Manufacturer of aluminum Alcoa 2Q earnings season begins (AP)

Alcoa Inc. began the season of quarterly earnings when it reports second-quarter results Monday after closing markets.

WHAT TO WATCH for: signs that Alcoa have benefited more from sales of aluminum to higher prices that it faced the rising costs of energy and raw materials. Some of his clients were also hit by the consequences of the earthquake and tsunamis in Japan in March.

The giant of the manufacture of aluminum, based in Pittsburgh, saw earnings stable in sales as the company has improved for clients key such as aerospace, automotive and industrial gas turbine industries. For the year, it expected an increase of 12% of global demand for aluminum.

The crisis of March to the Japan caused disruption in the flow of parts for a number of industries which uses Alcoa, but that seems to be facilitated. Ordered more than American aircraft, autos and equipment of oil drilling in may after a sluggish spring and June auto sales increased by 7%.

Price of aluminum has also improved during the quarter. Analyst Dahlman Rose & Co. Anthony Rizzuto provides Alcoa report a 6-cent per book increase the average prices realized for aluminum.

WHY it is important: Performance of Alcoa may reflect economic trends, because its products reach across a broad range of businesses. Its clientele includes automotive, aerospace, consumer products and construction and trucking industries. About 80% of its sales are in Europe and the United States.

What is expected: analysts surveyed by FactSet forecast earnings of 34 cents per share on sales of $ 6.3 billion.

In a recent note to clients, JPMorgan analyst Michael f. Gambardella said he expects to see the improvement of production, but most of the likely benefits of will be offset by higher costs of raw materials as fuel oil and caustic soda.

Rizzuto predicts sales will be better than a year ago, based on the increase in the price of aluminum and the volume. Also, he said, he expects Alcoa to maintain its orientation on global demand.

QUARTER last year: Alcoa reported net income of $ 136 million, or share of 13 cents. Revenues amounted to 5.19 billion of $. Shares of Alcoa the end of the quarter to $15.86 bottom of $17.66 March 31.

Netflix earnings on the Plan of expansion in Latin America, Caribbean - Bloomberg

Netflix will begin offering the video stream to customers in 43 countries in the region this year, the Los Gatos, California - based company said in a statement. Photographer: Jin Lee/Bloomberg.

Netflix Inc. (NFLX), rental of DVD and movie-streaming service, has increased most in addition to three months in the Nasdaq trade after the announcement of plans for expansion in Latin America and the Caribbean.

Netflix grew from $20.82, or 7.8%, to $288.81 at 1: 41. New York time, the biggest intraday gain since March 15. Shares of the company based in Los Gatos, California had risen to 53 percent this year before today.

Netflix begin streaming video in 43 countries in the region this year, including the Mexico, according to a statement today. Society's need to expand globally of sustained growth and generate funding for additional film rights.

"This announcement significantly expanded total addressable market of Netflix in Latin America and probably makes our subscriber end 2012 42.7 million conservative estimates", Anthony j. DiClemente, an analyst with Barclays Capital in New York, wrote today in a research note. It has an "overweight" rating on the shares.

2015, Latin America will be the most rapid growth in broadband connections that are needed for video services online such as Netflix, according to a report by November 2010 by consulting firm Analysys Mason in London.

Countries provide potential access Netflix 325 million households, according to George Askew, an analyst with Stifel Nicolaus & Co. in Washington that the stock of rates "hold." The service will be offered in Spanish, Portuguese or French, said Netflix.

Analysts expressed concern over the rising costs of Netflix content, including the potential price to renew an agreement continuous with the cable networks from Liberty Media Corp. Starz. The existing agreement of Starz costs about $ 25 million per year, Rich Greenfield, analyst, BTIG LLC, estimated in January.

On 1 June, the CEO Reed Hastings said he "would not be shocking" to pay as much as 300 million per year to renew this agreement.

"We recognize the concern of the investor on rising costs of content, but we believe that the Subscriber viral growth, international expansion and acquisition of content disciplined mitigate this risk," wrote DiClemente.

Netflix subscribers to the United States and the Canada pay $7.99 per month to watch TV shows and movies via the Internet. Some plans allow customers to receive DVDs by mail. Netflix has started allowing U.S. customers watch videos online in 2007 and began to offer the option to the Canada last year.

United States-centric

31 March 97 per cent of its customers was located in the United States, according to data compiled by Bloomberg.

Society is expanding in many countries both to obtain the scale necessary to pay for the Hollywood studios and other streaming content providers the old rights of films and television shows, Tony Wible, Janney Montgomery Scott analyst, said in an interview.

