analysis and modifiable tools to summarize his outlook and invites readers to use these tools to challenge his rationale or create their own views on stocks. The following categories of stocks are still ready for harvest based on price-to-cash flow metrics: Homebuilders Financials Europe Japan Large-Cap Value Emerging Asia Industrial Cyclicals The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Turn the inherent risk of highly cyclical businesses into buying opportunities. Powered by Berman's keen insight and Trefis's interactive modelling, the Folio's portfolio is up 17.8% since inception just nine months ago. Download the Berman Value Folio The Ironclad Investment Case for Steel By James Berman The market is no longer ripe for the easy picking.
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1495.0
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2012-10-15 00:00:00 UTC
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Weekly Top Insider Buys: AMAT, AA, IHS, AGCO, GEL
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AA
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https://www.nasdaq.com/articles/weekly-top-insider-buys-amat-aa-ihs-agco-gel-2012-10-15
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nan
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nan
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According to GuruFocus Insider Data , these are the largest insider buys during the past week: Applied Materials Inc. ( AMAT ), Alcoa Inc. ( AA ), IHS Inc. ( IHS ), AGCO Corporation ( AGCO ) and Genesis Energy LP ( GEL ).
The overall trend of insiders is illustrated in the chart below:
Applied Materials Inc. ( AMAT ): Director Robert Holmes Swan Bought 8,890 Shares
Director of Applied Materials Inc. Robert Holmes Swan bought 8,890 shares on 10/05/2012 at an average price of $10.89. Applied Materials develops, manufactures, markets and services semiconductor wafer fabrication equipment and related spare parts for the worldwide semiconductor industry. Applied Materials Inc. has a market cap of $13.49 billion; its shares were traded at around $10.89 with a P/E ratio of 12.11 and P/S ratio of 1.28. The dividend yield of Applied Materials Inc. stocks is 3.3%.
On Aug. 15, Applied Materials, Inc. reported results for its third quarter of fiscal 2012 ended July 29, 2012. Applied generated orders of $1.80 billion and net sales of $2.34 billion. Non-GAAP operating income was $431 million, and non-GAAP net income was $300 million or 24 cents per share. GAAP operating income was $322 million, and GAAP net income was $218 million or 17 cents per share.
Last week, Director Robert Holmes Swan bought 8,890 shares of AMAT stock. Director Gerhard H. Parker bought 50,000 shares in August and Senior Vice President, General Counsel and Corporate Secretary Joseph J. Sweeney sold 100,000 shares the same month.
Alcoa Inc. ( AA ): Director Martin Sorrell Bought 4,145 Shares
Director of Alcoa Inc. Martin Sorrell bought 4,145 shares on 10/11/2012 at an average price of $8.69. Alcoa Inc. is the world's producer and manager of primary aluminum, fabricated aluminum and alumina facilities, and is active in all major aspects of the industry. Alcoa Inc. has a market cap of $9.27 billion; its shares were traded at around $8.69 with a P/E ratio of 54.31 and P/S ratio of 0.37. The dividend yield of Alcoa Inc. stocks is 1.38%.
On July 9, Alcoa Inc. reported $0.00 earnings per share, based on a loss from continuing operations of $2 million, which includes special items of $63 million. Excluding the impact of special items, income from continuing operations was $61 million, or $0.06 per share. The company reported strong revenue of $6.0 billion, solid free cash flow and lower debt despite a 4 percent decline in realized aluminum prices sequentially and 18 percent year-on-year.
Last week, Director Martin Sorrell bought 4,145 shares of AA stock.
IHS Inc. ( IHS ): Director C. Michael Armstrong Bought 5,550 Shares
Director of IHS Inc. C. Michael Armstrong, bought 5,550 shares on 10/10/2012 at an average price of $92.05. IHS is the source of information and insight in critical areas that shape today's business landscape. IHS Inc. has a market cap of $6.07 billion; its shares were traded at around $92.05 with a P/E ratio of 35.4 and P/S ratio of 4.58. IHS Inc. had an annual average earnings growth of 15.8% over the past five years.
On Sept. 20, IHS Inc. reported results for the third quarter ended August 31, 2012. Revenue for the third quarter of 2012 totaled $386 million, a 14 percent increase over third quarter 2011 revenue of $339 million. Net income for the third quarter of 2012 was $44 million, or $0.66 per diluted share, compared to third quarter 2011 net income of $41 million, or $0.62 per diluted share.
