|Day's Range||0.1200 - 0.1900|
Shares of U.S. Steel surged after reporting narrower than expected losses thanks to cost cutting measures. The company’s CEO also cited higher shipments of rolled steel for the quarter. Yahoo Finance’s Akiko Fujita and Ines Ferre discuss on The Ticker.
U.S. Steel Corp. said Wednesday it plans to reduce greenhouse-gas-emissions intensity across its global footprint by 20% by 2030. The reduction will be measured by the rate of carbon-dioxide equivalents emitted per ton of finished steel shipped, based on 2018 baseline levels. The steel sector is facing significant financial losses from future climate regulation, with the top 20 steel manufacturers at risk of a potential loss of 14% of their value by 2040, according to a report earlier this year from CDP, a sustainable-investing advocate. Existing steel-production techniques are already close to the limits of their efficiency, so meeting the goals of the Paris climate agreement, from which President Donald Trump is withdrawing the U.S., will require a radical change by the industry, the CDP alleges after analyzing the 20 top companies, worth a combined $259 billion. U.S. Steel shares fell about 2% in Wednesday trading; they're down 26.4% in 2019 to date. The S&P 500 is up 23% in 2019.
United States Steel Corporation (NYSE:X) today took another step in the execution of its strategy to become the “best of both” in the steel industry with the announcement of its plans to reduce greenhouse gas emissions intensity across its global footprint. The company has set a goal to reduce its global greenhouse gas emissions intensity by 20 percent, as measured by the rate of carbon dioxide (CO2) equivalents emitted per ton of finished steel shipped, by 2030 based on 2018 baseline levels. This target will apply to U. S. Steel’s global operations.
J.P. Morgan downgraded another steel stock Monday: TimkenSteel. The problem for the industry comes down to pricing.
United States Steel Corp. said it plans to eliminate some nonunion represented employees in the U.S., but declined to disclose how many employees would be laid off or when. U.S. Steel said the decision was made after a review of organizational structures, spending and work performance. “At the same time, we’ve been battling challenging market conditions, which means we need to truly become a leaner, more efficient organization faster,” said Amanda Malkowski, a communications analyst for U.S. Steel, in a prepared statement.
Today, U. S. Steel Tubular Products, Inc., a subsidiary of United States Steel Corporation (NYSE:X), announced that Vicki Hollub, president and chief executive officer of Occidental Petroleum Corporation, is the recipient of the Chief Roughneck Award for 2019. The announcement was made at the 90th annual meeting of the Independent Petroleum Association of America (IPAA). U. S. Steel Senior Vice President – Industrial, Service Center, Mining Solutions and Tubular Operations Douglas R. Matthews presented Ms. Hollub with the traditional Chief Roughneck bronze bust and hard hat.
"The containers, cargo, LNG and oil that travel on these ocean highways tell you what is truly happening," LaRocco writes. "Trade War: Containers Don't Lie, Navigating the Bluster" is a fine digest to bring readers up to speed and illustrates that LaRocco, the senior editor of guests for CNBC business news, knows her subject matter well.
In the last month, United States Steel (NYSE:X) stock has surged 30% already-from oversold levels. Still, the stock still remains underwater, down 27% year to date. That 2019 performance pales in comparison to the 4.7% year-to-date gain in the VanEck Vectors Steel ETF (NYSEArca:SLX), which holds 27 steel and related peers of U.S. Steel stock.I believe that the X stock is still in a downtrend and correction is likely to ensue after a brief rally. Macroeconomic headwinds and worsening of credit metrics are the key factors that will keep the stock subdued.U.S. Steel, being an integrated steel producer, is sensitive to fluctuations in the macroeconomic scenario. This is the first reason to remain underweight on the stock. Business fixed investments in the United States declined by 0.4% in the third quarter of 2019. This is in comparison to an average of 0.3% increase in business fixed investment in the prior four quarters.InvestorPlace - Stock Market News, Stock Advice & Trading TipsWith the private sector being the dynamic sector of the economy, it is clear that the slowdown has accelerated. Not surprising that the Federal Reserve has already cut interest rates three times in 2019.It is also worth noting that the global manufacturing purchasing manager index for September 2019 was 49.7. We are already in a manufacturing sector recession globally. The global services sector PMI was 51.6, but has been on a gradual decline. These are ominous signs for the global economy. * 7 Earnings Losers That Were Hit Hard This Season There are hopes that the trade war will continue to de-escalate as economic losses mount for both the United States and China. United Nations economists already warned that the trade war is a "lose-lose" situation for the world. De-escalation can provide some growth catalyst, but