Earnings

 

 

by Larry Levin

Monday was another very slow, low volume, and no volatility “trading” (if you can call it that) day.  It was so slow that the day’s range was less than Friday’s range, otherwise known as an “inside day.”  The good news, however, is that this sort of situation can often lead to a nice range extension the next day.
 
It looks like the market was slow in part due to the release of the Alcoa (AA) earnings after the close.  
 
EPS reports adjusted $0.21 on expectation of $0.19.
Revenues of $5.65 billion miss expectations of $5.75 billion.
AA sees global aluminum growth rate 12% for 2011.
AA sees global aluminum demand doubling by 2020.
Cash on hand of USD 1.5bln at quarter end.
Improved earnings were driven by higher pricing and continued strengthening in most markets and improved productivity.
Quarterly results were offset somewhat by a weaker USD and higher energy and raw material costs.
CEO says expects Chinese demand to slow.
 
Although the revenue missed and AA believes Chinese demand will slow somewhat, the report was good.

Trade Date: 1/10/11
E-Mini S&P Trades*
(before fees and commissions):

No “Secrets” filled today.  Algorithm positions (4)  “Reading the Tape” positions (0) …combined Secret’s, Algo, & “Reading the Tape” total… -1.75

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