Shares of aluminum giant Alcoa have jumped more than 2% in early trading following a company report after the close last night. The company announced that it would take $845 million in charges from restructuring its business making electrical parts for automobiles and planned sales of its packaging and automotive castings business. Alcoa had previously said it would consider breaking off the divisions but had not disclosed the financial impact.
Technically speaking, today's move higher takes AA back above its 10-day moving average, but short-term resistance at the 39.50 level remains overhead. This region capped the shares for 4 straight sessions from last Thursday through Tuesday this week. On the sentiment front, there is little evidence of sideline money for AA, as the stock's Schaeffer's put/call open interest ratio (SOIR) of 0.47 ranks below 85% of all those taken during the past year. Furthermore, 7 of the 10 analysts following the Dow component rate it a buy or better.