Oct 9 - The gate opens on third-quarter earnings with Alcoa's better-than-expected results but investors should be prepared for a few bumps in the road. Bobbi Rebell reports.
PLEASE NOTE: THIS EDIT CONTAINS 4:3 MATERIAL Top aluminum producer Alcoa posting a third quarter net loss. Metal prices have slumped and demand remains weak. But its stock rose on the news, because the results weren't as bad as feared. Yum brands shares also higher in after hours on Tuesday after the Pizza Hut owner's earnings came in better than expectations and the company raised its full year outlook. Both offering some relief after a string of negative pre-announcements. But even as third quarter earnings numbers begin to come out of the gate- there are still potholes in the road. According to Thomson Reuters StreetEvents - 49% of the companies in the S&P 500 blamed Europe for negative pre-announcements, 11 percent pointed fingers at the weak global economy, followed by the strong dollar and then finally the china slowdown. Thomson Reuters Analyst Jharonne Martis: SOUNDBITE: JHARONNE MARTIS, DIRECTOR OF CONSUMER RESEARCH, THOMSON REUTERS (ENGLISH) SAYING: "What is worrisome in corporate America is their exposure on foreign markets. How much they depend on doing business in Europe and China, especially because China is starting to slow down their economy." But all is not lost. While the markets have been pulling back amid the bad third-quarter earnings buzz- the tide could turn. Michael Woolfolk, Global Markets Strategist at BNY Mellon: SOUNDBITE: MICHAEL WOOLFOLK, GLOBAL MARKETS STRATEGIST, BNY MELLON (ENGLISH) SAYING: "The market is going to react negatively to it but I think we are looking to take profit right now in terms of the equity market. Once we've got past that I think that the details are going to be far stronger than the headline. Dow components, I think the Fortune 500 are going to come in better than expected. You will find that there are more companies that beat expectations than miss expectations, in the third quarter." Just like Alcoa and Yum brands - both of whom also expressed optimism about growth prospects, including opportunity in China. Bobbi Rebell, Reuters