MidnightTrader Analyst Play: Alcoa

Alcoa (AA | Quote | Chart | News | PowerRating) closed down 8% at 39.34, extending its pre-market decline.

The stock fell 2.8% in pre-market action after JP Morgan reduced its rating on the stock to Neutral from Overweight. The downgrade follows an analyst meeting, at which Alcoa's new chief executive, Klaus Kleinfeld said he plans to increase Alcoa's size rather than streamlining the aluminum producer.

In two analyst actions we tracked on AA, the stock once extended its early share move and once reversed its pre-bell move in the following regular session.

6/11/08 Pre-Market: -2.8%; 6/11/08 Regular Session: -8.0% at 39.32 - JP Morgan cuts rating to Neutral.

9/5/07 Pre-Market: +0.8%; 9/5/07 Regular Session: -0.3% - Merrill Lynch upgrade to Buy from Neutral.

Brooks McFeely is widely regarded as the leading expert on extended-hours trading. He is a Managing Partner for Brochet Capital Partners, LP and the founder of Midnight Trader, Inc. (www.midnighttrader.com), the leading provider of pre-market and after-hours trading analysis and news to retail and institutional investors.