Earnings season kicked off Tuesday with strong results from Alcoa. Although the aluminum maker's results have not influenced the broad market lately, trader Pete Najarian thinks this time around could be different.Najarian believes the company said something that no trader should miss.“The CEO mentioned China and talked positively about China,” says Najarian. That's a meaningful change.“All anyone hears is how bad China is. But Klaus Kleinfeld is talking about global demand growth at 7%. That’s pretty phenomenal. That tells us something about the global economy that we haven’t heard over the past month or two."
To Najarian, that data point suggests that materials stocks, which have led the market lower recently, may be oversold.
At the very least, Najarian says, “Maybe we’ll see a bottom in names like Walter Energy and other stocks that are trading near their 52-week lows.”
On a related note, Alcoa raised its 2012 global growth forecast for the aerospace market by 3 percent - that too is potentially positive.Page 1 of 5 | Next Page