The S&P 500
(INDEXSP:.INX) snapped a two-day losing streak as industrial and cyclical stocks led the market slightly higher.
Yesterday after the close, aluminum giant Alcoa
(NYSE:AA) officially kicked off earnings season, delivering in-line earnings but better-than-expected revenues. The company also said it expects global aluminum demand to grow 7% in 2013, an improvement from the 6% growth seen in 2012. Alcoa shares rose only modestly, but note that the stock had already rallied 7% in the New Year.
The positive outlook from Alcoa was interpreted as bullish for the broader economy, buoying economically sensitive sectors like the aforementioned industrials and cyclicals, with stocks like United Technologies
(NYSE:UTX) and Boeing
(NYSE:BA) putting in strong performances.
In stock news, Facebook
(NASDAQ:FB) was a standout performer after the company announced that it would host an event on January 15, and the stock broke through the $30 level with authority.
On the negative side, financials took a bit of a hit after Credit Suisse downgraded Bank of America
(NYSE:BAC) to Neutral from Outperform on valuation. There was also significant volatility in multi-level marketing company Herbalife
(NYSE:HLF), which skyrocketed after hedge fund Third Point LLC announced an 8.24% stake in the company before giving back most of the gains intraday.
Tomorrow's Financial Outlook
On Thursday, we will see earnings reports from Supervalu
(NYSE:SVU), MSC Industrial
(NYSE:SNX), and Xyratex
In economics, jobless claims, wholesale inventories, and natural gas inventories are on the calendar. On the international front, the ECB and Bank of England will announce their rate decisions.
No positions in stocks mentioned.
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