Freeport (NYSE:FCX) Earnings Report Should Reveal Economic Conditions

Although many were looking for Alcoa (NYSE:AA) to give some guidance as to economic conditions, Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX) will probably be a more accurate measure, although combined with Alcoa's numbers, could give a snapshot of where the economy really is at, against the numerous assertions and conflicting reports out there.

Tomorrow morning Freeport gives its earnings report, and it'll be especially important to see the copper numbers, although the secondary molybdenum and gold numbers will be important as well.

But taking into account the importance of copper in the global economy, that is the primary measure to look for from the point of view of economic conditions and where they have been at.

Just like the economies of Europe and the United States, China will be found to have slowed down some after the stimulus money wound its way through the system. Copper in the first quarter was up based on that, and the sales in the second quarter should give a real reading, or at least, more accurate reading of economic conditions when they're not being propped up by governments.

As far as sales goes, Freeport is expected to have sold about 830 million pounds of copper, 15 million pounds of molybdenum, and 270,000 ounces of gold

Analysts are looking for earnings of about $1.32 a share on $3.56 billion in revenue.