Alcoa kicks off earnings season tomorrow. While the current quarter is expected to be a throw-away, it will likely be bad, pay close attention to guidance; if they give it.A lot of companies are saying things are just too confusing right now. But listen to Alcoa's view on whether businesses are using stimulus money to jumpstart projects that require raw materials, like aluminum.
Now onto the bailouts: According to one version, the president wants to maintain control over the banks by refusing to accept repayment of TARP money.According to the other version, the government wants to make sure the banks resume lending, before they give up the reins.
Either way, stocks sunk today, apparently because investors are bracing for more bad news from the banks. More bank writedowns anyone? Yeah, we're probably not clear of that tsunami yet.The fear is that investors are relying so heavily on beaten down bank shares to fuel the rally, that more disappointment will turn ugly for the markets.
If this is true, Cody the bear, will be right, and Eric the bull will be wrong about whether these markets are going way lower.
