i say more fords than alcoas.en the market comes down hard like yesterday that is when the alcoas aren't represented. after a day like today we have too much anti-ford like optimism. somewhere in between is where reality is. if you have big cyclical stocks let them go. let them go. there is always a bull market >> narrator: in this episode of "american greed"... trevor cook claims to have a revolutionary new way to trade foreign currency with guaranteed profits. >> investments were safe and protected and in segregated accounts. >> i am here to give you solutions to this massive fiscal pollution that everyone in this country is experiencing without exception. >> narrator: and more than 700 investors rolled over their life savings. >> i thought, "this is very impressive. it's invested overseas, so therefore it isn't taxed." oh, my goodness. this is just too good to be true, isn't it? >> narrator: but no one knows that cook and his partners are

parts will be managed for boeing and air stream, and the partner with alcoa for a brand-new invention. >> what we did over seven years of development with whitney, just a technical collaboration, we created a fan blade that changed the game, lighter than titanium, cheaper than titanium. >> aerospace is a high growth, high space margin business. the back log means the business will last a long time. but perhaps most importantly it is not a revenue stream hurt by the weak aluminum prices that hit alcoa and its competitors so hard since the recession. >> if you can be on the cutting edge of application development so that when a new airplane is designed or a new engine is being designed and you're the only one at the table with the customers, then in many ways you're insulated from commodities because you're not making commodities. >> alcoa has been on the forefront on this element. with the f-150 pickups to spacex rockets. >> the strength in the aluminum market has really propelled the stock over the last 12 months or so. however, alcoa is also going through a transition where they're f

we have alcoa coming in. we'll brit numbers to you as soon as they come out but there are concerns things happening overseas particularly because of the strong dollar might affect earnings here for the third quarter. are you at all concerned about that? >> i wouldn't say that we're overly concerned, however, it will cause some noise in the numbers, given the strength in the dollar but overall we think earnings season will be relatively positive and the read that we have for most of the companies that we follow at the hodges fund is that the outlook for the fourth quarter should be generally positive across most sectors of the economy. liz: okay. we could, if we can, put up alcoa's stock reaction as we work through the numbers. we're not giving them to you yet. we have to work through them but the stock is moderating just a moment here. that brings me to bern heey. you're say earnings will drive this as we look towards names like alcoa but also some of the bigger names. i'm thinking for example, the internatio

alcoa earnings.ou start with whatever jumps out to you most here. >> i was surprised to hear that a federal reserve minute that comes out which says, listen, we are going to be data dependent, not going to lockstep raise rates was a shocker to the market. given the thakt that's very consistent what they have been saying. the same time the market was looking for some good news. so it took it for good news and i think what we saw was a lot of short scramblinscrambling, longe sidelines saying maybe enough is enough. a lot of stocks reached good prices and a nice rally. i do not expect anything except earnings to determine whether the rally continues and alcoa would say there's some legs to this rally. >> right. i'm just curious talking about trading ranges. a lot of guys as you know pitting on the trade positioning for higher rates thinking that was kind of a scenario here to think about into next year. now that's not the case. look at the consumer staples today. one of the best days in seven months. ba

winners like alcoa.n, of courses, the chartists freak out as we take out levels that seemed to hold yesterday and they make dramatic projections about how low we need to go. i still can't believe it. incredentialy pressured off the charts segment. we're in a real tough moment for stocks as ed ponzi told us in off the charts, once certain key levels get taken out the selling will become more intense and it's not like they can switch into investor mode and react to the fundamentals. they aren't able on say, wow! the stocks i am brought down with my selling are now at such a raktive levels and that's not how it works. these traders, the declines mean more than one thing, more declines ahead. so what do you do? you get out ahead of those declines. how is the treachery end. how does this end? two ways. one, we get so low this europe doesn't matter nor the other ills whether they be ebola or isis or the slowdown in china some three issues that are all worth fretting about or do the ceos make peace in europe, c

liz: we have a stock alert for alcoa.hares are slightly lower at the moment, kind of flat after cutting an earlier loss, so we will have those for you as soon as they come out. you may own it in your portfolio comes out an hour from now. unofficially kicking off the earnings season with results be ed david asman and i will have details. what is interesting is the stock price for better or worse so closely correlated with the price of aluminum if the price falls, alcoa stock falls. aluminum prices are falling so don't miss it, we will have it. gm's dockets moving higher higher hitting a new 52 week low earlier today but then moving up by a percent. it is currently trading below its post bankruptcy 2009 ipo price and that of course was $33 for those of you listening on sirius xm, is at $32.09 pennies. the slump come the wake of the automaker issuing 76 recall this year. cover and some 30 vehicles and morgan stanley cut in the gm price target and cu cutting the full-year forecast as well. just last week gm ceo mary barra cam