To support the growth of 30%, Netflix will have to reach 59 million subscribers in the world at the end of 2013, more 23 million today, said Wible, who has a rating of "sell" on the stock.

"To reach this point of reference, you have to 53 million in the United States and about 6 million internationally," said Wible.

Netflix, stated on April 26 its international thrust to the United States will give rise to international operating losses of as much as 70 million in the second half, maximum of $ 50 million, seen above.

To contact the reporters on this story: Cliff Edwards in San Francisco at cedwards28@bloomberg.net; Tracer Zachary in New York at the ztracer1@bloomberg.net

To contact the responsible editor of this history: Anthony Palazzo at the apalazzo@bloomberg.net

Earnings to set the tone, upside given limited (Reuters)

NEW YORK (Reuters) - head of investors in this week on the defensive as the potential of U.S. equity gains could be limited, even if earnings are starting on a high note.

The first results of the fourth quarter will set the tone. Any weakness will give marketers a reason to withdraw from the manifestation of recent weeks, which blocked Friday on stock Bank losses and poor jobs data.

Still, the major indices finished with a week of gains sixth line last week: is 0.8 percent increase of index Dow Jones, S & P 500 1.1 percent and the Nasdaq composite index ahead 1.9 per cent.

Alcoa Inc. (AA).(N) set to release results Monday after the close of the market, informally is the launch of quarterly earnings season. Intel Corp. (INTC.)(O) and JPMorgan Chase & Co (JPM).(N), also the Dow components issue even card report for the week and are supposed to do.

"It will be important to get out of the box with a positive note," said James Dunigan, that allows to manage $ 105 billion in the PNC Wealth Management in Philadelphia. "If this is the case, we have a way just to run and can keep rising, but if results disappoint there is reason to take back."

S & P 500 (.)(SPX) reached 7% since the beginning of December, while Alcoa has soared 25 percent and JPMorgan jumped 16 per cent. Analysts say that these rapid gains leave vulnerable market for withdrawal and may limit to the potential.

GOOD, BAD AND UGLY

The S & P 500 struggled to break above 1280, although that a floor appears to grow to 1 260, the moving average of 14 days and near 2010 close.

Jeffrey Friedman, a market strategist Lind-Waldock in Chicago, said if the results exceed online or missing expectations "we might see as long as a withdrawal of 8 per cent". Potential upside is 4 to 5 percent "and only if earnings beat convincingly," he said.

Friday December employment report could increase the likelihood that stocks decline. While the unemployment rate declined amount of heavy in December, far fewer workers have been added than expected.

"It's good, bad and ugly in this report, said Friedman." Property is the unemployment rate, bad was that we did not meet expectations, and ugliness is that we do not know whether good or bad is more right. »

This week will also see the Friday retail sales data which will be closely watched soft suite comparable sales in December. On Wednesday, the Federal Reserve will release the Beige Book.

Book Beige, an anecdotal report about the economy, by region, just after the Chairman Ben Bernanke gave his first testimony to Congress since the launch of a second series of quantitative easing. Bernanke said Friday that the economy may be hitting his stride even if growth remains too low to make a real dent in U.S. unemployment situation.

Bank stocks could put pressure on more this week after a high court Massachusetts decision that invalidated the seizure of two houses in foreclosure by Wells Fargo & Co (WFC).(N) and U.S. Bancorp (USB).(N).

The index of the banks of the Army (.)(BKX) is an increase of 18% since the beginning of December, but fell by 0.9% Friday.

The decision may be seized nationwide Bank and "dampen the prospects for recovery for the real estate sector and banks," said Nick Kalivas, a senior analyst in equity index MF Global in Chicago. "Financials have really been a leader on the market in recent weeks." This could close this sector. »

Earnings to set the tone, upside can be limited (Reuters)

NEW YORK (Reuters) - head of investors in the next week on the defensive as the potential of U.S. equity gains could be limited, even if earnings are starting on a high note.

The first results of the fourth quarter will set the tone. Any weakness will give marketers a reason to withdraw from the manifestation of recent weeks, which blocked Friday on stock Bank losses and poor jobs data.

Still, the major indices finished with a week of gains sixth line: is 0.8 percent increase of index Dow Jones, S & P 500 1.1 percent and the Nasdaq composite index ahead 1.9 per cent.