Last week, Director C. Michael Armstrong bought 5,550 shares of IHS stock. Director Richard Roedel bought 3,101 in September. Senior Vice President Global Sales Brian J. Sweeney and Vice Chairman Daniel Yergin sold shares this month; President and COO Scott Key sold shares in September. Executive Vice President and CFO Richard Walker and CEO and Chairman of the Board Jerre L. Stead sold shares in July.
AGCO Corporation ( AGCO ): Director Mallika Srinivasan Bought 119,487 Shares
Director of AGCO Corporation Mallika Srinivasan bought 119,487 shares on 10/10/2012 at an average price of $46.7. AGCO Corp. is engaged in the manufacturer and distribution of farm equipment, machinery and replacement parts in the U.S. and Canada. AGCO Corporation has a market cap of $4.54 billion; its shares were traded at around $46.7 with a P/E ratio of 8.34 and P/S ratio of 0.52. AGCO Corporation had an annual average earnings growth of 11% over the past 10 years. GuruFocus rated AGCO Corporation the business predictability rank of 3-star.
On July 26, AGCO reported net sales of approximately $2.7 billion for the second quarter of 2012, an increase of approximately 14.1% compared to net sales of $2.4 billion for the second quarter of 2011. Reported and adjusted net income per share were $2.08 for the second quarter of 2012. These results compare to reported net income per share of $1.36 and adjusted net income per share of $1.35 for the second quarter of 2011. Excluding unfavorable currency translation impacts of approximately 11.2%, net sales in the second quarter of 2012 increased approximately 25.3% compared to the same period in 2011.
Last week, Director Mallika Srinivasan bought 119,487 shares of AGCO stock.
Genesis Energy LP ( GEL ): Director James E. Davison Jr. Bought 733,019 Shares
Director of Genesis Energy LP James E. Davison Jr. bought 733,019 shares on 10/05/2012 at an average price of $33.19. Genesis Energy operates crude oil common carrier pipelines and is an independent gatherer and marketer of crude oil in North America, with operations concentrated in Texas, Louisiana, Alabama, Florida, Mississippi and New Mexico. Genesis Energy LP has a market cap of $2.64 billion; its shares were traded at around $33.19 with a P/E ratio of 34.57 and P/S ratio of 0.85. The dividend yield of Genesis Energy LP stocks is 5.54%. Genesis Energy LP had an annual average earnings growth of 6.1% over the past 10 years.
On Aug. 2, Genesis Energy LP reported results for the second quarter of 2012. In the second quarter of 2012, the company recorded net income of $18.6 million compared to $17.4 million for the second quarter of 2011. Available Cash before Reserves (a non-GAAP measure) increased to $43.2 million in the second quarter of 2012 as compared to $31.9 million for the same period in 2011.
This month, CEO Grant E. Sims, Director James E. Davison and Director Sharilyn S. Gasaway bought shares of GEL stock. Director Donald L. Evans and Director William Keen Robertson sold shares.
For the complete list of stocks that were bought by their company executives, go to: Insider Buys.About GuruFocus: GuruFocus.com tracks the stocks picks and portfolio holdings of the world's best investors. This value investing site offers stock screeners and valuation tools. And publishes daily articles tracking the latest moves of the world's best investors. GuruFocus also provides promising stock ideas in 3 monthly newsletters sent to Premium Members .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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According to GuruFocus Insider Data , these are the largest insider buys during the past week: Applied Materials Inc. ( AMAT ), Alcoa Inc. ( AA ), IHS Inc. ( IHS ), AGCO Corporation ( AGCO ) and Genesis Energy LP ( GEL ). Non-GAAP operating income was $431 million, and non-GAAP net income was $300 million or 24 cents per share. GAAP operating income was $322 million, and GAAP net income was $218 million or 17 cents per share.
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According to GuruFocus Insider Data , these are the largest insider buys during the past week: Applied Materials Inc. ( AMAT ), Alcoa Inc. ( AA ), IHS Inc. ( IHS ), AGCO Corporation ( AGCO ) and Genesis Energy LP ( GEL ). Non-GAAP operating income was $431 million, and non-GAAP net income was $300 million or 24 cents per share. GAAP operating income was $322 million, and GAAP net income was $218 million or 17 cents per share.
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According to GuruFocus Insider Data , these are the largest insider buys during the past week: Applied Materials Inc. ( AMAT ), Alcoa Inc. ( AA ), IHS Inc. ( IHS ), AGCO Corporation ( AGCO ) and Genesis Energy LP ( GEL ). Non-GAAP operating income was $431 million, and non-GAAP net income was $300 million or 24 cents per share. GAAP operating income was $322 million, and GAAP net income was $218 million or 17 cents per share.
