Aluminum ETFs Follow Alcoa Lower After Results | ETF Trends

Exchange traded products that invest in aluminum followed Alcoa shares lower Tuesday morning after the Dow component reported quarterly results that disappointed Wall Street.

Alcoa said it swung to a profit in the first quarter as aluminum prices rose, but traders punished the stock and Alcoa shares were down about 6% in recent action.

The company said it sees a 12% increase in aluminum demand this year.

However, some Wall Street analysts think aluminum prices are set to take a breather.

BMO Capital Markets downgraded Alcoa to underperform after the quarterly results mostly on expectations of a weaker aluminum price in the quarters ahead.

“In terms of the industry outlook, demand for aluminum is rising in 2011 but so is supply,” BMO said in a research note.