Earnings season got off to a promising start this week when aluminum
producer Alcoa reported revenue and profits for the fourth quarter of
2014 that were well above what the market was looking for. But that
positive momentum ebbed a bit when the first big banks announced mixed
results for the period.
To support the economic recovery, the Federal Reserve will likely
maintain its “lower for longer” approach to interest rates in 2015.
There are few signs of an inflationary buildup that would push the Fed
toward sharp rate hikes.
As 2014 winds down, investors don’t seem to have much faith in the
trends they are seeing in the market. Yesterday’s good news is open to
reinterpretation as bad news today, even though the news itself hasn’t