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According to GuruFocus Insider Data , these are the largest insider buys during the past week: Applied Materials Inc. ( AMAT ), Alcoa Inc. ( AA ), IHS Inc. ( IHS ), AGCO Corporation ( AGCO ) and Genesis Energy LP ( GEL ). Non-GAAP operating income was $431 million, and non-GAAP net income was $300 million or 24 cents per share. GAAP operating income was $322 million, and GAAP net income was $218 million or 17 cents per share.
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1496.0
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2012-10-15 00:00:00 UTC
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Alcoa Signs Tentative BPA Contract - Analyst Blog
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AA
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https://www.nasdaq.com/articles/alcoa-signs-tentative-bpa-contract-analyst-blog-2012-10-15
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nan
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nan
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Aluminum giant Alcoa Inc. ( AA ) announced the signing of a tentative long-term power contract with Bonneville Power Administration (BPA) for its Intalco Works aluminum smelter in Ferndale, Washington. The contract is expected to be finalized by the end of the year and will expire in September 2022.
According to the contract, BPA will provide power supply to the smelter and help sustain the economic impact of the plant in the region. The contact will also allow a 90-day extension along with public comment process on the new contract, followed by a review by BPA.
A few days back, Alcoa reported a loss of $143 million or 13 cents in the third quarter of 2012, hurt by a hefty charge associated with environmental remediation and legal settlement, and lower aluminum pricing. It compared with a profit of $172 million or 15 cents a share in the year-ago quarter.
Excluding one-time special items (a $175 million charge mainly related to environmental remediation of the Grasse River and the settlement of a civil lawsuit against Aluminum Bahrain), Alcoa earned $32 million or 3 cents a share in the quarter compared with the Zacks Consensus Estimate of a break even result on per share basis. The company recorded a $40 million charge associated with the legal settlement in the quarter.
Revenues decreased 9.1% year over year and 2.2% sequentially to $5,833 million, but were ahead of the Zacks Consensus Estimate of $5,565 million. Alcoa said that aluminum prices dropped 17% year over year and 5% sequentially in the third quarter.
Alcoa witnessed strong productivity growth in its upstream and downstream businesses in the quarter on the back of higher utilization rates, process innovations, lower scrap rates and usage reductions. The company saw healthy demand across the aerospace and automotive markets in the quarter.
The company has lowered its global aluminum demand forecast for 2012 to 6% from its earlier expectation of 7%, owing to the slowdown in China. The company, however, expects the aluminum market to double in 2020 from the 2010 levels as the market is already ahead of the required 6.5% compound annual growth rate.
Pennsylvania-based Alcoa Inc. is among the world's leading producers of primary and fabricated aluminum and alumina. The company competes with Aluminum Corporation Of China Limited ( ACH ) and RioTinto plc. ( RIO ). It currently retains a Zacks #3 Rank, which translates into a short-term (1 to 3 months) Hold rating. We have a long-term Neutral recommendation on the stock.
ALCOA INC (AA): Free Stock Analysis Report
ALUMINUM CP-ADR (ACH): Free Stock Analysis Report
RIO TINTO-ADR (RIO): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Aluminum giant Alcoa Inc. ( AA ) announced the signing of a tentative long-term power contract with Bonneville Power Administration (BPA) for its Intalco Works aluminum smelter in Ferndale, Washington. ALCOA INC (AA): Free Stock Analysis Report ALUMINUM CP-ADR (ACH): Free Stock Analysis Report RIO TINTO-ADR (RIO): Free Stock Analysis Report To read this article on Zacks.com click here. According to the contract, BPA will provide power supply to the smelter and help sustain the economic impact of the plant in the region.
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ALCOA INC (AA): Free Stock Analysis Report ALUMINUM CP-ADR (ACH): Free Stock Analysis Report RIO TINTO-ADR (RIO): Free Stock Analysis Report To read this article on Zacks.com click here. Aluminum giant Alcoa Inc. ( AA ) announced the signing of a tentative long-term power contract with Bonneville Power Administration (BPA) for its Intalco Works aluminum smelter in Ferndale, Washington. A few days back, Alcoa reported a loss of $143 million or 13 cents in the third quarter of 2012, hurt by a hefty charge associated with environmental remediation and legal settlement, and lower aluminum pricing.
