After a promising close Monday, stocks reversed to the downside in
late trading on Tuesday. The Dow Transports bucked the trend while the
small- and mid-cap stocks were a bit weaker that the S&P 500.
Clearly, many are on the sidelines ahead of Alcoa, Inc. (AA)
earnings after the close today. Expectations are very low, so any
stocks that beat expectations are likely to be rewarded and weak results
may already be factored into many stock prices.
The large-cap stocks, whose earnings have been hurt by the much stronger dollar, are likely to get most of the focus. The iShares Dow Industrials (DIA) is up 0.83% YTD while the Spyder Trust (SPY) has done a bit better gaining 1.29%. Both are lagging well behind the 4.32% gain in the small-cap iShares Russell 2000 (IWM). (more)
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