. >>> still ahead, alcoa's sup price and what shareholders need to pay attention to. that's next. >>> it's not the money bill groves might be used to but it a start. after resigning from fund, he joined janis capital group to run the 13 million dollar bond fund. today we learned investors moved more than $66 million into the fund after he came on board. by contrast, investors pulled out more than $23 billion from gross' former fund. >>> turning to earnings and a strong beat tonight from alcoa. the aluminum giant, alcoa made 31 cents a share eight cents better than estimates and revenue topped forecasts by nearly a half billion on strong demand for aluminum and the aluminum products the company manufactures. and ceo is satisfied. >> they are coming in two large contracts, each one over a billion dollars, one coming from pratt and whitney for engine materials and the other coming from boeing, again, 1 billion plus. it's clear aluminum is there to stay and aerospace and growing in places like auto motive. >> shares rose initially in after hours trading as you see on that

we had better than expected earnings from alcoa. plus, fed minutes indicating that rates will not rise sooner than expected. >> and it's that aspect that really interests me. bad news is good news and it really begs the question, how positive, how supportive is the market dynamic if people are thinking, well, it's actually the policy that we need to react to, not the fundamentals? and that's quite a big change as we rewind four days to last friday and a positive employment report was positive for the markets. everything changed quickly. >> right. the fed keeping into account the stronger dollar as well as slowing growth globally. we did see that rebound yesterday. let's take a look at u.s. premarket trade. right now, implying a higher open. nasdaq up about 10, s&p 500 up about 5 and the dow jones up 22 points. it seems like that is a sigh of relief coming to the european markets, as well. we're looking at the ftse 100 up about 46 points. interesting to see the xetra dax, the germ yab markets continue to move higher despite that nega

>> it's really interesting but i think alcoa is well possessioned. the numbers i saw 11 cents, the expectation for them to do 22 cents this quarter. i think you'll see demand, you know, strengthen their top line. i think what you'll see is potential improvement or at least beginnings of improvement and maybe positive comments out of their management team. largely because commodities, the aggregate that goes into their finished goods, there's favorable currents there for them as commodities continue to go down in price. >> you heard, mike, our report from bob pisani talking about some of the themes especially of china. and what do you expect to hear from ceos in the conference calls with analysts after the numbers come out about the, you know, quarter pass, current quarter and the quarter looking ahead? >> i don't think china's going to be a big problem in terms of what you're going to hear in terms of verbiage out of the o ceos of s&p 500 companies. you'll have questions around a rapidly -- well, a dollar that's improved in terms of price against oth

remember alcoa?t had a beautiful quarter but the start of earnings season coincided with the beginning of the market's decline. i heard in reality you were too bullish. it wasn't that good a quarter because the stock went down. europe is going to take it lower. watch this one. i think people are recognizing alcoa's quarter for the greatness. i think you have a terrific opportunity to buy this turn around. when things get tough we see real panic out there. earlier this week disney caught a downgrade from an analyst who signaled things were as good as they could get and possibility of an ebola scare at the theme parks. emotionalism took the stock down to 80 and turned out to be a fabulous buying opportunity. let this be a reminder that the action nor negative analyst views should determine your views. if you did your own homework this week you made a heck of a lot more money than if you were swayed by a market that wanted to go down despite stellar fundamentals of some of the great companies that had t

