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T3's Take 3: Alcoa Kicks Off Earnings Season With a Whiff


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

Today on T3 Live

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Alcoa Misses 

Earnings season kicked off yesterday as Alcoa (AA) released its earnings report. The report fell short of investor expectations due to low aluminum prices and weakness in China. Alcoa also lowered its 2015 aluminum market forecasts.

The company reported earnings of $0.07 per share, missing the consensus. by 6 cents. Revenue was $5.57 billion, missing the $5.65 billion for which Wall Street was looking.

Alcoa shares fell 6.8% to $10.26 today.

CEO Klaus Kleinfeld reiterated the importance of the company's split, which will help it focus on cutting costs to offset the drop in aluminum prices.

US Markets

Initially, US equities shook off Alcoa's weakness and started higher before making multiple up and down moves throughout the day.

The S&P 500 ultimately finished fractionally higher at 2014.90. 

Transportation, cybersecurity, and healthcare stocks saw solid gains. The energy sector saw profit taking as oil prices drifted down throughout the day.

The dollar fell against the euro, pound, Australian and Canadian dollar but gained slightly against the yen.

World Equity Market

Asian equities extended yesterday's rally, with the Nikkei finishing up 1.6% and China's Shanghai Composite rallying 1.3%.

Europe finished the week higher as well. The German DAX rallied 1%, while the French CAC inched up 0.5%. Shares of mining company, Glencore, surged 7% after announcing a cut in zinc production to compensate for lower commodity prices. Fellow miner Boliden soared 12% after JP Morgan (JPM) upgraded the stock from neutral to overweight. Other mining companies rallied in concert.

Volkswagen (VW) shares closed up 3% after the company's CEO stated that cheating on emissions tests was not a corporate decision, but one done by individuals.  

Monday's Financial Outlook

No major US economic data will be released on Monday.

Overseas, on Sunday, China aggregate financing and New Yuan loans will be released. On Monday, the Bank of Japan will release its minutes.

Infosys (INFY) will release earnings before the open on Monday.
No positions in stocks mentioned.
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