Jim Cramer speaks about what insights can be gleaned from Alcoa’s (AA) earnings release. Cramer told TheStreet’s Rhonda Schaffler that the reason investors need to pay attention to Alcoa’s earnings report is not for the company’s earnings numbers themselves, but because the company is in so many different industries, it is a good indicator for the health of a number of different companies ahead of their own earnings releases. Cramer says that Alcoa’s numbers in aerospace, turbines, trucks, residential and non-residential building are all end markets that provide good read-throughs into how other markets and companies are doing. When asked if the Alcoa numbers could lead to plays in other companies, Cramer said, ‘when you look at the auto build’ from Alcoa, ‘you want to find domestic autos.’ Using the Alcoa numbers as a jumping off point, Cramer says not to look to companies that make auto parts, but to companies like AutoZone (AZO) or O’Reilly Automotive (ORLY) that sell these auto parts. Cramer throws in that Snap-on Incorporated (SNA), the tool maker, is another read-through from the trucks number.
More from Video
Breaking down an approach to the long side of this biotech stock.
AMSC CEO discusses that and China challenges.
One of pharma's biggest CEO's talks M&A action on the exchange.
Citi overcame a mixed print to send its stock surging on Monday.