ALCO(WHO!!)A

09 Oct

ALCO(WHO!!)A

Alcoa reported its Q3 earnings yesterday with a surprise profit of 4c /share as opposed to expectations of loss of 9c /share kicking off the earnings season in US on a positive note.

Analysts are expecting a positive earnings season and believe this will keep a floor under the markets, even propel DOW towards that 10000 mark despite poor economic data.

Coming out of a recession, estimates generally are very conservative hence results, just meeting expectation or only slightly above them, can be very well received by the market.

Questions is that with stock markets supposedly being forward looking and a 15% gain in the last quarter, is a lot of the good earnings news already baked in the prices??

Well, whether its the falling dollar, top-line earnings surprise or technicals, we at AQUISS recommend not fighting the tape!



a top-down image of a golden Japanese Koi fish