- Commentary -

October 5, 2009 (FinancialWire) (By Genevieve Hawkins) After a few brutal weeks of economic reports investors might be happy that Alcoa (NYSE: AA) is kicking off third quarter earnings season this Wednesday. Last week’s unemployment numbers provided a somber reminder that the economic recovery isn’t going smoothly; the Dow and S&P 500 both dropped 1.8% for the week while the Nasdaq slipped 2.0%. October is traditionally a dangerous month for Wall Street, and investors should expect a bumpy road ahead.

Third quarter earnings will begin to trickle in this week, and these may provide some relief from dour economic reports. Earnings are expected to improve slightly from those reported in the second quarter, but expectations may be missed due to less aggressive cost cutting measures by many companies in the third quarter. Investors may also pay attention to what fed chairman Ben Bernanke says about the economy in the coming week.

Investors betting on a quick economic recovery may have gotten ahead of themselves-home sales and car sales benefitted from warm weather and massive government incentives over the summer. With these expiring as cold weather hits and as people continue losing jobs, economic numbers may slip again. All of this indicates that it may be another rough autumn for Wall Street.

[Go to http://www.financialwire.net/?s=genevieve+hawkins to see more commentaries by Geneveive Hawkins.]

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The FirstAlert(tm) Economics Calendar lists Treasury auctions 3&6-month bills (11:30 a.m.), ISM Services Index for September (10 a.m.), Treasury acutions 10-year TIPS (1 p.m.).

The FirstAlert(tm) Events Calendar showcases  ATV, BBI, CMRG, SCVL at Brean Murray, Carret & Co. Consumer 1×1 Conference; IDIX, CELG, GIVN, HWAY at JMP Securities Healthcare Focus Conference; IMGN, FUQI, MITI at William Blair & Company Emerging Growth Stock Conference.

FirstAlert(tm) Website of the Day: http://www.animatedknots.com/index.php

Quote of the Day: “Well, there doesn’t seem anything else for an ex-President to do but to go into the country and raise big pumpkins.” Chester Allen Arthur

Today is: Republic Day in Portugal, International World Teachers’ Day.

Happy Birthday: Chester A. Arthur, Robert Goddard, Ray Kroc, Glynis Johns, Bill Dana, Steve Miller, Bernie Mac, Michael Andretti, Kate Winslet, Nicky Hilton.

Today in History: Due to the implementation of the Gregorian calendar, this day did not exist in 1582 in Italy, Poland, Portugal and Spain. The Indian city of Calcutta was almost totally destroyed in 1864 by a cyclone. Chief Joseph surrendered his Nez Perce band to General Nelson A. Miles in 1877. The World Series was broadcast on the radio for the first time in 1921. The first televised White House address was given in 1947 by U.S. President Harry S. Truman. The first US television station, WSAZ in Huntington, West Virginia, began broadcasting in 1949. The Beatles released their first single, “Love Me Do,” in Britain in 1962.

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