US Indices Extend Losses; Alcoa Swings to a Profit (AA)
With the fourth-quarter earnings season underway, the major US indices saw a second day of losses on Tuesday. Although Q4 profits are expected to be higher than the previous quarter, estimates have been lowered significantly since October. After the bell Alcoa Inc. (AA) showed strong results with a quarterly profit of $242 million. Monsanto Co (MON) also gained after surpassing a four-year high. On the other hand, Sears' (SHLD) shares fell 6.4% after announcing Chairman Edward Lampert would be taking over for CEO D'Ambrosio.Yum Brands Inc. (YUM) warned of slowing sales in China leading shares to drop. MetroPCS (PCS) also saw a loss on Tuesday coming at a bad time for its merger with T-Mobile. It was reported that consumer credit in the US increased more than expected in November mostly due to December's increase in payrolls and strong demand for cars and student loans. The euro ended lower against the dollar after the Japanese Finance Minister Taro Aso said he may buy ESM bonds with existing foreign-exchange reserves.
Word on the Street
- US consumer credit rises more than forecast for November on strong demand for student loans and cars.
- Alcoa Inc. (AA) reverses last year's loss with a fourth-quarter profit of $242 million.
- Sears Holdings Corp (SHLD) sees shares drop over 5% after announcement of CEO's exit.
- Seed giant Monsanto (MON) releases higher than expected Q1 profits.
- Unemployment in the euro zone reaches a record high of 11.8%.
- Target (TGT) vows to match prices of items sold on Amazon.com (AMZN).
- Both the euro and dollar drop against the yen after a BOJ policy meeting.
- The benefits of uncertainty in a time lacking corporate decision-making.
- Media trends and challenges to watch for in 2013.
Published on Jan 8, 2013By InvestorGuide Staff