It’s early in the week, but US stocks so far have been mainly fixated on the theatrics in Europe and their sovereign debt problems. Very fluid situation there, and that’s been reflected in some swooping climbs and sharp drops for the euro and US stocks today.
Meanwhile, Alcoa’s 4Q results late yesterday almost seem like an afterthought already, with the stock falling about 1% even as the bottom line beat analysts’ expectations, and outlook seems upbeat. The results were just fine, and most of the reports from the other 499 S&P 500 companies will likely be fine, too.
But we’d argue that “just fine” is well-priced into stocks today, and that’s the message in AA’s decline. More on that in a minute.
One report today that wasn’t fine was Supervalu’s fiscal 3Q, and the stock got punished, down almost 12%. Big bottom-line miss, with the company citing weaker-than-expected sales and margins, and while noting consumers remain under a lot of pressure.
Now, Supervalu has its own problems, a company acknowledged by management to be “in transition,” but their comments on the grocery retail space and state of the consumer are an interesting window into the economy overall. Continue reading…