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Quick Take: Betting on Better Earnings

NEW YORK ( TheStreet) - The unofficial start of earnings season kicks off after the bell today and TheStreet's Debra Borchardt is with Jon Corpina, managing director of Meridian Equity Partners, discussing the outlook for the next several trading weeks.

The season is considered to begin when Alcoa (AA - Get Report) reports after this afternoon's close.

A the aluminum company slumps, does it make any sense to look for the success of the rest of corporate America based on its results?

According to Corpina, not really. While the earnings in general seem to do better when Alcoa beats top and bottom line estimates, it's unrealistic to think that one company can shed light on thousands of others in different sectors and industries.

While economic data points give investors a much broader sense of the global economy, earnings have a "micro" focus on individual companies, he said.

So what's Corpina watching for in the coming weeks?

No necessarily individual stocks, he said, but the energy and financial sectors, because they provide insight as to how the U.S. economy is really doing, as well as how it's being affected by Europe, China and the Middle East.

"Those typical sectors are going to help investors get a better idea of what our earnings season might look like," Corpina concluded.

JPMorgan (JPM) and Wells Fargo (WFC) both report earnings this Friday and will kick off the financials.

-- Written by Bret Kenwell in Petoskey, Mich.

Bret Kenwell currently writes, blogs and also contributes to Rocco Pendola's Weekly Options Newsletter. Focuses on short- to intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.

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