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Aluminum giant Alcoa Inc. ( AA ) announced the signing of a tentative long-term power contract with Bonneville Power Administration (BPA) for its Intalco Works aluminum smelter in Ferndale, Washington. ALCOA INC (AA): Free Stock Analysis Report ALUMINUM CP-ADR (ACH): Free Stock Analysis Report RIO TINTO-ADR (RIO): Free Stock Analysis Report To read this article on Zacks.com click here. Excluding one-time special items (a $175 million charge mainly related to environmental remediation of the Grasse River and the settlement of a civil lawsuit against Aluminum Bahrain), Alcoa earned $32 million or 3 cents a share in the quarter compared with the Zacks Consensus Estimate of a break even result on per share basis.
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ALCOA INC (AA): Free Stock Analysis Report ALUMINUM CP-ADR (ACH): Free Stock Analysis Report RIO TINTO-ADR (RIO): Free Stock Analysis Report To read this article on Zacks.com click here. Aluminum giant Alcoa Inc. ( AA ) announced the signing of a tentative long-term power contract with Bonneville Power Administration (BPA) for its Intalco Works aluminum smelter in Ferndale, Washington. According to the contract, BPA will provide power supply to the smelter and help sustain the economic impact of the plant in the region.
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1497.0
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2012-10-11 00:00:00 UTC
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Company News for October 11, 2012 - Corporate Summary
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AA
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https://www.nasdaq.com/articles/company-news-for-october-11-2012-corporate-summary-2012-10-11
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• Shares of FedEx Corporation (NYSE: FDX ) jumped 5.2% after it announced cost-cutting measures and set a $1.7 billion "profitability improvement" target in the next three years
• Alcoa, Inc. (NYSE: AA ) reported a third quarter loss of $0.13 per share after close of markets on Tuesday and eventually the shares tumbled 4.6%. However, excluding one-time special items, the company reported earnings of $0.03, ahead of Zacks Consensus Estimate of break-even number
• Costco Wholesale Corporation (NASDAQ: COST ) reported fourth-quarter 2012 earnings of $1.39 per share, outpacing the Zacks Consensus Estimate of $1.30
• Yum! Brands, Inc.'s (NYSE: YUM ) shares jumped 8.0% after it posted third quarter 2012 adjusted earnings of $0.99 per share, beating the Zacks Consensus Estimate of $0.97
ALCOA INC (AA): Free Stock Analysis Report
COSTCO WHOLE CP (COST): Free Stock Analysis Report
FEDEX CORP (FDX): Free Stock Analysis Report
YUM! BRANDS INC (YUM): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Brands, Inc.'s (NYSE: YUM ) shares jumped 8.0% after it posted third quarter 2012 adjusted earnings of $0.99 per share, beating the Zacks Consensus Estimate of $0.97 ALCOA INC (AA): Free Stock Analysis Report COSTCO WHOLE CP (COST): Free Stock Analysis Report FEDEX CORP (FDX): Free Stock Analysis Report YUM! • Shares of FedEx Corporation (NYSE: FDX ) jumped 5.2% after it announced cost-cutting measures and set a $1.7 billion "profitability improvement" target in the next three years • Alcoa, Inc. (NYSE: AA ) reported a third quarter loss of $0.13 per share after close of markets on Tuesday and eventually the shares tumbled 4.6%. However, excluding one-time special items, the company reported earnings of $0.03, ahead of Zacks Consensus Estimate of break-even number • Costco Wholesale Corporation (NASDAQ: COST ) reported fourth-quarter 2012 earnings of $1.39 per share, outpacing the Zacks Consensus Estimate of $1.30 • Yum!
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• Shares of FedEx Corporation (NYSE: FDX ) jumped 5.2% after it announced cost-cutting measures and set a $1.7 billion "profitability improvement" target in the next three years • Alcoa, Inc. (NYSE: AA ) reported a third quarter loss of $0.13 per share after close of markets on Tuesday and eventually the shares tumbled 4.6%. Brands, Inc.'s (NYSE: YUM ) shares jumped 8.0% after it posted third quarter 2012 adjusted earnings of $0.99 per share, beating the Zacks Consensus Estimate of $0.97 ALCOA INC (AA): Free Stock Analysis Report COSTCO WHOLE CP (COST): Free Stock Analysis Report FEDEX CORP (FDX): Free Stock Analysis Report YUM! However, excluding one-time special items, the company reported earnings of $0.03, ahead of Zacks Consensus Estimate of break-even number • Costco Wholesale Corporation (NASDAQ: COST ) reported fourth-quarter 2012 earnings of $1.39 per share, outpacing the Zacks Consensus Estimate of $1.30 • Yum!
