Earnings season is just getting underway and the first major report out on Monday, from Alcoa, left many investors disappointed. The largest U.S. aluminum producer managed to cut its losses from $497 million during the same period a year prior to $201 million this quarter, but the market expected more from the company’s sales, which grew only 18 percent to $4.89 billion. By contrast, aluminum prices have risen by roughly 50 percent over the last year. Alcoa, a bellwether for the performance of the overall market, given the wide use of its product, did not set the right tone.

However, the outlook improved late yesterday when Intel (INTC), which is part of our Growth Portfolio, reported its first quarter results. By almost all measures, the results were impressive, with Intel having its best first quarter since the company’s founding in 1968. This suggests that other technology companies may be releasing strong figures this quarter as well; but with Intel’s market share of computer processors over 80 percent, the results more importantly serve as a proxy for end demand and perhaps a bellwether for economic health.Read more...