Fourth-quarter earnings season got off to a decidedly mixed start this week.
Alcoa (NYSE: AA), the historic earnings-season bellwether and aluminum maker, seemingly started earnings season with a bang by beating analyst estimates by a solid 18%. Other major earnings reports haven’t been so glowing – namely the banks.
Bank of America’s (NYSE: BAC) earnings declined 11% year over year. Fellow big banks JPMorgan Chase (NYSE: JPM) and Citigroup (NYSE: C) also fell short of analyst expectations this week.
That hasn’t helped a stock market already struggling due to plummeting oil prices and disappointing December retail sales. The S&P 500 is down close to 3% in the first two weeks of 2015.
That makes the next few weeks of earnings reports critical. The last earnings season saw the highest beat rate in years, helping stocks move further into record territory. If the banks are a sign of how this earnings season might play out, the next couple months could be a bumpy ride. Let’s hope the Alcoa report ends up being the harbinger it typically is.
Whichever direction the market is headed in the coming months, there is plenty to write about as we get deeper into the New Year. Here is a sampling of what was on our analysts’ minds this week at Wyatt Investment Research:
Beware of High-Yield Energy Stocks– Today, energy stocks offer some of the highest yields. But high yields don’t necessarily translate to safety.
It’s Time to Buy 3D Printing Stocks– After a tough 12 months it’s time to buy 3D printing stocks again.
Want Safety? Buy These Five Defense Stocks–The dividends being paid by defense stocks aren’t eye-popping. But given the long-term return potential of these stocks, investors should be buying defense dividends.
Stop Paying Real Estate Taxes, Legally – A special Federal program allows homeowners like you to completely pay off your real estate taxes through exclusive rebates. You can start collecting these Real Estate Tax Rebates on January 21st… and every month after that!
Two Investing Themes to Consider in 2015– A new year brings new investing themes. Here are two that should help guide your portfolio in 2015.
Record-Low Treasury Bond Yield Good for Dividend Stocks– Dividend stocks are your best bet in a world where interest rates are mired near zero and Treasury bond yields have plummeted.
2015 Could Be the Year of Big Bank Breakups– From big bank breakups to activist interventions, 2015 could be a pivotal year for the nation’s largest banks.
How to Keep Your Retirement Plan on Track– Few things ever go exactly according to plan. That’s true for life and it’s true for creating a retirement plan.
Is Revamped Wendy’s Appetizing for Investors?– Wendy’s (NYSE: WEN) is changing its image. And that could be good news for investors.
Look for Bargains in the Eurozone– Struggles in Europe provide opportunity, but choose carefully.
Earnings Season Calendar– With Q4 earnings season upon us, here are the earnings reports you should be paying close attention to the next couple months.
This Myth Can Sink Portfolios (and Possibly a Country) – The canal isn’t perfect, and many Panamanians fail to appreciate this fact.
Does the Ford Dividend Increase Make the Stock a Buy? – With analysts looking for a better sales performance from Ford, does the dividend increase make sense?
Thanks for spending the weekend with us. We hope to see you right back here at WyattResearch.com next week.