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Brands, Inc.'s (NYSE: YUM ) shares jumped 8.0% after it posted third quarter 2012 adjusted earnings of $0.99 per share, beating the Zacks Consensus Estimate of $0.97 ALCOA INC (AA): Free Stock Analysis Report COSTCO WHOLE CP (COST): Free Stock Analysis Report FEDEX CORP (FDX): Free Stock Analysis Report YUM! • Shares of FedEx Corporation (NYSE: FDX ) jumped 5.2% after it announced cost-cutting measures and set a $1.7 billion "profitability improvement" target in the next three years • Alcoa, Inc. (NYSE: AA ) reported a third quarter loss of $0.13 per share after close of markets on Tuesday and eventually the shares tumbled 4.6%. However, excluding one-time special items, the company reported earnings of $0.03, ahead of Zacks Consensus Estimate of break-even number • Costco Wholesale Corporation (NASDAQ: COST ) reported fourth-quarter 2012 earnings of $1.39 per share, outpacing the Zacks Consensus Estimate of $1.30 • Yum!
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Brands, Inc.'s (NYSE: YUM ) shares jumped 8.0% after it posted third quarter 2012 adjusted earnings of $0.99 per share, beating the Zacks Consensus Estimate of $0.97 ALCOA INC (AA): Free Stock Analysis Report COSTCO WHOLE CP (COST): Free Stock Analysis Report FEDEX CORP (FDX): Free Stock Analysis Report YUM! The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. • Shares of FedEx Corporation (NYSE: FDX ) jumped 5.2% after it announced cost-cutting measures and set a $1.7 billion "profitability improvement" target in the next three years • Alcoa, Inc. (NYSE: AA ) reported a third quarter loss of $0.13 per share after close of markets on Tuesday and eventually the shares tumbled 4.6%.
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1498.0
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2012-10-11 00:00:00 UTC
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Stock Market News for October 11, 2012 - Market News
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AA
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https://www.nasdaq.com/articles/stock-market-news-for-october-11-2012-market-news-2012-10-11
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nan
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Alcoa's third quarter loss and its forecast of a dismal global economic situation dragged benchmarks into the red on Wednesday. Meanwhile, Chevron forecasted a "substantially lower" third-quarter profit, which further intensified the bearish mood. Separately, the U.S. Federal Reserve released its "Beige Book", which noted that the U.S. economy is advancing modestly with moderate improvement in housing and auto sales in September.
The Dow Jones Industrial Average (DJI) lost 1.0% to close the day at 13,344.97. The Standard & Poor 500 (S&P 500) slipped 0.6% to finish yesterday's trading session at 1,432.56. The tech-laden Nasdaq Composite Index slipped 0.4% to end at 3,051.78. The fear-gauge CBOE Volatility Index (VIX) declined 0.5% to settle at 16.29. Consolidated volumes on the New York Stock Exchange, American Stock Exchange and Nasdaq were roughly 5.9 billion shares, significantly lower than this year's daily average of 6.53 billion shares. Declining stocks outpaced the advancers on the NYSE; as for 60% stocks that dropped, 37% stocks moved higher.
The third-quarter earning season began with disappointing news from Alcoa Inc. (NYSE: AA ). Alcoa, U.S.'s largest aluminum producing company lost 4.6% after reporting a third-quarter loss. A slowdown in China and low demand for aluminum affected the results. Thus, the company reflected the flagging economic conditions, and that was definitely a disappointment for the markets.
Also, Chevron Corporation's (NYSE: CVX ) shares tumbled 4.2% to $112.45 after it announced that its third-quarter profit is estimated to be "significantly lower" on a sequential basis. Chevron's downward revision also brings to mind the trend of other bellwethers taking the same route. Earlier, heavyweights such as FedEx Corporation (NYSE: FDX ), Caterpillar Inc. (NYSE: CAT ) and Hewlett-Packard Company (NYSE: HPQ ) had issued warnings about upcoming earnings, indicating weak demand in Europe and China. In fact, not many analysts have a bullish view for the third quarter earnings season. According to market experts, the earnings season might not be encouraging enough to push the benchmarks upward and S&P 500 companies may fall 2.3% from last year; their first decline in three years.
