09:28 ET AA Slightly Beats Q2 Expectations
After the close yesterday, Alcoa (AA 10.87) reported second quarter earnings of $0.13 per share, $0.01 better than the Thomson Reuters consensus of $0.12.
Revenues rose 22.2% year-over-year to $5.19 billion, beating the $5.05 billion consensus.
The company said, "The top and bottom line growth was driven by higher volumes from stronger end markets and continued gains from our productivity programs. Based on this improved end-market demand, we are raising our projection for aluminum consumption from 10% to 12% this year."
FAST Tops Q2 Expectations
Fastenal (FAST 52.62 ) reported second quarter earnings of $0.47 per share this morning, $0.03 better than the Thomson Reuters consensus of $0.44.
On the top line, revenues rose 20.3% year-over-year to $571.2 million, above the $568.7 million consensus.
The company said, "Our original goal was to hit the $125 thousand per month store average by 2012. We believe the duration of the economic weakness could delay the timing of when we achieve the $125 thousand per month average by several years. However, the current economic weakness only serves to strengthen our belief in the 'pathway to profit'."
Wider-than-Expected Trade Deficit Reveals Strengthening U.S. Recovery
The U.S. trade deficit unexpectedly widened to $42.3 billion in May from $40.3 billion in April. The Briefing.com consensus expected it to fall to $39.4 billion.
Exports increased $3.5 billion in May to $152.3 billion while imports increased $5.5 billion to $194.5 billion. The goods deficit rose to $54.5 billion in May, up from $52.6 billion. The services surplus remained at $12.2 billion.
While the increase in the deficit will lower our second quarter GDP forecast, the details of the data suggest a strengthening recovery.
Businesses investment growth remains strong as capital goods imports increased by $1.96 billion in May, with $1.17 billion coming from the computer sector. Consumer goods and auto imports increased by a combined $4.8 billion.The only worrisome piece of information came from imports of industrial supplies and materials. These raw goods are essential for sustained production and a lack of demand for petroleum-based products drove imports down $2.2 billion. The drop in industrial supplies imports follows the recent trend in the ISM data that suggests a deceleration in manufacturing activities.
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