US stocks rallied on Tuesday to bounce from a 2-day decline as financial results from Alcoa helped ease some investor worry regarding the corporate earnings season.
Alcoa reported a higher-than-expected quarterly profit due to automotive demand, higher aluminum prices and lower energy costs. The stock opened higher but was last trading little changed at $16.18.
The metals maker reported fourth-quarter adjusted earnings per share of 33 cents, up from 4 cents a share in the year-earlier period, and beating analysts’ forecast. Revenue also beat expectations at $6.38 billion, up from from $5.59 billion a year ago mostly from diversified automotive and aerospace returns.
With a 1.2% increase over the past day, the cash price of primary aluminum was the biggest mover on the LME, closing at $1,798 per metric ton on Monday, January 12. The cash price of primary Indian aluminum fell 1.1% to INR 113.00 ($1.82) per kilogram. After rising 0.9%, prices settled at $1,818 per metric ton, driving an accelerated rise since Tuesday, January 6. Today marks the fifth day in a row of improvement for the 3-month price of aluminumon the LME.
Chinese aluminum prices were mixed for the day. The cash price of Chinese aluminum declined 0.4% to CNY 12,780 ($2,058) per metric ton. Chinese aluminum bar ended the day at CNY 12,790 ($2,060) per metric ton, after the 0.4% drop on Monday. The price of Chinese aluminum scrap remained essentially flat at CNY 12,200 ($1,965) per metric ton. For the fifth day in a row, the price of Chinese aluminum billet remained essentially flat at CNY 13,200 ($2,126) per metric ton.