As I outlined in January, industrial bellwether Alcoa (AA) is starting to signal better quarters ahead for the U.S. economy. Alcoa's sales will likely increase 10% to 13% in 2011, after a 14% surge in 2010, the latter albeit against an easy comparison.

Further, U.S. auto sales are likely to rise 10% to 13% this year, and the housing sector could squeeze out a modest uptrend in new home sales, if a better second-half performance materializes, as expected. This is all good news for aluminum sales and AA. Another positive: The price of aluminum should rise in 2011 on adequate global demand and falling inventories.

Continue reading As Alcoa Goes, So Goes the U.S. Recovery

As Alcoa Goes, So Goes the U.S. Recovery originally appeared on BloggingStocks on Wed, 23 Mar 2011 10:00:00 EST. Please see our terms for use of feeds.

Over the years there have been some strange goings on in the commodity markets. One episode that comes to mind is the attempt by the Hunt brothers of Texas to corner the silver market in the 1970s.

Now we have another strange occurrence. The Financial Times reported that one trader holds 80% to 90% of the copper in the London Metals Exchange (LME) warehouses, valued at about $3 billion. We do know that JPMorgan Chase (JPM) is a big player in the copper market. Whether JPMorgan increased its holdings is not known.

Continue reading Single Trader Dominates Copper in London Metals Exchange

Single Trader Dominates Copper in London Metals Exchange originally appeared on BloggingStocks on Fri, 24 Dec 2010 11:00:00 EST. Please see our terms for use of feeds.

I last discussed aluminum company Alcoa (AA) back in July. At that time, its price was roughly around the $11 mark. Thursday, the stock closed the regular session at $12.20. During the extended-hours trading that followed, the stock rose 2.8% to $12.54 in reaction to the release of the third-quarter report. The 52-week low for the shares is $9.81, so they're comfortably above that level. It's time for long-term investors and short-term participants to decide how the stock looks now that the numbers are out.

Let's first go to the one-year chart. Such a graphic doesn't make things easy, does it? The overall pullback makes the stock appear weak, but I nevertheless see an equity that wants to clear some more resistance levels if only the rest of the market will help it out.

Continue reading Alcoa Earnings Defeat Estimates in Third Quarter

Alcoa Earnings Defeat Estimates in Third Quarter originally appeared on BloggingStocks on Fri, 08 Oct 2010 09:20:00 EST. Please see our terms for use of feeds.

Continue reading Are Oil, Copper, Aluminum Draw-Downs Sending an Economic Signal?

Are Oil, Copper, Aluminum Draw-Downs Sending an Economic Signal? originally appeared on BloggingStocks on Fri, 16 Jul 2010 16:40:00 EST. Please see our terms for use of feeds.

When Alcoa (AA) issued its first-quarter earnings report back in April, I wasn't impressed. I felt the shares weren't a buy, and I wanted a pullback. Well, we got one. In fact, the stock closed Monday's regular session at $10.87, not far from the 52-week low of $9.04. This was right before a new quarterly report was posted.

So should an investor consider Alcoa a potential buy? I definitely find the shares more attractive now than I did a few months ago. Further, the stock rose 3.5% in Monday's after-hours session.

Continue reading Alcoa Kicks Off Earnings Season with Stronger-Than-Expected Growth

Alcoa Kicks Off Earnings Season with Stronger-Than-Expected Growth originally appeared on BloggingStocks on Tue, 13 Jul 2010 09:00:00 EST. Please see our terms for use of feeds.

Continue reading Commodity Metals Decline on Investor Emotions

Commodity Metals Decline on Investor Emotions originally appeared on BloggingStocks on Wed, 26 May 2010 15:00:00 EST. Please see our terms for use of feeds.

Shares of aluminum entity Alcoa (AA) are not acting as a catalyst for the market today. If anything, they are probably bringing the mood of the traders in a downward direction. Pity, since the Dow hit 11,000 and all.

At the time of this writing, shares of the company were off by roughly 3%. Volume was high relative to the norm. The company's first-quarter earnings report is the cause of the selling interest. Of course, a sell-off can oftentimes be a nice opportunity for investors to get in on a stock; you always want to buy low and sell high, correct?