Alcoa Inc. (AA).(N) set to release results Monday after the close of the market, informally is the launch of quarterly earnings season. Intel Corp. (INTC.)(O) and JPMorgan Chase & Co (JPM).(N), also the Dow components issue even their report cards in the week and are supposed to do.

"It will be important to get out of the box with a positive note," said James Dunigan, that allows to manage $ 105 billion in the PNC Wealth Management in Philadelphia. "If this is the case, we have a way just to run and can keep rising, but if results disappoint there is reason to take back."

S & P 500 (.)(SPX) reached 7% since the beginning of December, while Alcoa has soared 25 percent and JPMorgan jumped 16 per cent. Analysts say that these rapid gains leave vulnerable market for withdrawal and may limit to the potential.

GOOD, BAD AND UGLY

The S & P 500 struggled to break above 1280, although that a floor appears to grow to 1 260, the moving average of 14 days and near 2010 close.

Jeffrey Friedman, strategist at market above Lind-Waldock in Chicago, said that if the results online or missing expectations "we could see as much as 8 percent withdrawal." Potential upside is 4 to 5 percent "and only if earnings beat convincingly," he said.

Friday December employment report could increase the likelihood that stocks decline. While the unemployment rate declined amount of heavy in December, far fewer workers have been added than expected.

"It's good, bad and ugly in this report, said Friedman." Property is the unemployment rate, bad was that we did not meet expectations, and ugliness is that we do not know whether good or bad is more right. »

Next week will also see the Friday retail sales data which will be closely watched soft suite comparable sales in December. On Wednesday, the Federal Reserve will release the Beige Book.

Book Beige, an anecdotal report about the economy, by region, just after the Chairman Ben Bernanke gave his first testimony to Congress since the launch of a second series of quantitative easing. Bernanke said the economy may finally be hitting his stride even if growth remains too low to make a real dent in U.S. unemployment situation.

Bank stocks could put pressure on more week next after a high court Massachusetts decision that invalidated the seizure of two houses in foreclosure by Wells Fargo & Co (WFC).(N) and U.S. Bancorp (USB).(N).

The index of the banks of the Army (.)(BKX) is an increase of 18% since the beginning of December, but fell by 0.9% Friday.

The decision may be seized nationwide Bank and "dampen the prospects for recovery for the real estate sector and banks," said Nick Kalivas, analyst of the main index of equity MF Global in Chicago. "Financials have really been a leader on the market in recent weeks." This could close this sector. »

View earnings hit seven month high

By Lucia Mutikani

WASHINGTON | 7 Jan 2011 7: 33 pm EST

WASHINGTON (Reuters) - U.S. economy probably created more jobs in December that no matter what month since may, confirming that an autonomous recovery is underway, but the unemployment rate is seen no margin only slightly downwards.

Non-agricultural earnings increased by an estimated 175,000 after November of slim gain of 39,000, according to a Reuters poll.

Last may employment growth was boosted by temporary hiring for a decennial census. However, the private sector should pushed for employment growth in December — up to 180 000 for its biggest gain since April, according to Reuters survey.

"Recovery becomes more sustainable and less dependent on temporary growth, particularly inventories, factors," said harm Bandholz, Chief U.S. economist for UniCredit in New York.

"There is more support from private demand including consumption." But the improvement of the labour market is still slower than what everyone hopes. »

The Ministry of labour will publish the closely monitored at 0830 employment report and it is planned to add a series of economic data more strong American.

Speculation about a strong jobs report helped push the dollar to a maximum of five weeks against the euro Thursday.

"There is a strong consensus that there is a certain numbers of good outbound (United States)... tomorrow and the expectations of a huge number of payroll feeds all sorts of dollar of purchase," says c.j. Gavsie, Director of sales of FX to BMO in Toronto capital markets.

Nevertheless, the unemployment rate is expected to have only checked at 9.7% from 9.8% in November.

December job numbers would boost to President Barack Obama. High unemployment cost control of the House of representatives of the United Democratic Party.

Officials of the Federal Reserve will weigh the jobs report when they meet on 25 and 26 January. Signs of strength could increase calls for the U.S. Central Bank scale back its widely criticized over $ 600 billion Government bond purchase program.

In December, some policymakers have indicated that they had a "relatively high" threshold to restrict incentive program.

FED TO STAY IN THE RACE

Fed Chairman Ben Bernanke speaks on Economic Outlook before the Budget Committee of the Senate at 0930.

Analysts say focus the Fed is on unemployment and expect to complete the link – purchase plan.