Meanwhile, the Federal Reserve released its Beige Book yesterday, which noted modest improvements in auto and home sales. Consumer spending has increased marginally since the last report. According to the report U.S. economy is growing at a modest rate. This helped the benchmarks trim their initial losses to some extent.
The International Monetary Fund held its meeting in Tokyo and said immediate action should be taken to fix the European debt crisis. The IMF also said that the European Central bank may have to sell $4.5 trillion of their assets if policy makers fall short of pledges. The IMF has slashed global growth rates twice since April 2012, which is a matter of deep concern. International Monetary Fund Managing Director Christine Lagarde said Greece should be given more time to meet its budget targets. "It is sometimes better, given the circumstances…to have a bit more time," she added.
Separately, the U.S. Census Bureau announced that wholesale inventories data was in line with the consensus estimates. According to the report: "Total inventories of merchant wholesalers, except manufacturers' sales branches and offices, after adjustment for seasonal variations but not for price changes, were $487.5 billion at the end of August, up 0.5 percent (+/-0.4%) from the revised July level and were up 5.3 percent (+/-1.1%) from the August 2011 level".
Coming to the sectors, financial bellwether stocks including JPMorgan Chase & Co. (NYSE: JPM ), Citigroup Inc. (NYSE: C ), Wells Fargo & Company (NYSE: WFC ), Goldman Sachs Group, Inc. (NYSE: GS ) and PNC Financial Services (NYSE: PNC ) gained 0.9%, 1.6%, 0.4%, 0.4% and 0.2% respectively.
The energy sector had a bad run yesterday and was a major loser. The Energy Select Sector SPDR lost 1.8%. Stocks such as Chevron Corporation (NYSE: CVX ), Exxon Mobil Corporation (NYSE: XOM ), TOTAL S.A. (NYSE: TOT ), Marathon Oil Corporation (NYSE: MRO ) and ConocoPhillips (NYSE: COP ) lost 4.2%, 1.2%, 0.6%, 0.1% and 1.0% respectively.
ALCOA INC (AA): Free Stock Analysis Report
CITIGROUP INC (C): Free Stock Analysis Report
CATERPILLAR INC (CAT): Free Stock Analysis Report
CONOCOPHILLIPS (COP): Free Stock Analysis Report
CHEVRON CORP (CVX): Free Stock Analysis Report
CHEVRON CORP (CVX): Free Stock Analysis Report
FEDEX CORP (FDX): Free Stock Analysis Report
GOLDMAN SACHS (GS): Free Stock Analysis Report
HEWLETT PACKARD (HPQ): Free Stock Analysis Report
MARATHON OIL CP (MRO): Free Stock Analysis Report
PNC FINL SVC CP (PNC): Free Stock Analysis Report
TOTAL FINA SA (TOT): Free Stock Analysis Report
WELLS FARGO-NEW (WFC): Free Stock Analysis Report
EXXON MOBIL CRP (XOM): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The third-quarter earning season began with disappointing news from Alcoa Inc. (NYSE: AA ). ALCOA INC (AA): Free Stock Analysis Report CITIGROUP INC (C): Free Stock Analysis Report CATERPILLAR INC (CAT): Free Stock Analysis Report CONOCOPHILLIPS (COP): Free Stock Analysis Report CHEVRON CORP (CVX): Free Stock Analysis Report CHEVRON CORP (CVX): Free Stock Analysis Report FEDEX CORP (FDX): Free Stock Analysis Report GOLDMAN SACHS (GS): Free Stock Analysis Report HEWLETT PACKARD (HPQ): Free Stock Analysis Report MARATHON OIL CP (MRO): Free Stock Analysis Report PNC FINL SVC CP (PNC): Free Stock Analysis Report TOTAL FINA SA (TOT): Free Stock Analysis Report WELLS FARGO-NEW (WFC): Free Stock Analysis Report EXXON MOBIL CRP (XOM): Free Stock Analysis Report To read this article on Zacks.com click here. Alcoa's third quarter loss and its forecast of a dismal global economic situation dragged benchmarks into the red on Wednesday.
