Alcoa’s fourth quarter earnings have marked the unofficial start of the earnings season. Reuters has reported that S&P 500 earnings are expected to have risen by 7.8% on the year, down from a July forecast of 17.6%. Amongst those reporting earnings this week, there are a number of heavily shorted stocks. • Short interest in Alcoa Inc falls to annual lows of 2% of total shares. • Supervalu Inc is the most shorted large cap’ stock reporting earnings this week, with 30% of total shares outstanding on loan. • Lennar Corp is the first of the large house builders updating the market. Short interest has reached a new high of 17% of total shares. • Short interest in Synnex Corp rises to 8% of total shares Less