your alcoas of the world are down again here today. alcoa is down about 3% as you can see. we also have coal stocks. they've been having a rough time of it. they're weak again today as you can see. down 2% and 3%. finally, i just want to note that we have been slowly creeping up on the vix. it's been historically low. but as it sits around now 17, almost 17 here, we're sitting at, oh, three, four-month high on the volatility. >> bob, i'll see you again in a little bit. simon, it really did get ugly right at the close leading into the close in europe. >> absolutely, sue. and to be honest about it, it looks as if it's all about mario draghi. yes, the president of the ecb announced that it will start buying bundles of bank loans across the 18 member states but he failed to give a target. more importantly, markets have already rallied in anticipation of public quantitative easing, big-time buying of each nation's government debt. not only surprises towards that, draghi appeared to walk back from his earlier target of increasing the size of the ecb's balance sheet by 1 trillion

alcoa reports after the close tomorrow.may not be in the dow tomorrow, but investors were rely rewarded for hanging with the stock. you did it, shares up a whooping 50% just in 2014 alone. some look to the am alcoa for durable goods. and on thursday, before the bell, pepsico.m alcoa for durable goods. and on thursday, before the bell, pepsico. alcoa for durable goods. and on thursday, before the bell, pepsico.alcoa for durable goods. and on thursday, before the bell, pepsico. another stock that has been an outperformer this year. it's gained 12% so far. more than double that of rival co coca-cola. back to you. >> and of course currency could be something to watch for this earnings season. particularly for pepsico. >> i pulled up costco last couple earnings reports that they had, even though they didn't beat, the stock actually traded higher after last two earnings reports. but to guy's point, if these ebola he had will li headlines s you'll see demand on that side and oil will continue to go lower. so the whole spectrum wil

earnings season has kicked off and alcoa came out with better than expected results. in after hours trading, alcoa shares -- have faired in the last quarter and what -- the demand, sales outlooks and proftds going forward and how companies in japan relate to the world's biggest economy. so that's going to be a big focus as well. >> policymakers at the fed seem to be worried by the dollar's sudden gains. where is the dollar trading this morning? >> the dollar yen has been a big focus and has fluctuated a bit, hasn't it. right now, it's at 108.23 to 25. it has back ed off since last week. now, the surge in the dollar was touched on by bank of japan officials, so the recent strength of the dollar or weakness of yen has caught the attention of bankers around the world. after the recent release of two year highs -- that's the euro dollar. many analysts are asking whether the dollar is in for a big correction and whether it will fall further or if investors will see this as an opportunity to buy the dollar at cheaper levels. in asia, also focus on china markets, the shangha

we've got alcoa kick off earnings season on wednesday.e us the trade here. >> i think it's time once again after steel has fallen precipitously, big steel has fallen 35% in the last several weeks. nucor has fallen dramatically. i think the global economy is still going to be strong in a global economic upturn. i think that's what is going to half. it's an old story of mine. if you drop them on your foot, you want to own them. i want to buy steel. i want to buy rails. i want to buy aluminum. and i think that alcoa, having been out of now for two and a half week news and having been in it for almost a year, it's time to start look at owning those very simple ideas. alcoa and big steel are my ideas again for if first time in a while. >> dennis gartman, the gartman letter. >> thanks. >> guy adami, into earnings. >> u.s. steel ran up to 45, overshot a little and right back down. i think u.s. steel is interesting here. i don't think the risk -- i think the risk-reward sets up really well you. don't have to risk that much in u.s. steel. and alco

i keep thinking of the thrashing alcoa got after the amazing quarter where they admitted the obvious, that europe is weaker. alcoa came in with a stock that's doubled in a very short time, real head of steam into that quarter. just to show you the dislocation of the market. do you know ppg, one of my favorite industrials is down 2.5 for the year. can you believe that? not that long ago this stock tratded at $213? today it was 184. we don't even know if anything negative has happened. that is how brutal this market has become. perhaps the most important day is friday, with results from honeywell and general electric. honeywell steered the company as well as you can shepherd this business -- did i mispronounce his name shows how rattled things are. he has important divisions to cover auto and aer os space and nonresidential construction. every single one was in bull market mode. we just got that from al co-with a which has a huge aerospace business. if they keep going down, whatever positive earnings cody gives us will be viewed as being in the rearview mirror. nonresidential constructi

