Today Alcoa (AA) unofficially kicks off earnings season. While we are uncertain as to how this company has become the name sake for the beginning of earnings season (90 day treadmill) we acknowledge the line must be drawn in the sand somewhere, and that we are digressing.
For many Wall Streeter’s the infamous 90 day treadmill (earnings season comes at you like a perpetual treadmill every 90 days, such the name) is all about expectations versus realities. Continually companies cleverly manage expectations down throughout the quarter only to surprise to the upside, although not in all cases.
Here is a chart from Standard and Poors of Q2 2012 earnings for the S&P 500 from a year ago until lately.
Clearly a year ago, this quarter’s earnings had greater expectations, however as of late, this seems very doable. The devil is always in the details and we will see how the macro economy has changed managers outlooks.
While the fourth of July marks the official start of vacation season for many on Wall Street (expect lower trading volumes), sometimes also known as the summer doldrums, given the awkward Wednesday holiday last week, we will be in full throttle mode this week, so keep those email boxes empty as we have a lot of catching up to do!
Have a Great Week! We will be in touch a lot this week!
JK
214-706-4300 www.jkfinancialinc.com
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A Night of reflection, the coming week kicks off the earnings treadmill, RMD’s, and a long weekend for some..
Last night I had the honor to receive the FPA Honor’s award from the Financial Planning Association of Dallas Fort Worth. There is no way to express in words the collective passion, integrity, intelligence and dedication that attendees and fellow recipients shared at the meeting. It was a terrific night of reflection of the last 24 years in the industry and another reason I am thankful to be in this industry servicing clients and friends, such as those who may be reading this.
In addition to earnings season officially kicking off next week with the October 9th announcement of our steady friend Alcoa, Quarterly performance reports and our slightly cynical Newsletter will hit the mailboxes and electronic vaults as well.
We will begin processing Required Minimum Distributions (RMD’s) for those that have such requirements next week as well, staying well ahead of the end of the year requirement.
The post office, bankers, and my kids have Monday off in celebration of
Columbus day. As such we would expect a slower than normal day today in the afternoon as well as Monday.
Have a great Friday and a super weekend!
JK
214-706-4300
http://www.jkfinancialinc.com
8222 Douglas Ave # 590
Dallas, TX 75225
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Posted in A Look Back and The Week Ahead, Investing/Financial Planning, Market Comments
Tagged Alcoa, Columbus Day, Earnings Treadmill, Newsletter, RMD