The irrespressible market marches on this morning as the futures point to a higher open following an earnings beat by Alcoa to kick off earnings season. The aluminum giant earned 21 cents per share excluding special items vs. 19 cents per share consensus expectations, boosted by stronger aluminum prices and cost savings. They expect global demand for the metal to double by 2020.
The pre-market boost also follows gains in most foreign markets overnight despite lingering concerns about the European debt crisis and further flooding in Australia that threatens to crimp the emerging country's near-term growth. American investors also seem to be shrugging off last week's disappointing non-farm payrolls number. The drop in unemployment was also concerning to the trained eye as it suggests discouraged workers are leaving the labor force. While the report was indeed troubling, the results were not exactly as they seemed
While the rest of this earnings week is quiet, the blockbuster reports will begin in earnest next week. Those results will determine the fate of the rally
, according to Scott Redler
. The market has actually rested since the start of the year, but leading stocks continue to make moves
. You can stick with tech leaders like Apple Inc. (AAPL), Netflix Inc. (NFLX), and F5 Networks Inc. (FFIV), says Redler. He also believes a more forgotten tech stock, Research in Motion (RIMM) has put in a reverse head and shoulders pattern that forecasts higher prices. Redler also likes the banks, casinos
and agricultural stocks for significant upside over the next few months.
Also, congratulations to the Auburn Tigers for winning college football's BCS National Championship over the Oregon Ducks. The game was not the high-scoring shootout many expected, but it came down to the wire with a last second field goal providing the margin of victory.
Chipotle Mexican Grill (CMG) was a big winner in 2010, exploding through the previous high of $150 and going parabolic. The stock hit near $260 before pulling back in to its moving averages around $220.