Alcoa, Intel: Tuesday's Headlines

Earnings from Alcoa and Intel were in the spotlight Tuesday.
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NEW YORK (

TheStreet

) -- Here are the top stock market headlines for the morning of Tuesday, April 13, 2010.

Tuesday's Early Headlines

  • Trade Deficit, Import/Export Index on the Rise -- The trade deficit rose to $39.7 billion in February, up from a revised $37 billion in January and above the $38.5 billion consensus of economists. Separately, March import prices rose 0.7% after falling for two consecutive months, although that was below the consensus of a 1% increase. Export prices also increased 0.7% in March.
  • Greece Short-Term Treasury Auction Overbought -- In the first offering since eurozone members agreed to offer financial support, Greece sold 1.56 billion euros ($2.12 billion) in six- and 12-month bills in an oversubscribed auction, according to several media reports. Investors appeared confident Greece could meet its financial needs after European governments pledged 30 billion euros of loans to the debt-laden country.
  • Small Business Optimism Falls In March -- The National Federation of Independent Business optimism index fell 1.2 points in March to 86.8, the 18th consecutive monthly reading below 90. "The March reading is very low and headed in the wrong direction," Bill Dunkelberg, NFIB's chief economist, said in a release. "Something isn't sitting well with small business owners. Poor sales and uncertainty continue to overwhelm any other good news about the economy."
  • Twitter Reportedly to Roll Out Advertising -- Twitter will begin rolling out advertising to users Tuesday, the company's attempt to turn its microblogging service into a profitable business, The Wall Street Journal reports. There will be around 10 initial advertisers, including Starbucks (SBUX) - Get Report, Virgin America and Best Buy (BBY) - Get Report. For Promoted Tweets, the new service, the ads will appear at the top of results for searches users conduct on Twitter, similar to Google's (GOOG) - Get Report successful search-advertising system, the Journal reports.
  • OPEC May Increase Output If Oil Hits $90 to $95 a Barrel -- Delegates from OPEC said they would consider raising crude output if the price of oil rose to around $90 to $95 a barrel. "We haven't met to discuss what we will do if the price reaches the $90 to $95 level, but for sure if the price reaches that level we will consider an increase," a delegate told Reuters. Crude oil was lately hovering above $83 a barrel in electronic trading.
  • Palm Sought Talks With Huawei: Report -- Palm (PALM) sought acquisition talks with China's Huawei Technologies, according to a Reuters report. Huawei was approached through its investment bank sometime in mid-February for "preliminary discussions," a source told Reuters. The report added that ZTE, China's No. 2 telecom-equipment maker, also was seen as a potential buyer. On Monday, after much speculation, media reports said Palm had hired bankers Goldman Sachs and Frank Quatrone's Qatalyst Partners to shop around for a buyer.
  • Kinder Morgan, Petrohawk in Nat Gas Deal -- Kinder Morgan Energy Partners (KMP) has agreed to buy a 50% stake in Petrohawk Energy's (HK) natural gas gathering and treating business in the Haynesville Shale for $875 million in cash.

Tuesday's Earnings Roundup

  • Alcoa (AA) - Get Report posted a first-quarter adjusted profit of 10 cents a share, which excludes 29 cents in one-time items, as revenue climbed 17.8% to $4.89 billion. Analysts were looking for earnings of 10 cents a share on revenue of $5.24 billion.
  • Intel (INTC) - Get Report will open the books on its first quarter after the close of trading Tuesday, becoming the first tech bellwether to report first-quarter numbers. Analysts expect the chip giant to notch a profit of 38 cents a share on revenue of $9.81 billion, according to a poll by Thomson Reuters.
  • Infosys (INFY) - Get Report notched a fourth-quarter profit of 61 cents a share, which was above its forecasted profit of 56 cents a share. Looking ahead to the first quarter and full year 2011, Infosys offered better-than-expected revenue guidance.
  • Talbots (TLB) reported a fourth-quarter adjusted profit of 13 cents a share as sales fell 3.7% to $315.9 million. That compares to the Thomson Reuters average estimate for a profit of 2 cents a share on revenue of $314.4 million. Looking ahead, Talbots offered better-than-expected revenue guidance for the first quarter and fiscal year 2011.

-- Written by Robert Holmes in Boston

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