Wall Street Readies for 'Throw-Away' Earnings
Aluminum giant Alcoa reports first-quarter earnings tomorrow, taking its usual position as the first Dow component to report and leading the way for what some investors are calling a "throw-away" quarter.
Forecasters predict Alcoa, for instance, will report a loss of 50 cents per share, following a fourth quarter of 2008 during which it swung into a loss.
Alcoa will be followed by industrials such as Dow Chemical, retailers such as Liz Claiborne and manufacturers such as GM and Ford.
All 10 sectors of the S&P 500 are expected to post year-over-year losses. As a whole, the S&P is expected to post a year-over-year decline in value of 35.9 percent.
The earnings reports could add additional uncertainty to the markets.
Wall Street expects first-quarter earnings to be bad this year, and that's where the name "throw-away" comes from. What it wants is some assurance that the second quarter and the remainder of the year will be better.
But here's the problem: Some major companies such as Pepsi, confounded by the volatile, dynamic market, have walked away from guidance for the rest of the year, basically telling investors, "You're on your own."
April 6, 2009; 5:24 PM ET
Categories: The Ticker | Tags: Alcoa, Dow Chemical, Ford, GM, earnings
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