While investors have endured a great deal of adversity the last two years, there have been some signs that the economy could turn around. Two companies that are fighting to lead the stock market and investors back to prominence are Alcoa and CSX Corp.
Alcoa, the aluminum maker, and CSX Corp., the railroad operator, showed better-than-expected profits to kick off earnings season which sent stock futures higher. This comes on the eve of a five-day winning streak for the market and may be a sign of things to build upon.
Alcoa’s performance is critical to the market as a whole because of its varied customer base and also because it is the first component of the Dow Jones industrial average to report results. CSX is critical to the marketplace due to the fact that it ships a wide range of products.
Another predictor of the economy will be the earnings report from chipmaker Intel Corp that will release their report after the closing bell on Tuesday. With hundreds of companies set to release reports, the chipmaker’s report is considered a good gauge of the health of the economy since its sales are driven by consumers and businesses buying computers.
The Dow is set to expand on five straight days of gains. Last week was the best week for the Dow since July 2009 and it followed those gains with a modest climb of 18 points Monday. If the Dow were to close higher on Tuesday, it would be the first six-day winning streak since a streak in late April that sent the index to its highest level of the year.
Tuesday has the potential to be a monumental day for investors across the globe. If there continues to be positive movement in the marketplace, the economy may enjoy the rebound investors have been waiting for.
As been said many times before, “The trend is your friend.” With that saying in mind, a six-day winning streak for the Dow could be the trend that will dictate the future of many investors. Here’s to hoping for a positive day.