Alcoa Earnings Could Tell Us a Lot
Will a resurgent Netflix Inc. (NFLX) - Get Report lift the Nasdaq on Wednesday? Will the U.S. stock market continue its encouraging rebound? What will Alcoa Corp.'s (AA) - Get Report third-quarter earnings, metal shipments and pricing tell us about the U.S. economy? Alcoa beat estimates on revenue and earnings in its last earnings report largely as a result of both higher shipment volumes and higher prices. Metal prices are higher this year, in large part because of Donald Trump's tariffs. Aluminum prices hit a year high in September of just more than $1 per pound, compared to 89 cents just before Trump's first tariff announcement in March. It'll be interesting to see where aluminum prices head next. It also will be interesting to see what shipments volumes look like as metals buyers adjust orders depending on consumer demand for their products.
Why Netflix Earnings Were So Impressive
How about those tech stocks? Netflix closed almost 4% higher on Tuesday and was rising more than 10% in premarket trading after beating estimates for earnings and subscriber additions, as its international segment grew 49% year over year. But was what particularly impressive about Netflix's international subscriber additions was that the International Monetary Fund just said eurozone GDP growth might only be around 2% for the year. The eurozone is a big area of focus for Netflix, as a research note from RBC Capital Market's Mark Mahaney explained earlier this year. Was Netflix able to plow through potentially slowing consumer budget growth in Europe?
Regional Banks Report Earnings
We saw very solid earnings across the board for the large-cap banks. Goldman Sachs Group Inc. (GS) - Get Report and Morgan Stanley (MS) - Get Report both posted solid earnings Tuesday, and last week's reports from JPMorgan Chase & Co. (JPM) - Get Report and Wells Fargo & Co. (WFC) - Get Report were strong. It's now the regional banks' turn. We'll be hearing from M&T Bank Corp. (MTB) - Get Report , U.S. Bancorp (USB) - Get Report and Bryn Mawr Bank Corp (BMTC) - Get Report . Combined, they have a market cap of $107 billion. Let's see what the smaller guys show Wall Street.