The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.
Once again Alcoa is set to kick off the latest US reporting season and on 8 October it is due to report its third-quarter figures. The company’s adjusted earnings per share are called higher at $0.204, even though sales are expected to have dropped from $5.836 billion down to $5.789 billion. The aluminum manufacturer is still expecting to see pre-tax profits jump to $367 million.
Considering the diverse exposure to manufacturing that Alcoa has, from cars and planes to soft drinks, its health is always a useful barometer on the state of global economies. It is unlikely that we will see a repeat of last year’s third-quarter figures as they came in at double the market’s expectations.
The last few days of September and the first few in October will see the majority of the global economic regions announcing their latest manufacturing PMI figures, and these could give a clue as to how Alcoa might perform.
The charts for Alcoa saw the shares peak twice just above the $17 mark before falling back, bringing an end to the impressive run that investors had witnessed since Q3 2013. The question is whether this is the end of the run, or a momentary lull. If these figures are impressive enough to break above the year-highs of $17.30, the next target will be the highs seen in April 2011 of almost $18.50.