Last week, Alcoa (AA) surprised the market on Wednesday by beating expectations with an adjusted income $39 million or $0.04 per share for Q3 2009. Improvements were from cost cutting and an increase in aluminum prices. Stock price was up 6% on earnings but fell back to it’s price before earnings at $14.25. Not a good sign.
Other big leaders are expected to post good earnings but if they don’t please Wall St., expect a big reversal in the current overbought market.
Key Earnings:
10/14/09 – JPMorgan Chase (JPM)
10/15/09 – Citigroup (C)
10/15/09 – Goldman Sachs (GS)
10/15/09 - Intel (INTC)
10/16/98 – Bank of America (BAC)
Key Economic Report Dates:
| DATE | REPORT | FORECAST | PREVIOUS |
|---|---|---|---|
| Oct. 14 | Retail sales | -2.3% | 2.7% |
| Oct. 14 | Retail sales ex-autos | 0.3% | 1.1% |
| Oct. 14 | Import price index | 0.3% | 2.0% |
| Oct. 14 | Inventories | -1.0% | -1.0% |
| Oct. 15 | Jobless claims | 513,000 | 521,000 |
| Oct. 15 | Consumer price index | 0.1% | 0.4% |
| Oct. 15 | Core CPI | 0.1% | 0.1% |
| Oct. 15 | Philly Fed | 12.2 | 14.1 |
| Oct. 16 | Industrial production | 0.4% | 0.8% |
| Oct. 16 | Consumer sentiment | 72.3 | 73.5 |
For those who are into technical analysis, here are some chart readings,
According to dshort.com, which tracks P/E10, we see that we are in slightly overvalued territory.
