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Tag: IBM

IRS Official Takes the Fifth Over IBM Contract – Chriss Street

The Internal Revenue Service (IRS) scandal heated up today when Greg Roseman, Washington D.C. Metro Area Contracting Officer and Deputy Director of the IRS, invoked his constitutional Fifth Amendment right against self-incrimination to avoid answering questions in front of the House Committee on Oversight and Government Reform to determine if he fraudulently steered $500 million […]

2013 Earnings Season: Forget Alcoa; Track These Real Bellwethers – Money Morning

At the start of every earnings season, investors typically turn to Alcoa Inc. (NYSE: AA) – the first company in the Dow Jones to report earnings each quarter – as a market bellwether.

But Alcoa is no longer a reliable market indicator.

“With this upcoming earnings season, we wouldn’t put nearly the same confidence [in Alcoa] that we would just five or six years ago,” Ryan Detrick, a Cincinnati-based analyst at Shaeffer’s Investment Research, told Bloomberg News. “The company’s results now predict the direction of the market about as well as a coin flip.”

In fact, Money Morning Global Investing Strategist Martin Hutchinson said Alcoa, the largest producer of aluminum in the U.S., should never have been used as an economic indicator.

“I don’t think Alcoa was ever a very good bellwether; it just reports first,” Hutchinson said. “The aluminum cycle tells you something about manufacturing conditions, but manufacturing is a small part of the economy these days.”

So if not Alcoa, then what stocks should investors pay attention to this earnings season?

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