Tags: Bespoke | Alcoa | Sinking | S&P | 500 | Signals | Slump

Bespoke: Alcoa Sinking in Tandem With S&P 500 Signals Slump

Wednesday, 13 Apr 2011 08:15 AM

U.S. stocks may drop in the next month after Alcoa Inc.’s lower-than-estimated sales drove down its shares and the Standard & Poor’s 500 Index, Bespoke Investment Group LLC said.

Alcoa tumbled 6 percent and the benchmark measure of U.S. shares lost 0.8 percent yesterday. Four times since 2001, the biggest U.S. aluminum producer slumped 5 percent or more after posting quarterly results, with the S&P 500 declining at least 0.5 percent on the same day. The equity index fell during the rest of earnings season every time, losing an average of 5.1 percent, according to data compiled by Bespoke.

“Ouch,” said a report yesterday from Bespoke, a Harrison, New York-based research firm. This “wasn’t quite the start to earnings season that investors were hoping for.”

S&P 500 earnings have topped the average analyst estimate for eight straight quarters, helping fuel the index’s 94 percent surge since dropping to a 12-year low in March 2009, according to data compiled by Bloomberg.

The S&P 500 gained an average of 0.2 percent following the first day of every earnings season since 2001, according to Bespoke. The four earnings seasons that Bespoke identified in its report began in January 2003, April 2004, October 2008 and January 2010.

The index slumped a fourth straight day yesterday, extending its loss since April 6 to 1.6 percent.

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U.S. stocks may drop in the next month after Alcoa Inc. s lower-than-estimated sales drove down its shares and the Standard Poor s 500 Index, Bespoke Investment Group LLC said.Alcoa tumbled 6 percent and the benchmark measure of U.S. shares lost 0.8 percent yesterday....
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2011-15-13
 

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