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ALCOA INC (AA): Free Stock Analysis Report CITIGROUP INC (C): Free Stock Analysis Report CATERPILLAR INC (CAT): Free Stock Analysis Report CONOCOPHILLIPS (COP): Free Stock Analysis Report CHEVRON CORP (CVX): Free Stock Analysis Report CHEVRON CORP (CVX): Free Stock Analysis Report FEDEX CORP (FDX): Free Stock Analysis Report GOLDMAN SACHS (GS): Free Stock Analysis Report HEWLETT PACKARD (HPQ): Free Stock Analysis Report MARATHON OIL CP (MRO): Free Stock Analysis Report PNC FINL SVC CP (PNC): Free Stock Analysis Report TOTAL FINA SA (TOT): Free Stock Analysis Report WELLS FARGO-NEW (WFC): Free Stock Analysis Report EXXON MOBIL CRP (XOM): Free Stock Analysis Report To read this article on Zacks.com click here. The third-quarter earning season began with disappointing news from Alcoa Inc. (NYSE: AA ). Coming to the sectors, financial bellwether stocks including JPMorgan Chase & Co. (NYSE: JPM ), Citigroup Inc. (NYSE: C ), Wells Fargo & Company (NYSE: WFC ), Goldman Sachs Group, Inc. (NYSE: GS ) and PNC Financial Services (NYSE: PNC ) gained 0.9%, 1.6%, 0.4%, 0.4% and 0.2% respectively.
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ALCOA INC (AA): Free Stock Analysis Report CITIGROUP INC (C): Free Stock Analysis Report CATERPILLAR INC (CAT): Free Stock Analysis Report CONOCOPHILLIPS (COP): Free Stock Analysis Report CHEVRON CORP (CVX): Free Stock Analysis Report CHEVRON CORP (CVX): Free Stock Analysis Report FEDEX CORP (FDX): Free Stock Analysis Report GOLDMAN SACHS (GS): Free Stock Analysis Report HEWLETT PACKARD (HPQ): Free Stock Analysis Report MARATHON OIL CP (MRO): Free Stock Analysis Report PNC FINL SVC CP (PNC): Free Stock Analysis Report TOTAL FINA SA (TOT): Free Stock Analysis Report WELLS FARGO-NEW (WFC): Free Stock Analysis Report EXXON MOBIL CRP (XOM): Free Stock Analysis Report To read this article on Zacks.com click here. The third-quarter earning season began with disappointing news from Alcoa Inc. (NYSE: AA ). Coming to the sectors, financial bellwether stocks including JPMorgan Chase & Co. (NYSE: JPM ), Citigroup Inc. (NYSE: C ), Wells Fargo & Company (NYSE: WFC ), Goldman Sachs Group, Inc. (NYSE: GS ) and PNC Financial Services (NYSE: PNC ) gained 0.9%, 1.6%, 0.4%, 0.4% and 0.2% respectively.
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The third-quarter earning season began with disappointing news from Alcoa Inc. (NYSE: AA ). ALCOA INC (AA): Free Stock Analysis Report CITIGROUP INC (C): Free Stock Analysis Report CATERPILLAR INC (CAT): Free Stock Analysis Report CONOCOPHILLIPS (COP): Free Stock Analysis Report CHEVRON CORP (CVX): Free Stock Analysis Report CHEVRON CORP (CVX): Free Stock Analysis Report FEDEX CORP (FDX): Free Stock Analysis Report GOLDMAN SACHS (GS): Free Stock Analysis Report HEWLETT PACKARD (HPQ): Free Stock Analysis Report MARATHON OIL CP (MRO): Free Stock Analysis Report PNC FINL SVC CP (PNC): Free Stock Analysis Report TOTAL FINA SA (TOT): Free Stock Analysis Report WELLS FARGO-NEW (WFC): Free Stock Analysis Report EXXON MOBIL CRP (XOM): Free Stock Analysis Report To read this article on Zacks.com click here. Alcoa, U.S.'s largest aluminum producing company lost 4.6% after reporting a third-quarter loss.
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1499.0
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2012-10-11 00:00:00 UTC
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Jobless Claims, Spain News Spur Market - Analyst Blog
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AA
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https://www.nasdaq.com/articles/jobless-claims-spain-news-spur-market-analyst-blog-2012-10-11
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nan
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A surprisingly strong Jobless Claims report and growing optimism about Spain will likely be the key drivers of today's market action, distracting market participants from earnings-related worries.
The market appears to be seeing a silver lining to the debt rating downgrade of Spain to one notch above the junk category in the hope that the move will force the Spanish government's hand in asking for a bailout. It is far from clear at this stage whether this expectation will pan out, but it is nevertheless adding to market optimism on the European front.