Continue reading Alcoa: Not a Buy

Alcoa: Not a Buy originally appeared on BloggingStocks on Tue, 13 Apr 2010 15:40:00 EST. Please see our terms for use of feeds.

Industrial metals like copper, aluminum and iron ore are basic to economic development. China, with its explosive growth needs these metals.

Word of this has spread around the world, bringing speculators into the markets. China is the world's biggest consumer of aluminum and copper. Armed with that knowledge, speculators drove the price of copper up 48% in the second half of 2009.

Continue reading Speculation Is Spurring Price Jumps in Industrial Metals

Speculation Is Spurring Price Jumps in Industrial Metals originally appeared on BloggingStocks on Mon, 01 Mar 2010 15:30:00 EST. Please see our terms for use of feeds.

Continue reading Alcoa: Pull-Back Is Buy Opportunity

Alcoa: Pull-Back Is Buy Opportunity originally appeared on BloggingStocks on Mon, 25 Jan 2010 09:30:00 EST. Please see our terms for use of feeds.

Driving the selling pressure was the earnings report, of course. For the fourth quarter, sales decreased 4% compared to the year-ago period. On a reported basis, the company lost 27 cents per share from continuing operations. This was a big improvement over the previous loss of $1.16 per share. Unfortunately, according to Bloomberg, the adjusted profit of a penny per share missed projections by 5 cents.

Continue reading Alcoa Down on Q4 Results -- What Should Investors Do Now?

Alcoa Down on Q4 Results -- What Should Investors Do Now? originally appeared on BloggingStocks on Tue, 12 Jan 2010 14:40:00 EST. Please see our terms for use of feeds.

The earnings season is going to kick off on Monday when aluminum manufacturer Alcoa (AA) reports its fourth quarter numbers following the market close.

Headed into Monday's report, analysts are expecting to see the company posting its second positive quarter in a row after posting losses for three consecutive quarters. Analysts are expecting earnings of 6 cents per share during the quarter.

Continue reading Alcoa Fourth-Quarter Earnings Preview

Alcoa Fourth-Quarter Earnings Preview originally appeared on BloggingStocks on Fri, 08 Jan 2010 16:45:00 EST. Please see our terms for use of feeds.

From the U.S. to Europe, to Asia, cold weather is wreaking havoc on travel and agriculture. The recent cold snap is is driving the price of oil and agricultural commodities to new highs for the year.

Demand for crude oil is up, pushing prices to a 15-month high. On the New York Mercantile Exchange, oil traded at $81.77 per barrel. Natural gas demand has climbed sharply in China, with prices up as much as 40% in some areas.

Continue reading Cold Weather Is Wreaking Havoc Across the Northern Hemisphere

Cold Weather Is Wreaking Havoc Across the Northern Hemisphere originally appeared on BloggingStocks on Wed, 06 Jan 2010 11:40:00 EST. Please see our terms for use of feeds.

Continue reading With solar overheated, here are two indirect ways to play climate change

With solar overheated, here are two indirect ways to play climate change originally appeared on BloggingStocks on Thu, 15 Oct 2009 09:50:00 EST. Please see our terms for use of feeds.

Alcoa

Continue reading Alcoa posts surprising third quarter profit

Alcoa posts surprising third quarter profit originally appeared on BloggingStocks on Wed, 07 Oct 2009 18:30:00 EST. Please see our terms for use of feeds.

Within the past year, the stock price of Alcoa (NYSE: AA), a mega aluminum producer, has gone from a high of $44.78 to a low of $4.97. Although, during the past few weeks, things have perked up. In fact, yesterday Alcoa's stock price surged 17% to $6.40.

The reason? Alcoa was able to drum up interest in its recent financing. In all, the company raised $1.3 billion in stock and convertible notes. Keep in mind that Alcoa expected to raise $1.1 billion.

In the aftermarket, the trading of the new securities was robust -- which certainly delighted traders.

