Alcoa drags on market
With many investors looking to Alcoa (NYSE:AA) as a bellwhether of the overall economy and underlying fundamentals of it, when they generated less sales then expected, stocks responded by plunging in value.
Investors were disappointed in the overall sales numbers of Alcoa, which ended the quarter at $4.89 billion, with estimates of $5.23 billion being looked for by analysts.
UBS (NYSE:UBS) was also quick to downgrade Alcoa from "Buy" to "Neutral" on the report.
The concern over Alcoa's numbers is it underscores the economy isn't has healthy as thought, and remains in a very weakened state.
Even so, most are looking for better earnings for many companies in the first quarter, but we'll have to see if that's related to increased business or cutting costs.
That's important as far as the condition of the economy goes, which is the most important indicator of them all, if we can trust the numbers being thrown around out there, which are usually more optimistic than the reality, and turned and twisted to represent the official government line.
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