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Market Tips: Top Line Is the Key to Continuing Rally

CNBC.com
Tuesday, 12 Jan 2010 | 6:22 AM ET

Global stocks were lower on Tuesday as investors digested early results from the fourth-quarter earnings season. U.S. aluminum producer Alcoa reported earnings below Wall Street estimates after the closing bell on Monday, causing investors to worry if this could be the theme for the season.

Experts told CNBC that a pick up in revenue during the earnings season is vital to keep the rally on track.

Revenue Growth is Key This Earnings Season

We need to see revenue pick up during this U.S. earnings season in order to keep the markets heading higher, says Vasu Menon, VP of wealth management at OCBC Bank.

US Fundamentals Remain Weak

Discussing his outlook for the U.S. earnings season, Len Blum, managing director at Westwood Capital says the numbers will be up, coming from a very low base and cautions that U.S. fundamentals remain weak.

Better Earnings Already Priced In

Russ Koesterich, head of investment strategy at Blackrock says Alcoa's earnings could be a wake up call. He tells CNBC that companies may have difficulty beating forecast after the first quarter, as overall expectations for 2010 are aggressive.

Alcoa Kicks Off US Earning Season

Alcoa kicked off the reporting season in the U.S. with stronger-than-expected revenue. But Geoff Beeston, investment advisor at Lonsec tells CNBC that this does not constitute a great start to the U.S. earnings season.

Overall US Recovery Unlikely

An overall recovery in the U.S. is unlikely, says Jason Anderson, senior economist at BIS Shrapnel, Sydney.

Don't Expect Sharp USD Rebound in Near Term

Right now, it is difficult to expect a sharp rebound in the greenback, says Thio Chin Loo, senior currency strategist at BNP Paribas.

Dollar to Be Under Pressure in H1

The dollar will probably be under pressure in the first-half, believes John Kyriakopoulos, head of currency strategy at NAB Global Markets Research.

Upbeat on Asian Currencies

Asian currencies will continue to chalk up gains this year, believes Philip Wee, senior currency economist at DBS Bank. He tells CNBC which Asian currencies will lead gains in the region.

Expect More Volatility in China Markets

China's move to approve stock index futures, margin trading and short selling may bring more volatility to the markets, says Marco Mak, analyst at Tai Fook Securities.

HSI to Near 23,000 by End-Jan.

Vicks Poon, head of investment advisory at Fubon Bank, sees the Hang Seng Index rising towards 23,000 points by the end of January.

China's Insatiable Demand for Oil

China's demand for oil is helping to support crude prices, believes John Kingston, global director of oil at Platts.

Positive on Commodities

There is no bubble forming in the commodities space, in fact, Vasu Menon, VP of wealth management at OCBC Bank, sees prices heading higher over the medium term. He reveals how he is cashing in on this, in this installment of "Protect Your Wealth."

Gold — Not Such a Good Inflation Hedge After All?

Gold prices could pull back to as low as $700 in the long term, warns Mathew Hodge, resources analyst at Morningstar. He tells CNBC why he does not think the precious metal makes a good inflation hedge.

Gold's Run Up

Expect gold to maintain its run, says Matt Zeman, trader at LaSalle Futures Group, speaking to CNBC.

Contact Europe: Economy

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