Goodyear Tire & Rubber Company (NASDAQ:GT) down by 4.30%, Alcoa Inc (NYSE:AA)

Posted by Lynn Eisler June 3, 2013 0 Comment 1529 views


The Goodyear Tire & Rubber Company (NASDAQ:GT): Friday’s trading session saw The Goodyear Tire & Rubber Company (NASDAQ:GT) dropping by 4.30%. It opened at a price of $15.63 which reached an intraday high of $15.82 before heading down to close at $15.14 per share. More than 18.99 million shares were traded in the last trading session. This was above the average volume of 5.98 million that was measured over a 30-day period.

In recent days, a boost in GT shares has not dissuaded traders from betting on added gains and they have been piling onto bullish call options. On Thursday, the Goodyear Tire & Rubber Company (NASDAQ:GT)’s stock touched a 22-month high, on a strong share-volume. The options market has witnessed a significant leaning towards bullish call activity. What is interesting is that there is no specific news around the company that seems to have led to this action. When a company goes through a strong run such as the one that Goodyear has gone through over the last one week, there is a possibility of some protective put-buying activity taking place, to seal in the gains.

Alcoa Inc (NYSE:AA): Friday’s trading session saw Alcoa Inc (NYSE:AA) dropping by 0.12%. It opened at a price of $8.47 which reached an intraday high of $8.62 before heading down to close at $8.50 per share. More than 18.12 million shares were traded in the last trading session. This was above the average volume of 15.82 million that was measured over a 30-day period

Moody’s Investors Service has axed the credit rating of the largest aluminum producer, AA one level under investment grade. There has been a global dip in the price of the metal.  After touching a post-recession high in 2011, aluminum prices have been on the decline. Even though the aerospace and automobile industries have been going strong, it somehow is not sufficient for a notable profit recovery for the aluminum industry. Moody’s said that Alcoa Inc (NYSE:AA) would not be achieving investment-grade metrics within their rating boundaries.

The New York-based Alcoa has shutdown a large part of its high-cost smelting units, expanded its profitable segments and cut costs. However, aluminum prices have dropped due to the slowdown in China’s economy and a rise in global production of the metal.


About Lynn Eisler

Lynn Eisler is a national news reporter focusing on economic issues, data analysis and the financial health of state and local governments. Lynn has been honored with the H.L. Mencken Award for Investigative Reporting, the Champion of Justice Award for reporting on the drug war, and the John Hancock Award for business reporting. Lynn was also a Knight Medical School Fellow at the University of Michigan.

View all post by Lynn Eisler Visit author's website

Write Your Comment