GO
Loading...

Unlike Past, Alcoa Results Could Be Market Moving

Monday, 9 Jul 2012 | 12:43 PM ET

Typically pros say you won’t learn much from Alcoa earnings. But not this time.

Alcoa releases results on Monday after the bell, and top trader Stephanie Link, director of research at TheStreet, says investors can extrapolate a great deal of important information from what Alcoa says.

FMHR Preview on Earnings, Obama
The FMHR crew offers a quick glimpse of earnings and President Barack Obama's remarks on taxes. CNBC's Eamon Javers also offers reaction.

“We’re going to learn a lot," she insists on Fast Money's Halftime Report. "They have exposure to trucks, autos, aviation and packaging. Based on what they say you can make derivative calls and play stocks accordingly."

In other words, Link sees Alcoa as an early read on end market demand. And with the financial woes of Europe looming over the market as well as a potential slowdown in China, Alcoa earnings should provide a read into just how much of a drag to anticipate.

“They will set up the global picture into earnings season,” Links says.

According to Citi analyst Brain Yu, there could be reason to feel optimistic.

"In the downstream we think Alcoa is doing pretty well," he says. "We're expecting a pick up in cyclicals and... their aerospace business looks pretty strong," he says.

And if you’re looking for plays on Alcoa directly, Fast trader Jon Najarian, co-founder of OptionMonster, says the options activity has been relatively bullish. “The bet is the stock drifts higher over the next two weeks,” he reveals.

DON'T MISS: Seeking Return: Fast Money's Top Div Yielders

Posted by CNBC's Lee Brodie

______________________________________________________
Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment, but not have it published on our Web site, send those e-mails to fastmoney@cnbc.com.



|
Trader disclosure: On July 9, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Joe Terranova is long VRTS; Joe Terranova is long MCD; Joe Terranova is long PNC; Joe Terranova is long USB; Joe Terranova is long TCBI; Joe Terranova is long SBUX; Joe Terranova is long MNST; Joe Terranova is long NKE; Joe Terranova is long UPL; Joe Terranova is long NXPI; Joe Terranova is long LPX; Joe Terranova is long WFM; Joe Terranova is long APPL; Joe Terranova is long EMC; Stephanie Link is long JPM; Stephanie Link is long DD; Simon Baker is funds long ABT; Simon Baker is funds long GE; Simon Baker is funds long HD; Simon Baker is funds long MSFT; Simon Baker is funds long NKE; Simon Baker is funds long PEP; Simon Baker is funds long CRM; Simon Baker is funds long SLB; Simon Baker is funds long XHB; Simon Baker is funds long STI; Simon Baker is funds long V; Simon Baker is funds long DIS; Simon Baker is funds long WFC

For Adam Parker
Morgan Stanley is not acting as a municipal advisor and the opinions or views contained herein are not intended to be, and do not constitute, advice within the meaning of Section 975 of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

For Nicole Miller Regan
The following companies have been investment banking clients of Piper Jaffray during the past 12 months: BBRG
The following companies have been investment banking clients of Piper Jaffray during the past 12 months: GMCR
The following companies have been investment banking clients of Piper Jaffray during the past 12 months: IRG
Piper Jaffray expects to have the following companies as investment banking clients within the next three months: BAGL
Piper Jaffray expects to have the following companies as investment banking clients within the next three months: IRG
Piper Jaffray received non-investment banking securities-related compensation from the following companies during the past 12 months: SONC

For Brian Yu
A director of Citi serves on the board of AA
Citigroup Global Markets Inc. or its affiliates beneficially owns 1% or more of any class of common equity securities of AA
The Firm is a market maker in the publicly traded equity securities of AA
The Firm is a market maker in the publicly traded equity securities of BTU
Citigroup Global Markets Inc. or an affiliate received compensation in the past 12 months from ANR
Citigroup Global Markets Inc. or an affiliate received compensation in the past 12 months from AA
Citigroup Global Markets Inc. or an affiliate received compensation in the past 12 months from ACI
Citigroup Global Markets Inc. or an affiliate received compensation in the past 12 months from PCX

For Ken Usdin
As is the case with all Jefferies employees, the analyst(s) responsible for the coverage of the financial instruments discussed in this report receives compensation based in part on the overall performance of the firm, including investment banking income. We seek to update our research as appropriate, but various regulations may prevent us from doing so. Aside from certain industry reports published on a periodic basis, the large majority of reports are published at irregular intervals as appropriate in the analyst's judgment.

For Jeff Kilburg
Nothing to disclose




CNBC.com with wires.

Contact Halftime Report

  • Showtimes

    Halftime Report - Weekdays 12p ET
    Fast Money - Weekdays 5p ET
  • Scott Wapner is host of the "Fast Money Halftime Report," which airs weekdays from 12 p.m. to 1 p.m. ET.