Wednesday, October 27, 2010

Alcoa (NYSE:AA) Down on Mixed Economic Data

Ongoing release of mixed economic data has companies like Alcoa (NYSE:AA) being left with little or no direction, although investors and shareholders are starting to see and believe there will be a long stretch of economic weakness infecting the sector, even with estimated price and demand increases for aluminum.

The latest government data show business investment is expected to slow down, while the anticipated resumption of quantitative easing, which is strongly opposed in many quarters, will be incremental rather than all at one time, probably to lessen the opposition to the practice, which would grab hold of huge numbers and blast them if done all at once.

Also pushing down the share price of Alcoa is the strengthening of the U.S. dollar, which also put downward pressure on metal prices in general.

The aluminum giant dropped to $12.62, losing $0.25, or 1.94 percent as of 12:39 PM EDT.

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