alcoa will be reporting after the markets close.u say is not for the faint of heart. >> that is right. i am selling a strangle ahead of earnings. >> explain what that means. >> i am selling both the put option and call option. sellingk is around $15, 14.5, 16.5. 14.5 puts andye 16.5 calls simultaneously and electing $.20. stock is trading around 14.5 right now. -- 7.5%ving me 17 point buffer on the downside, sick .5% on the upside. remainsas the stock bound, i can keep the entire 20%. that would be my next profit. there are opposing forces at work here. you have a strong dollar, weak economy in europe, imf lowered their forecast. that will put a lid on the stock. on the other hand, aluminum prices have been stabilizing and the company is executing well, though that will keep the stock up. my hope is that these opposing forces will keep the stock in a range. her member, this is just a two-day trade. for two days i am hoping the inck stays around 6.5% or so the range and then i can make my most money. >> checking the last time alcoa r

this is alcoa's new aluminum lithium facility in indiana.of three the company is building across the globe right now. take a look at this. this is a furnace filled with molten aluminum that will go through a forging process to be manufactured into plane parts for boeing, air bus, even spacex rockets. this is all part of alcoa's aggressive push in aerospace. part of an expansion that also includes the company's $2.8 billion acquisition. why are we seeing this? aerospace is a high growth business for aluminum makers. backlogs make this a long-term play. and most importantly it's a revenue stream that is not hurt by the weak aluminum prices that has hit alcoa and its competitors so hard since the recession. >> if you can be on the cutting edge of application development so when a new airplane is being designed or a new engine is being designed and you're the one at the table with the testimony then you're insulated from commodities. >> so analysts say alcoa's been on the forefront from smelter to finished parts producer especially in aerospace

i like alcoa here. the other one reversed off the conference call. these are great american companies going down because of europe. will you look at that? a sea of green. >> you heard the opening bells. zayo is a provider of bandwidth infrastructure services and did celebrate its ipo today. at nasdaq, glaad, standing up against bullying. >> alcoa. >> that was a great quarter and no one cared. if alcoa can come back, it says the market has a degree of memory we didn't think it had. goldman sachs, it was a great quarter. >> stock was down. that was a different take. today i look at this. are we done? >> no, no. >> is that the flush? i didn't really hear it. >> the flush? you told me what the flush was. the flush was about shire. >> it was. >> that was the bottom of this. if we get more ebola over the weekend, a lot of shorts covering, be aware that oil is the crucial number because oil says the world is not going into recession. >> did oil get a bit overdone there? >> yes. i think there was a moment where the limited partnerships, it was between 9.45 a

. >> alcoa and pepsi beating the street. >> leadership, gap shares down. murphy announcing he will be retiring. >> carl icahn released an open letter to apple ceo tim cook saying the company shares are massively undervalued and should be trading at $203 a share now. icahn expressed support for cook's leadership, urged him to accelerate the share buybacks. he would not tender a share if apple institutes a new share repurchase program. calls cook the ideal ceo. says this is not a criticism. a long letter about how the market is getting this wrong. >> i think you are right to say it's about how institutional investors are underinvested in apple. he also says if you want to get those investors, you can't just keep doing what you're doing. you've got to really create a short squeeze from the tender offer. sell 25 million tvs. it's not scathing, but it says, all right, tim, i've been around forever. you are a newcomer. do it my way or the highway. >> what's the highway? >> i don't know. >> he's going to, what, launch a tender offer himself? at $800 billion? >> t

i'm taking in-depth look at alcoa and pepsi tonight.ht about earnings and guidance, both had tremendous weakness in europe. we saw the fed yesterday bring up the world economy, particularly europe. today the selling got ugly when maurio draghi, the past the ecb went to war with the european governments and said hey, you want too much cheap money, you must reform yourself. there's an old speech, recovery comes first and then reform, draghi said no, not in this environment, you must reform yourself, become a pro business environment and you'll have recovery. liz: and the markets didn't like that. they didn't like that at all. let me just say, there is a strong dollar impact. we were showing currencies, dan, all equities are getting slaughtered. i am looking at commodities. a couple. grains moving higher like corn. oats is higher, soybeans, not much else aside from the precious metals, a big flow fr from palladium to platinum to silver. as we look at bonds, there is a flight to quality and a fear moment. >> there's no doubt there's a fligh

