Futures rise on Alcoa beat

Earnings season kicks off with the aluminum maker surprising Wall Street. Also, JCPenney ousts CEO Ron Johnson.

By Benzinga Apr 9, 2013 8:30AM

Stock market Digital Vision SuperStockBy Matthew Kanterman


U.S. equity futures rose slightly in premarket trade following a positive report from the economic bellwether Alcoa (AA).


Alcoa reported first quarter earnings per share ex-items of $0.11, which beat estimates of $0.08 per share, but sales fell slightly short of the forecast. Alcoa also reaffirmed its global aluminum forecast of 7% growth and noted strong demand, especially from U.S. automakers and construction companies, and falling global supplies as key catalysts.


In other news, J.C. Penney (JCP) ousted CEO Ron Johnson, and his replacement is former CEO Mike Ullman.


Chinese inflation gained less than expected in March, a sign that the global economy may be slowing slightly from February. Chinese CPI rose 2.1% from a year ago, slower than forecasts of 2.4%. Producer prices fell 1.9%, bigger than the 1.8% decline forecast.


Federal Reserve Chairman Ben Bernanke spoke overnight and hinted that any Fed exit policy would begin with hikes in the interest rate on excess reserves (IOER) and that asset sales would come much later, if at all.


  • S&P 500 futures rose 2.2 points to 1,561.70.

  • The EUR/USD was rose to 1.3035 after holding support at 1.3020.

  • Spanish 10-year government bond yields fell to 4.74% from 4.75%.

  • Italian 10-year government bond yields were flat at 4.35%.

  • Gold rose 0.01% to $1,573.70 per ounce.

  • Click here for more of Benzinga's Top News stories!

Asian markets

Asian shares were mixed overnight as Japanese shares halted their post-Bank of Japan rally and Chinese shares rose on hopes of monetary easing in the face of slowing inflation. The Japanese Nikkei Index was flat overnight and the Shanghai Composite Index rose 0.64% while the Hang Seng Index rose 0.7%. Also, the Korean Kospi rose 0.11% and Australian shares popped 1.45%.


European markets

European shares were higher as Cyprus and Portugal fears blow over. The Spanish Ibex Index rose 0.92% and the Italian FTSE MIB Index rose 1.14%. Meanwhile, the German DAX rose 0.37% and the French CAC rose 0.48% while U.K. shares rose 0.48%.


Commodities

Commodities were modestly higher overnight despite the weakness in Chinese inflation. WTI crude futures rose 0.22% to $93.60 and Brent crude futures rose 0.41% to $105.07 per barrel. Copper futures rose 0.67% to $339.55 on both the Chinese news and the Alcoa guidance on the global economy. Gold was higher and silver futures rose 0.36% to $27.24.


Currencies

Currency markets took a proverbial breather overnight after the massive moves in the yen crosses over the past few days. The EUR/USD was higher at $1.3035 and the dollar fell against the yen to 98.84 after briefly probing the 100 level Monday. Overall, the Dollar Index fell 0.26% on weakness against the euro, the pound and the yen.


Earnings reported Monday

Key companies that reported earnings Monday include:

  • Alcoa (AA) reported first quarter earnings per share of $0.11 vs. estimates of $0.08 and better than the $0.10 reported a year ago. However, sales were light at $5.83 billion on forecasts of $5.89 billion.

  • A. Schulman (SHLM) reported second quarter earnings per share of $0.27 vs. $0.40 a year ago, a miss of 32.5%.

  • AngioDynamics (ANGO) reported third quarter earnings per share of $0.08 vs. estimates of $0.05. Sales were light at $81.6 million on forecasts of $81.7 million.

  • Mistras Group (MG) reported third quarter earnings per share of $0.07 vs. estimates of $0.17. Revenue was slightly stronger than forecasts at $133.7 million vs. forecasts of $131.62 million.

Premarket movers

Stocks moving in the premarket included:

  • Alcoa (AA) shares fell 0.6% in volatile trading after reporting a bottom-line beat but a bottom-line miss and reaffirming guidance.

  • J.C. Penney (JCP) shares fell 5.1% premarket after it announced the sacking of Ron Johnson.

  • Cliff's Natural Resources (CLF) shares rose 2.45% premarket on bullish sentiment for global metals and mining stocks following Alcoa earnings.

  • Advanced Micro Devices (AMD) shares rose 0.77% premarket on news that Microsoft (MSFT) is set to include the company's chips in its latest Xbox console update. (Microsoft owns and publishes Top Stocks, an MSN Money site.)

  • Click here for more of Benzinga's Premarket Outlook!

Earnings

Notable companies expected to report earnings Tuesday include:

  • ADTRAN (ADTN) is expected to report first quarter earnings per share of $0.08 vs. $0.20 a year ago.

  • PriceSmart (PSMT) is expected to report second quarter earnings per share of $0.77 vs. $0.67 a year ago.

  • Supervalu (SVU) is expected to report fourth quarter earnings per share of $0.18 vs. $0.36 a year ago.

  • Click here for more of Benzinga's earnings news!

Economics

On the economics calendar Tuesday, the NFIB small business optimism index and ICSC chain store sales data are expected to be released, followed by the Redbook. Also, Fed President Lacker is set to speak and wholesale trade data is due out. In addition, the Treasury is set to auction four-week bills and three-year notes. Overnight, China's trade balance, French, Spanish and Italian industrial production, and the latest OECD global economic forecasts are all due out.


More from Benzinga

Click here for your FREE trial of Benzinga Pro!

1Comment
Apr 9, 2013 10:22AM
avatar
The revenue miss indicates they aren't growing their business by selling more aluminum but are trying to "cost cut" their way to meet their numbers.  Alcoa used to have a slogan that said " Alcoa Can't Wait " we'll guess what...neither can their investors!  This company is going nowhere.
Report
Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
Categories
100 character limit
Are you sure you want to delete this comment?

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

STOCK SCOUTER

StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

117
117 rated 1
280
280 rated 2
478
478 rated 3
656
656 rated 4
650
650 rated 5
640
640 rated 6
647
647 rated 7
482
482 rated 8
277
277 rated 9
126
126 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
AAPLAPPLE Inc10
ATVIACTIVISION BLIZZARD Inc10
CTSHCOGNIZANT TECHNOLOGY SOLUTIONS10
FOXATWENTY-FIRST CENTURY FOX Inc CLASS A10
ITUBITAU UNIBANCO BANCO MULTIPLO S.A.10
More

VIDEO ON MSN MONEY

ABOUT

Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.