With nothing major on the economic calendar and the earnings season still some days off despite Alcoa’s (AA) report after the close on Monday, stocks will likely sustain the soft upward bias of the last few trading sessions. Alcoa’s results had a reassuring aspect in that they were less bad relative to their guidance some time back. The relatively less-dire demand outlook for aluminum will likely rub off on other commodity producers in today’s trading session.
Beyond the U.S. shores, we have Chinese international trade data for December showing a softening domestic demand environment, improving the odds of further monetary easing measures. The December exports numbers came inline with expectations, while imports came in weaker than expected. The full-year 2011 trade surplus figure was the lowest in the last seven years. When viewed in combination with the rebound in December PMI, it appears that the economy is stabilizing and will likely get a soft landing.
Among corporate pre-announcements, Juniper Networks (JNPR) and Liz Claiborne (LIZ) lowered guidance, while Cirrus Logic (CRUS) raised its outlook for the quarter. Emulex (EMLX) also raised guidance citing its ability to get back to full capacity after being affected by the Thai floods.
To read this article on Zacks.com click here.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment