Stock talk for the main street investor.

Alcoa Shows Growth

Alcoa’s (AA) numbers are in. They swung to a $0.13 per share profit but what’s important in their earnings is the growth in revenue from $4.24 billion to $5.19 billion. What this tells me is that the global economy is in a much better place than a year ago and we’re starting to see that drive down to material suppliers.

The reason Alcoa is so important is what they provide, aluminum. You know of aluminum as a supply in soda cans and other miscellaneous items but it’s also used in things like airplanes, cars and manufacturing equipment. If more aluminum is being purchased it’s a bullish data point for the economy. When aluminum struggles it’s bad for the economy. So chalk one up for the bulls.

The rest of the week is more “fluffy” companies like Google and JP Morgan. We won’t get a great indication if the economy is in full swing from them. But it will be entertaining none the less.

Disclosure: The mayor has no position in AA.

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