In anticipation of an expected poor showing by Alcoa (NYSE:AA) for the quarter, Freeport-McMoran (NYSE:FCX) stock has been hit hard in trading, dropping $62.99 as of 1:26 PM EDT, a 4.53 percent plunge.
Expectations from Alcoa are for 12 cents a share for earnings, downwardly revised from prior estimates as high as 19 cents a share. Other analysts have them down as low as 10 cents a share in earnings for the quarter.
For Freeport, some of their downward movement could be related to profit-taking after a strong week.
But most of it is probably the lack of confidence in Alcoa's performance, which would reveal similar vulnerability in Freeport, which has similar exposure to the same global demand for metals as Alcoa has.
On the other side, if Alcoa surprises in its performance, Freeport could participate in a nice upward move too.
Either way, traders are ready to pounce on these stocks either way once the numbers of Alcoa are revealed.
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