Alcoa, JPMorgan, Bank of America: Dow Winners (Update 1)
The Dow Jones Industrial Average finished 2012's first trading session sharply higher on Tuesday as strong economic data gave the bulls some room to run in the new year. The blue-chip index rose roughly 180 points, or 1.5%, to finish at 12,397. At its peak for the session, the Dow ran as high as 12,479, a gain of more than 280 points. Twenty-six of the Dow's 30 components rose on Tuesday with aluminum producer Alcoa(AA) posting the largest percentage increase, advancing 6.7% to $9.23. The Dow's big banks were also strong with Bank of America(BAC), adding 4.3% to $5.80; and JPMorgan Chase(JPM), rising 5.2% to $34.98. Traditionally the first Dow component to report its quarterly results, Alcoa is scheduled to deliver its fiscal fourth-quarter numbers on Jan. 9. The average estimate of analysts polled by Thomson Reuters is for a profit of 2 cents a share for the December-ended period on revenue of $5.79 billion. Bank of America shares were able to rally despite a research report from Keefe, Bruyette & Woods that said the bank could have a "material miss" in its fourth-quarter results because of its mortgage-related legal exposure.The bank is scheduled to report its fourth-quarter results on Jan. 19 and KBW expects Bank of America to post a loss of 3 cents a share for the three-month period. The average estimate of analysts polled by Thomson Reuters is for earnings of 18 cents a share in the December quarter on revenue of $23.67 billion. Caterpillar was another strong performer within the Dow, gaining 3.7% to $93.98. The heavy machinery manufacturer expects 10% growth in China's construction market, according to Reuters. Shares of Cisco rose 3.4% to close at $18.63 after JPMorgan upgraded the stock to overweight from neutral. The firm has a 12-month price target of $21 on the stock. --. >To submit a news tip, send an email to: tips@thestreet.com.>To follow the writer on Twitter, go to Alexandra Zendrian.>To order reprints of this article, click here: Reprints
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