Stocks Climb on Positive Earnings Kickoff
NEW YORK ( TheStreet) -- Major U.S. stock markets booked a fourth consecutive session of gains as investors were emboldened by an encouraging start to the new earning season led by Alcoa's
After the market close Monday, Alcoa reported second-quarter losses following restructuring costs, yet still managed to beat analysts' expectations. Alcoa reported a loss of 11 cents a share, losing $119 million for the quarter. Excluding restructuring and legal fees, the company earned 7 cents a share on $5.85 billion in revenue. Analysts polled by Thomson Reuters were looking for earnings of 6 cents a share on $5.83 billion in sales.
The company also eased some worries about the economy slowing in China, on Monday maintaining its estimate that global aluminum demand would persist at a 7% pace this year, spearheaded by demand in China where Alcoa reiterated its growth improvement outlook of 11%.
Shares pulled back 0.13% to $7.91, reversing earlier gains.
Tuesday is a relatively light day on earnings and economic data. On Friday, JPMorgan
Paul Pagnato, the Washington D.C.-based partner and managing director of HighTower's Pagnato-Karp Group which oversees more than $2 billion in client assets, said the market's been up for four days in a row thanks to hopes that Alcoa's positive report will be the first of many this earnings season.
"I do feel optimistic and that's because all the economic indicators in our country seem very, very good," Pagnato said during an interview at TheStreet's headquarters in New York. "So getting back to the housing market, the employment market, the purchases of cars ... If you look at the broad-based economic indicators, things look positive. And when the majority of economic indicators are starting to point in a positive direction, you should have good earnings."
Pagnato added that the chances of earnings beats also have increased this earnings season because during last quarter's outlook announcements, CEOs and CFOs of S&P 500 corporations did a "good job" of revising estimates downward, helping to lower the bar for this season.
Netflix was one of the top percentage gainers Tuesday on the S&P 500 after the company announced that it had extended an agreement with CBS