maybe against the $14 play from long side. >> we have a strong beat from alcoa. morgan brennan with the break down from headquarters. >> reporting a rise in third quarter profit to 31 cents a share. ex items on aluminum beating street forecast of 23 cents per share. sales also rising to a better than expected at $6.24 billion and the company reiterating its outlook of 7% growth in groebl demand for the base metal. traditionally the first major company to report and because it supplies several major industries and autos and aerospace and seen as a bellweather for the broader economy and trading up nearly 2% in the after hours. back the you. >> all right. thank you. >>> as much as we like to say it's a belweather it's not been a bellweather. so what if anything is a read through here? >> the read through is probably closer to -- i mean, we know that they're going to be the ford pickups all aluminum and i think a lot of that's already in the stock. a stock up from $8 late last year. it's a double. done fantastic. up in the after hours. i don't think you necessarily

you talk about alcoa. you talk about aluminum. the stock is up almost 7%.amic leader, no doubt. liz: some big losers on the other side of the copy. it was a retail sector with trouble. >> interesting enough, urban outfitters with same-store sales weak once again. the gap got killed. it was down over 14%. abercrombie, american eagle, guess, also lower. for thh week, coach, i'm sorry, underarmor, zulily had winning weeks. david: homebuilders seeing a pop today as well as for the whole week. >> right. [closing bell ringing] building permits were a little less than expected. made it through the week, guys. we made it through. liz: we did, with a bit of flop sweat during this week. david: i love that expression. liz: one of the most volatile weeks we have seen in at least five years. let's look how stocks are finishing up the session. really the dow jones industrials was a shining light today. you can see end up 259 points, not the highs of the session. nasdaq today briefly came out of negative territory and pun of into positive for the year. today looks to be o

. >> i think you are advancing towards what pete said as far as alcoa on the eighth and the elon musking what's behind the garage door on the 9th, the very next day. those are two big movers cards alcoa is a big part of whether it is rail corp or whatever rksz these new rail cars that they have lighter weight with a dual container and things like that to avoid spills on the trains, another reason to own those. >> we are checking in on our battle for trader of the year. joe terranova in the lead. >> looks like a tie to me. >> this is true. >> murphy moved up. terranova hanging on to the lead. pete, you are in fourth. i am in fifth but outperforming the mid cap 400. >> and pete you haven't made moves all year. you are running out of time. you going to sit on this. >> i think there are opportunities towards the end of the year. i have watched guys at their level of trading and i think they are in a little bit of trouble as they approach the final couple of months. >> same thing. i will be able to flip the portfolio around or double up on some trades. >> what looks attractive in the portf

we had a terrific report from an alcoa factory. ms. morgan did it. i've been looking at alcoa. it's doubled. i wish it hadn't doubled ahead of this quarter. what numbers can it put up that will make it so it doubles again? it's just very difficult to get into a lot of stocks that have gone up, and much easier to say let's wait for a pullback. i'm not being a wuss. i love the market a long time. i want a pullback. i don't want a fannie mae pullback. >> those are incredibly speculative stocks. yesterday the common and preferreds got completely crushed, but why do you think that had a broad impact on the market? market capwise, there is not much there. >> did you see the volume? there are a lot of people who have been speculating whether it be fannie mae or gopro where there is unlocking of stock. >> 5.8 million shares of gopro unlocked, earlier than anticipated. >> speculators are coming back immediately. tesla, netflix. i don't want to see a lot of speculation. yesterday one of the things that bothered me and i like this group and think it is a buy, the defense stocks got killed

>> he's given the spotlight, if you took that microscope and put it on the nhl or the nba or alcoa or coca-cola, or my firm, you may fine similar things. i think if the attention instead of just focusing on goodell whether he should be move or not is instead on 2.1 million americans who are subjected to reported cases 1.3 million tore women. if that's the culture we're trying to change meaning the next generation it becomings tabu to use physical force in the domestic setting that would be a goodbye product. >> the incident is for the nfl to take the leadership role and be the trendsetter here. >> in your introa monica, it oh, introa, monica, it only happen because of video. >> he just negotiated an extra half billion dollars for the nfl for their television contracts in the coming years and that's what owners are concerned about. >> you're a form are player, do you think there's any sight in end on the issue. >> if you looking at athletes i think you're right, whatever the athletic, it's an institution grounded in violence. to think they are not going to solve their problems in life.

