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January 10, 2006
Metal stocks to decline with market, Tues., Jan. 10, 2006, 10:17 AM
Metal stocks are helping to pull down the broad equity market today in the U.S. After 20 minutes this morning, PD was down "8.2 pct and AA was down "6.1 pct.
Interactive link to Hourly data charts of PD and AA
Phelps Dodge Corp (NYSE: PD), one of the world's largest copper producers, reported that 4Q05 earnings would be significantly lower due to its copper price hedging program plus shortfalls in production and sales. Earnings projections have been slashed from estimates of $4.15 to $4.40 a share to $1 to $1.30 a share. The one-time quarterly charges were expected to rise to $2.05 a share from 23 cents a share.
Yahoo Finance news report on PD
Alcoa Inc (NYSE: AA), the world's largest aluminum producer, has also reported lower 4Q05 earnings due to significant operating write-offs.
As I warned yesterday morning with my delayed Week in Review, I believed that a short-term correction in a bull market in the metals was due. That extends to precious metals as well.
Posted by Posted by Bill Cara on January 10, 2006 10:17:18 AM | Category: 15 Materials
Discourse
bullring-
Yes I like oils for 2006. I think they will do fine. There were some names in mid-December that could have been had cheaply. ECA, COP, CVX, XOM, others. I don't think there was too much downside at those levels. I'd like to see SU, IMO, TOT, and PBR in my portfolio, but I'm not chasing.
Posted by: MarkM ![[TypeKey Profile Page]](http://www.billcara.com/nav-commenters.gif)
at
January 10, 2006 4:29 PM [link]
Bill/all....a lot of metal talk..... is anyone liking the oils here?
Posted by: Bullring![[TypeKey Profile Page]](http://www.billcara.com/nav-commenters.gif)
at
January 10, 2006 11:46 AM [link]