This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

The Two Most Important Company Earnings This Week

BOSTON ( TheStreet) -- Global bank JPMorgan Chase (JPM - Get Report) and oil company Chevron (CVX - Get Report) kick off fourth-quarter earnings reporting season this week, giving the first important clues on corporate performance as global growth slows.

Alcoa (AA - Get Report) posts results after the closing bell today, marking the unofficial, yet traditional, start to earnings season. The aluminum maker has cut capacity by 12% due to a drop in prices, leading investors to think Alcoa will report a loss.

Investors will have to hunt elsewhere for clues on how businesses fared during the fourth quarter if the short-lived 2012 rally is to continue. After only a week, the S&P 500 is up 1.6% and the Dow Jones Industrial Average has climbed 1.2%. One of the brightest spots in the early year rally has been bank stocks, with the financial sector of the S&P 500 up more than 3%.

Only four other companies in the S&P 500 and one other Dow component are scheduled to release results during the week, according to FactSet Research. The peak weeks of the fourth-quarter earnings reporting season won't come until Jan. 17. As it turns out, one of the S&P 500 and Dow components out with earnings results in the coming week is a financial stock, and it could shed light on how banks performed over the past three months.

JPMorgan is the first of the major financial companies to report financial results each quarter, making it a key report for investors to watch for early trends. Analysts are forecasting a fourth-quarter profit of 93 cents on revenue of nearly $23.5 billion, according to a poll by Thomson Reuters. The bank will open the books on its fourth quarter on Friday.

The financial sector was the worst-performing sector of the S&P 500 last year -- down around 20% -- but financials have been leading the way in 2012. With one week in, financials are up 3.5%, the biggest sector gain aside from materials, which are up nearly 4%. If investors have any hope that the rebound continues, JPMorgan will have to deliver.
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AA $9.87 -1.10%
CVX $88.48 -4.89%
JPM $68.53 -0.74%
AAPL $121.30 -0.87%
FB $94.01 -1.26%

Markets

Chart of I:DJI
DOW 17,689.86 -56.12 -0.32%
S&P 500 2,103.84 -4.79 -0.23%
NASDAQ 5,128.2810 -0.5040 -0.01%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs