Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Alcoa Posts Big Revenue Increase, Japan Seeks to Devalue Currency

By

Today's financial recap and tomorrow's financial outlook.

PrintPRINT
The headline story for early trading was the slight declines in European economic data. But as the day's trading opened, the market turned quickly negative. One catalyst for the downturn was Investor Business Daily and TechnoMetrica's gauge of Economic Optimism. While the index rose last month to 46.5 from 45.1 the month prior, it was below analyst expectations of 47.3 this month.

Pre-market, the eurozone released retail sales and unemployment figures from the month of November. Retail sales rose 0.1% on a month-to-month basis, up from the prior month's decline of 0.7%, but a bit below the 0.3% economist estimate. Euro-wide unemployment rose to 11.8% from the prior month's 11.7%, inline with the estimate of 11.8%. Lastly, Germany released factory orders from the month of December. The release showed a decline of 1.8% from November's jump of 3.8% and a bit below the -1.4% estimate.

In Japan, Finance Minister Taro Aso stated that Japan would seek to purchase European sovereign debt and debt of the region's bailout fund, the European Stability Mechanism (ESM), with the country's foreign exchange reserves in order to reduce the value of the Japanese yen. Also during the day was a release from the Nikkei newswire stating that the Bank of Japan would begin targeting 2% inflation, up from its current target of 1%. However, it is worth noting that this was not the first mention of such a target, so there was little to no market reaction.

Aluminum manufacturer Alcoa (NYSEAA) reported earnings after the close. Typically viewed as the start of the quarterly earnings cycle, the company reported earnings-per-share of $0.06, which was inline with estimates, but beat handily on revenues at $5.90 billion versus the $5.60 billion estimate. The stock rose 2% or more in post-market trading. Before market open, Monsanto (NYSE:MON) reported a much better-than-expected quarter. Earnings per share came in at $0.62, better than the $0.36 estimate, and revenues also beat at $2.94 billion versus the $2.64 billion estimate. Forward guidance for the year was also raised. Monsanto finished up 2.63% on the day.

Tomorrow's Financial Outlook

Tomorrow will be void of any economic releases in the US, but busy elsewhere. China will release its monthly trade balance from December, with exports expected to rise markedly from the month prior. This should be a big moment for Chinese stocks, which have gained 16% since the beginning of December. Last week, preliminary Chinese economic data showed stabilization after climbing over the prior two months.

Also on the global slate are Australian retail sales and German industrial production.

Earnings season will continue with Texas Industries (NYSE:TXI) and Constellation Brands (NYSE:STZ) tomorrow.

Twitter: @Minyanville

Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
< Previous
  • 1
Next >
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

PrintPRINT
 
Featured Videos

WHAT'S POPULAR IN THE VILLE