something that would fly by ppg, alcoa, and honeywell, all of which soared today. nonresidential construction is the big enchilada when it comes to capital good spending, lifeblood of the industrials. finally, aerospace, which had been clobbered by the declines in the airline stocks caused by overblown fears about ebola, is now finally getting some lift. we get results from boeing tomorrow. you know what, i can't imagine a scenario when this company reports back-to-back weak quarters. we know from alcoa and honeywell, aerospace remains a growing space of the economy. which is good. air fairs are now going higher. isn't that incredible? no, when you have an oligopoly, that's what happens. it's terrific for airplane orders down the road. here's the bottom line. it's needless to say that the united states has been a source of growth for all of these industrial companies, for some time. but, if we get continued geopolitical lift worldwide, then these stocks, many of which have been crushed, can go higher still, making the industrials such a beaten down group going into

. >> not alcoa. >> alcoa is great.arnings but the big companies are getting their money back by investing buying back their own stock and building up balance sheet. david: todd, you know agree with you on fed. it is ridiculous trying to get to 2% inflation when investors would lose money at 2% inflation. at least savers would. nevertheless consumer sentiment today, way up. people are buying with more money in their pocket because the price of gas is going down. doesn't that mean earnings reflect more than what the fed is doing? >> i really hope they do. but i don't think they do. i hope they do. i'm an american. i want capitalism. however, i don't think they are. i think we still see a lot of people out of work. still see a lot of problems in the economy. remember, up at top it is us a the best. when it goes down, upgrade the top and to the bottom. liz: we had at top were markets, david. today it was incredible rally day. an amazing day for equities. david: great day to have todd horowitz in studio. thanks, todd. liz:

look for minutes from last month's fed meeting later today and earnings from alcoa.he dow dropping 272 points to 16719. nasdaq losing 69 to 4385. teenagers love to shop as we know but fickle buying habits can boost or burst retailers' fortunes. piper jaffrays out with the latest teen retail survey, finds that most kid own a smartphone, no surprise, but two-thirds have iphone and most are loyal to the apple brand, saying their next phone will also be an iphone. but few teens have a smartwatch and 16% are interested in paying that $350 price tag for the apple watch. piper jaffray says concept of wearing a watches foreign to teens. back to you guys. >> always have it on their phone, the time. >>> new video this morning of a blood moon eclipse. this happened less than an hour ago as the full moon turned red. eclipse happens when the earth's shadow covers the moon, which takes on a reddish hue due to the earth's atmosphere. the next lunar eclipse in april. this was a treat for anybody out to see that. >> what a perk being up at 3:30 in the morning. >> if i had the inner s

particularly with them coming out with their best-selling video, the new f-150, which they're teaming up with alcoan. i think that's an interesting situation. general motors wi, i'm not quits enthusiastic. >> so you would prefer it to go to automakers? >> yeah. time for the final call. dan? >> i don't really think we're going to have this massive beta move in the s&p 500 and large caps, but if you are inclined to think we get a little bump back to 5,000 and hold there, but stormier clouds in the first quarter, i like that s&p, the s&p y put count that i laid out. >> mike? >> i also like calendars. i might be inclined to do one on the russell, iwm, which is actually the sector which has been underperforming where greater volatility might be priced in. >> all right. looks like our time has expired. i'm melissa lee. for more options action, check out the website, optionsactions.cnbc.com. we'll see you back here next friday at 5:30. in the meantime, "mad money" starts right now. >> announcer: the following is a paid presentation for body beast, the fast, proven way to build muscle, shed fat, and sculpt

which they're teaming up with alcoa on. i think that's an interesting situation.eneral motors, i'm not quite as enthusiastic. >> so you would prefer for an oil trade to actually just go to automakers. >> yeah, for where we are right now. >> time for the final call. the last call from the options pits. dan. >> yeah. i don't think we we're going to have this massive beta move in the s&p 500 and the large caps but if you are inclined to think we get back to the 2,000 and hold there but you think we could have stormier clouds in the first quarter, i like the s&p put calendar they laid out for us. >> mike. >> yeah. i also like calendars. i might be inclined to do one of the russell though, iwm, which is actually the sector which has been underperforming where greater volatility might be priced in. in those near-dated options. >> all right. looks lime our time has expired. i'm melissa lee. for more on "options action" check out our website and we're on "fast money" every day. we'll see you back here next friday at 5:30. meantime "mad money" starts right now. >> the foll

