Yahoo Finance Live's Julie Hyman and Brian Sozzi discuss first quarter earnings for aluminum company Alcoa.
JULIE HYMAN: On the flip side, though, we look at an Alcoa, which also reported. It was after the close yesterday. And here, you've got a different story, right? That's, in part, we have seen aluminum prices start to come down pretty sharply. The shares are down almost 8% this morning. Sales actually missed estimates. And the company basically seeing supply chain as a problem for it, and that Russia's invasion of Ukraine, according to the company, has made the supply chain crisis worse.
The CEO, Roy Harvey, said there is demand erosion because of what's going on with the supply chain, and that aluminum demand this year will grow by about 2%. The prior forecast was 2% to 3%. So this is a good reminder, I think, Sozz, that when we talk about commodities, right, and commodity inflation, that the picture is not monolithic, that you have to look at the individual lines to see what's going on.
BRIAN SOZZI: No, it's a very good point, Julie. And I'll add, too, early earnings season theme, at least for me, is just the demand environment. Very strong for so many companies. You look at Alcoa, you look at Dow, you look at the airlines we talked about earlier-- really, so far, overcoming the cost increases they are seeing.