Europe aside, we got an unusually sharp drop in weekly Jobless Claims data this morning, which will likely add to the growing optimism on the U.S. labor market front. The jobless claims report showed the big drop in initial claims to 339K, taking this key measure of unemployment to its lowest level in almost four years. The four-week average, which tends to reduce volatility in the weekly measure, dropped by 11.6K to 364K, the lowest level in six months. The Jobless Claims report adds to the strong gains in the unemployment rate in last week's September non-farm payroll report that brought the jobless rate to less than 8% for the first time since 2009.
Offsetting these favorable reports about the domestic and European scene is the uncertain corporate earnings picture coming out of the third quarter reporting season. While the reporting season has gotten off to a weaker start relative to the previous quarter, the final tally of companies beating third quarter earnings expectations will likely be not much different from what we have been seeing in recent quarters. This is a testament to management teams' impressive track record of under-promising and over-delivering.
But more important than what proportion of companies beat third quarter expectations will be the quality of guidance of fourth quarter and beyond, as this will determine how much earnings estimates for the coming quarters need to come down. Given what we have heard from Alcoa ( AA ), FedEx ( FDX ) and Nike ( NKE ) on their earnings calls thus far and pre-announcements from the likes of Intel ( INTC ) and Cummins ( CMI ), the overall trend on the guidance front will likely be to the downside. We will know more in the coming days as the earnings season unfolds.
ALCOA INC (AA): Free Stock Analysis Report
CUMMINS INC (CMI): Free Stock Analysis Report
FEDEX CORP (FDX): Free Stock Analysis Report
INTEL CORP (INTC): Free Stock Analysis Report
NIKE INC-B (NKE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Given what we have heard from Alcoa ( AA ), FedEx ( FDX ) and Nike ( NKE ) on their earnings calls thus far and pre-announcements from the likes of Intel ( INTC ) and Cummins ( CMI ), the overall trend on the guidance front will likely be to the downside. ALCOA INC (AA): Free Stock Analysis Report CUMMINS INC (CMI): Free Stock Analysis Report FEDEX CORP (FDX): Free Stock Analysis Report INTEL CORP (INTC): Free Stock Analysis Report NIKE INC-B (NKE): Free Stock Analysis Report To read this article on Zacks.com click here. The market appears to be seeing a silver lining to the debt rating downgrade of Spain to one notch above the junk category in the hope that the move will force the Spanish government's hand in asking for a bailout.
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ALCOA INC (AA): Free Stock Analysis Report CUMMINS INC (CMI): Free Stock Analysis Report FEDEX CORP (FDX): Free Stock Analysis Report INTEL CORP (INTC): Free Stock Analysis Report NIKE INC-B (NKE): Free Stock Analysis Report To read this article on Zacks.com click here. Given what we have heard from Alcoa ( AA ), FedEx ( FDX ) and Nike ( NKE ) on their earnings calls thus far and pre-announcements from the likes of Intel ( INTC ) and Cummins ( CMI ), the overall trend on the guidance front will likely be to the downside. A surprisingly strong Jobless Claims report and growing optimism about Spain will likely be the key drivers of today's market action, distracting market participants from earnings-related worries.
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ALCOA INC (AA): Free Stock Analysis Report CUMMINS INC (CMI): Free Stock Analysis Report FEDEX CORP (FDX): Free Stock Analysis Report INTEL CORP (INTC): Free Stock Analysis Report NIKE INC-B (NKE): Free Stock Analysis Report To read this article on Zacks.com click here. Given what we have heard from Alcoa ( AA ), FedEx ( FDX ) and Nike ( NKE ) on their earnings calls thus far and pre-announcements from the likes of Intel ( INTC ) and Cummins ( CMI ), the overall trend on the guidance front will likely be to the downside. The Jobless Claims report adds to the strong gains in the unemployment rate in last week's September non-farm payroll report that brought the jobless rate to less than 8% for the first time since 2009.
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Given what we have heard from Alcoa ( AA ), FedEx ( FDX ) and Nike ( NKE ) on their earnings calls thus far and pre-announcements from the likes of Intel ( INTC ) and Cummins ( CMI ), the overall trend on the guidance front will likely be to the downside. ALCOA INC (AA): Free Stock Analysis Report CUMMINS INC (CMI): Free Stock Analysis Report FEDEX CORP (FDX): Free Stock Analysis Report INTEL CORP (INTC): Free Stock Analysis Report NIKE INC-B (NKE): Free Stock Analysis Report To read this article on Zacks.com click here. A surprisingly strong Jobless Claims report and growing optimism about Spain will likely be the key drivers of today's market action, distracting market participants from earnings-related worries.
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