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4/13/10 Midafternoon Report: Alcoa opens earnings season not with a bang but a whimper

|Includes: Alcoa, Inc. (AA), F, GOOG, JOEZ, PALM

The market sold off at the open today but is climbing back like a Phoenix from the ashes or Paul Volcker's economic reputation.  Alcoa's earnings initially brought the market down as they were a bit disappointing and Alcoa is considered to be the first bellweather company to report in this critical earnings season where baked in expectations are greater than they were for Ulysses S. Grant's presidency, the launch of the Space Shuttle Challenger, or Jay Leno's 10pm time slot.  Alcoa missed on revenues earning only $4.9B instead of analyst guesses of $5.2B while putting up an inline earnings per share number.  The company blamed the top line miss on the fact that they sell a fucking commodity and on Canada.  Interestingly, even though they were short of analyst guesses on revenue, they still grew the topline by 18% thanks to a 49% surge in the price of aluminum off of the depressed levels of last year (apparently aluminum was depressed because it found copper cheating on him with silver.  It's his own fault though, as steel tried to warn aluminum that copper was a whore and would smelt anything, but he didn't want to listen).  That said, shipments of aluminum slid 3% so demand still has quite a way to go.  In other macro news, the US trade deficit widened in February like a hooker's purse when seeing Eliot Spitzer walk by her after he has hit the ATM.  The trade deficit was up 7.4% to $39B and signaled that US consumers are getting stronger as they once again pass up American made goods for shit produced overseas.  Imports surged 1.7% with the majority of that coming from electronics, aparrel, and Laetitia Casta posters.

In international news, Greece had a bond offering to raise capital to help ease their budget deficit and the bonds are seeing stronger demand than Sarah Palin at a tea bag convention, potatoes during the great Irish famine, or Ann Darrow on Skull Island.  The latest bond offering was more than 6x oversubscribed which is more oversubscribed than a New Century subprime mortgage B tranche in 2004, the theory of intelligent design in Texas, or the rumored Jessica Simpson Juggs magazine photo shoot.  With the EU and IMF backing up Greece (and we all know the Greeks love getting backed-up), investors should have faith that the country won't go bankrupt and thus the incremental yield being offered by these Greek bonds should be solid investments.

In other stock news, the markets eagerly await the earnings of large cap banks tomorrow...READ MORE...

Disclosure: Long GOOG