Alcoa Sinking With S&P 500 Signals Slump, Bespoke Says
Alcoa Sinking in Tandem With S&P 500 Signals Slump
Simon Dawson/Bloomberg
Alcoa tumbled 6 percent and the benchmark measure of U.S. shares lost 0.8 percent yesterday.
Alcoa tumbled 6 percent and the benchmark measure of U.S. shares lost 0.8 percent yesterday. Photographer: Simon Dawson/Bloomberg
U.S. stocks may drop in the next month after Alcoa Inc. (AA)’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 gained less than 0.1 percent to 1,314.41 at 4 p.m. in New York today, after slumping four straight days. Alcoa slid 0.9 percent to $16.55.
To contact the reporter on this story: Inyoung Hwang in New York at ihwang7@bloomberg.net
To contact the editor responsible for this story: Nick Baker at nbaker7@bloomberg.net
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