alcoa and our cola -- a nontraditional approach to its results.ous for beating humans on jeopardy is being taught which is. -- is is peeling will being taught new languages. watson is bilingual. ♪ >> third-quarter earnings season is underway with cosco already coming in strong this morning. $1.58. i'll cola is out after the bell and we will be here to tell you whether the company beat or fell short of consensus. -- alcoa is out after the bell. michael mckee tells us that is the wrong way to look at it. >> this is a convention that has developed. does a company meet expectations? if so, the stock goes up. could go down if it goes the other way. that's not how people who know what they are doing think of earnings. let's pick a random company here. call it mapped company. their natures by tell you nothing about what the future price of a stock should be. they are backwards looking. they are what happened the last three months. not what's coming up in the next six months. in the second quarter, 68% of the s&p 500 companies beat expectations. that's no

watch alcoa. alcoa reported a great quarter.cked off earning season and kicked off the big decline. alcoa is sneaking back up. watch the banks. the banks weren't that bad. watch some of the insider buying and takeover names. walgreens and hertz. i think we need to get back out of the complete negative mind set that we were in and accept the knneutral mindset. >> you're not all of of a sudden giddy about the market? >> no, i have to say some things are good and some things are bad but i want to guy weakness. i no longer want to say we're going down big from here. i want to watch oil. every time oil gets near $80 you're going to have to be worried because then you get this kind of over all we're done as a renaissance in this country and i don't think the renaissance is over. that's important because big pharma was down but biotech is up. i expect a decent number. >> dow is down 92 points. let's get to bob pisani on the floor. good morning. >> good morning. dow is down 100 points. now down 92. tech leading the way to the downside.

we hear from alcoa, yum brands, as well, tomorrow.'s take a look at european markets following a weak session in asia, european stocks trading lower across the board. the ftse outperforming its shares being held by some of the miners. including rio tinto that it did reject glencore's offer. germany, underperforming. italy in focus ahead of that italian confidence vote. a make or break home for renzi. you see the italian markets down will 4% on the day. currently down around 1% or 33 points. wilfred. >> we get our first batch of earnings out of the u.s. on weapons, we have the unofficial start to earnings season, as well as costco's q4. later in the week, peppily ko, family dollar and infosys will report. >>> as chinese demand for fast food wanes on the back of a food supplier scandal, how will it impact yum brand earnings? the company expects a 13% sales decline in its most important market while its u.s. operation lagged. let's bring in stacey who joins us in studio. stacey, weakening demand from china, that's a concern for the minin

shares were up earlier, now they are down a little bit with 15 on alcoa.re price of ruby tuesday, casual dining chain and it made a profit after five quarters of losses. it is up $1, 18%. let's go to the confrontation between jason materra and lois lerner, on tape. >> you don't feel bad you were using the government as a weapon to try to crush political dissent? anything? >> could you call the police please? could you call the police? thank you. >> you don't like being targeted. doesn't feel good. doesn't feel good. you targeted conservatives. not even an apology. stuart: the young man you saw in the clinton did that video, he pursued lois lerner and appeared on this program yesterday and here's what he said what i suggested he was out of line, at ambush journalism. >> any journalism, want to ask the questions that they should be asking because it involves a clear case of public corruption. the could have easily gotten her, if she had been asked these questions over and over again since she took the fifth amendment. over two occasions allegedly one that wa

. >>> alcoa kicked off earnings season. it beat wall street expectations. stock is up 2%.ig mover. the gap. it announced the ceo is stepping down next february. >>> breaking news overnight. angry crowds protesting a new deadly police shooting in missouri. we have that dramatic new video next. when salesman alan ames books his room at laquinta.com, he gets a ready for you alert the second his room is ready. so he knows exactly when he can check in and power up before his big meeting. and when alan gets all powered up, ya know what happens? i think the numbers speak for themselves. i'm sold! he's a selling machine! put it there. and there, and there, and there. la quinta inns & suites is ready for you, so you'll be ready for business. the ready for you alert, only a laquinta.com! la quinta! [ male announcer ] over time, you've come to realize... [ starter ] ready! [ starting gun goes off ] [ male announcer ] it's less of a race... yeah! [ male announcer ] and more of a journey. keep going strong. and as you look for a medicare supplement insurance plan... expect the same kin