Continue reading Alcoa gets $1.3 billion in relief

Alcoa gets $1.3 billion in relief originally appeared on BloggingStocks on Fri, 20 Mar 2009 11:10:00 EST. Please see our terms for use of feeds.

This post is part of a special annual report -- Top Stock Picks '09 -- in which TheStockAdvisors.com asked 75 leading newsletter advisors to select their favorite investment for the new year.

Growth stock expert Mark Skousen looks to the commodity sector for a favorite idea for 2009. In his specialty advisory service, The Turnaround Trader, he explains, "While the market continues to be volatile, we believe Freeport McMoRan (NYSE: FCX) offers an opportunity for profit."

Skousen continues, "Industrial commodities have been beaten down in the face of a deep, global recession. Aluminum was $1.50 a pound a year ago, and is now down to 66 cents. Copper was more than $4 a pound last year, and recently fell to $1.40.

"But the outlook for commodities is changing quickly with all the talk of bailouts, stimulus, and easy money.

"Aluminum, copper, and other base metals have risen recently on the news that President-elect Barack Obama has pledged 'substantial' spending to fix and add buildings, roads and bridges as a way to revive the economy.

"And then there's China. The world's largest emerging market recently committed to stimulating domestic growth, and announced plans to purchase 1 million tons of base metal for about $3 billion. China's massive stimulus plan, combined with Obama's, could be enough to reignite the commodities boom.

Continue reading Top Stock Picks '09: Freeport McMoRan (FCX)

Top Stock Picks '09: Freeport McMoRan (FCX) originally appeared on BloggingStocks on Tue, 06 Jan 2009 14:00:00 EST. Please see our terms for use of feeds.

Alcoa (AA) to open lower following weak earnings originally appeared on BloggingStocks on Wed, 08 Oct 2008 08:45:00 EST. Please see our terms for use of feeds.

As the second half of the year begins, the bear market has nervous investors looking for any sign of a shift in the direction of the market. When the new earnings seasons kicks off Tuesday, Alcoa Inc.'s (NYSE: AA) second-quarter results may offer the first glimpse of what to expect going forward.

Pittsburgh-based Alcoa has missed earnings estimates in just two out of the past five quarters. When the leading aluminum producer reported first-quarter results back in March, its net income of 44 cents per share fell short of the consensus of analysts surveyed by Thomson Financial by four cents, and were down from 79 cents per share in the same quarter of 2007. For this current quarter, analysts expect earnings of 68 cents per share on $7.4 billion in revenue.

In recent news, power supply issues led Alcoa to idle its Rockdale, Tex., facility. The company announced a deal for bauxite mining and alumina processing in Vietnam. Alcoa was named one of the world's most ethical companies and recognized for the best safety performance in its industry. And back in early May, Klaus Kleinfield became Alcoa's president and CEO. For analyst upgrades and downgrades, as well as other news that could influence Alcoa's results, see BloggingStocks' Alcoa coverage.

Alcoa's long-term earnings per share growth forecast is 21.6%, which is less than the metals and mining industry average but better than the S&P 500. The consensus recommendation from analysts is to buy Alcoa, and has been for more than 90 days. The share price has been falling from a recent high of $44. 77 in mid May, and closed at $32.78 on Friday. Shares are down 10.3% year to date.

Bellwether General Electric (NYSE: GE) also reports later in the week, and may also help set the tone for the quarter and the rest of the year.

Visit AOL Money & Finance for more earnings coverage.

Alcoa Q2 results to set the tone for the second half? originally appeared on BloggingStocks on Mon, 07 Jul 2008 08:26:00 EST. Please see our terms for use of feeds.

Continue reading With Reliance Steel, customizing is the key

With Reliance Steel, customizing is the key originally appeared on BloggingStocks on Mon, 19 May 2008 18:15:00 EST. Please see our terms for use of feeds.

Continue reading Alcoa sells packaging/consumer unit to Rank Group for $2.7 billion

Alcoa sells packaging/consumer unit to Rank Group for $2.7 billion originally appeared on BloggingStocks on Wed, 26 Dec 2007 15:52:00 EST. Please see our terms for use of feeds.