The Bulls Clear a Key Hurdle Right as Earnings Season Begins
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Well, as you probably already heard,
Alcoa (AA) posted mixed results. The operating profit of $0.07 per share was better than the $0.06 analysts were expecting, and much better than the break-even from a year ago. Sales were down a bit, however. Traders are responding favorably to the news, as they had baked in weaker results.
As I mentioned to you already, Alcoa's numbers aren't a harbinger of what to expect for the rest of earnings season. Enough people think Alcoa's results matter enough, however, that they'll turn them into something meaningful. You have to be aware of that reality, but don't expect the impact to linger. We'll stay focused on harder-hitting things, like a new trading idea. More on that in a second. Let's poke and prod today's market action first.