we have results from alcoa. that is a company you know i like. problem is i'm quite confident of the good number but so is everyone else. there lies the problem. it is now as loved as it was hated when it was at eight. if you own it terrific. if you don't own it let's wait. if you miss it you miss it. thursday is family dollar day. here is a dollar store the object of affection. if it has a good quarter the stock goes higher. if it is not that good i don't expect bidders to walk away. it is a good story. still worth owning. on friday like monday very few clues on how things are going. we will have to take them from wherever we can get them. this time from a company called fastenal. i have contended that most of our industrial weakness stems from companies that do business overseas. i have been wondering what happens when we see how a purely domestic industrial is doing? well, i bet it can be very solid. that is why fastenal is such a bizarrely important report. let's hear what this industrial has to say. here is the bottom line. the verdict reach

both alcoa and pepsi beat wall street estimates. seems all the focus is on global growth. traders with really watching 200 day moving average. that's 1904. we are still above that. and so this is still viewed as the healthy correction. and everyone has been saying the volatility would come back this fall when the fed was yearing the end of the quantitative easing and as growth in the economy remained weak. so this is almost textbook for what people were saying would happen. >> given very valuations have been, isn't volatility a good thing? at least a return to normal levels. the vix near 16 now. >> if it stays here, great. and if we up and down like that, down 270, up 270. no problem. just down 270, five days in a row and. >> i'll tell you whose happy about the volatility. is the banks. we'll start to see it in fourth quarter earnings in january because people weren't really buying or selling the melt up or the melt down. there were single trades seemingly moving the market at low volumes all throughout the first half of the year and even in the third quarter. but now that

alcoa reported other quarter. supported by steel cops. and here is the catch. agricultural companies are doing really well. ones doing fertilizers for rest of the u.s. they're doing fantastic. liz: one thing doesn't change, people have to eat. >> and grow corn. liz: give two upside surprises and two you expect to miss. which i worked in local news. we want bad first. the negative surprises. >> wynn resorts. surprisingly one of the casino operators, they have been doing really well but -- liz: i'm stunned you're saying this. elaine wynn was on the program and things sounded really good. >> even on the conference call there was a lot of optimism on the conference call. what i go further in, 70% of the business is based out of macau. liz: what is wrong with macau? they have issues, doesn't they. >> they have a lot of issues and government anticorruption drives, causing less vips to go to macau. wynn is one of higher end kazoo seen knows. they might get affected more than other casinos. liz: there is global slowdown. we have bifurcated situation, u.s. looks good an

. >> let's not forget alcoa last week. he was positive not only here in the u.s. but also he didn't change his global demand forecast for aluminum of 7% for the year global. and when you listen to diamond and wells fargo this morning, they actually had good things to say about the u.s. so i think what is happening scott is that portfolio managers have been trailing their benchmarks in a big way. it's ban tough month, past month and a half. so sentiment is so bad and that is actually a good thing though. andfy think if you don't think we're going in a recession and you listen to the ceos, that earnings are still good and you should be buying. >> you could possibly end up with what being the top of the stocks, that being the alibaba. you scoffed at the notion that could be the case. do you still want to fight that. >> i still scoff at it. but then we went back and changed it from calling a top on it to marking a top. right now it did mark a top, short-term. absolutely. but look tooth today what came out of the banks. that's where interest rates low. seeing improving

. >> you are saying the strong dollar, we already had the earnings from alcoa and pepsi were good. you would have thought that kind of company to have been hit by the strong dollar but it is not the case. >> the strong dollar didn't bite for most of the quarter. it was really the last third, the last month of the quarter. what we hear is we had a good quarter. revenue numbers were good. we are really starting to see a slow down in international sales because of the strong dollar. so that is what we are worried about and that is what you see particularly negative stock reactions to some of those earnings coming up even though the numbers will be good. >> so if e, if earnings goes down a little bit but the p in price goes down more thrks market therefore now has a more fair multiple. wouldn't that be a catalyst to bring people back in? >> yes, it is. and it will be fairly soon, i think. but we are not quite there yet. look where we are. look at the emerging markets. they are flat to up this month despite the fall in the developing markets because of what you said. their price to earn