it's too early to expect renewed strength in the global economy. This is likely to have a negative impact on X stock. Worsening Credit Metrics for U.S. SteelWith clear signs of sustained economic weakness, I am concerned about the worsening of credit metrics. For Q3 2019, the company reported an adjusted EBITDA of $144 million as compared to an adjusted EBITDA of $526 million for the same period last year. During this comparable period, the EBITDA margin compressed by 900 basis points to 5%.The direct impact is on the company's cash flow and leverage. For financial year 2018, U.S. Steel reported operating cash flow of $938 million. Considering year-to-date 2019 numbers, the annualized cash flow is likely at $528 million.At the same time, the company's net debt increased to $2.1 billion in Q3 from $1.4 billion at the end of 2018. Further, U.S. Steel expects 2020 capital expenditures to be $950 million. With declining cash flows, it is entirely likely that debt will increase.Therefore, leverage has increased and I expect that to continue. It will translate into higher balance sheet stress in the coming quarters.I also want to point out that X stock is currently paying an annualized dividend of 20 cents. If the economic weakness persists in 2020, U.S. Steel is likely to suspend dividends. This can also result in stock re-rating on the downside. Final Thoughts on X StockAnother important reason to believe that X stock is likely to trend lower is the valuation. The stock is currently trading at a forward price earnings ratio of 60.54. If margin compression continues, the forward PE will remain expensive and makes the stock less attractive.Of course, forward valuations can change significantly when the industry recovers. However, I don't see that possibility in the coming quarters. The IMF opines that GDP growth in advanced economies will remain at 1.7% in 2020 after forecast growth of 1.7% in 2019. Therefore, 2020 can be equally challenging for U.S. Steel.Amidst all near-term concerns that will dominate the stock trend, U.S. Steel stock is worth considering in the range of $9 to $10. From a technical perspective, the stock is likely to find support at these levels. * 7 Under-the-Radar Retail Stocks to Buy Now Further, there is little doubt on the point that U.S. Steel has competitive positioning in high-margin end markets. This will help the company recover swiftly once GDP growth gains traction.I also believe that the company's investment in Big River Steel is likely to yield positive results in the long-term. Big River is a technology-oriented steel company with focus on new product development that caters to future demands from various industries. Big River Steel also boasts of the first Leadership in Energy and Environmental Design-certified (LEED) steel production facility.Overall, X stock is worth keeping on the investment radar, but the stock is not trending higher anytime soon. On the contrary, shares are likely to cool-off after a sharp near-term rally.As of this writing, Faisal Humayun did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks to Sell Before They Roll Over * 5 Beaten-Up Stocks to Buy That Could Be Saved By An Acquisition * 4 Startup Stocks Getting Smashed The post Expect More Pain Ahead for U.S. Steel Stock as Macroeconomic Headwinds Persist appeared first on InvestorPlace.
CLF and U.S. Steel Corporation are looking at electric arc furnaces, whose variable cost dynamics make them suitable for the cyclical steel industry.
Citi is bearish on iron ore and steel prices, expecting bad news for Cleveland-Cliffs (CLF) and US steel companies. This year, CLF stock is trading almost flat.
A better-than-expected jobs report thrust equities to new all-time highs once again, with the S&P 500 notching its fourth new high in five days. Let's take a look at a few top stock trades as the markets continue to roll higher. Top Stock Trades for Tomorrow No. 1: Alibaba (BABA)Alibaba (NYSE:BABA) is barely in positive territory following its earnings report, but the technical setup is not that appealing.InvestorPlace - Stock Market News, Stock Advice & Trading TipsShares tried to break out over the $180 level, but failed to hold onto its gains. The silver lining here? BABA stock is still above short-term uptrend support (purple line), as well as its cluster of major moving averages between $171 and $173.A move below uptrend support would negate the breakout, while a decline below its moving averages would be a sign of caution. Below $170 and uptrend support (blue line) is in play near $165. * 7 Earnings Reports to Watch Next Week Over $180 and the breakout is back on the table, with the first upside target being Friday's post-earnings high, followed by the September high of $184.13. Top Stock Trades for Tomorrow No. 2: Pinterest (PINS)For most of our pre-earnings setups, we don't need to revisit them a day later. For Pinterest (NYSE:PINS), though, the stock's major decline is forcing us to take a second look.Shares were down more than 25% at one point, just below the $19 IPO price. With Friday's sharp rebound though, bulls have a tradable low to measure against. On the upside, see if PINS can rally back to its prior post-IPO low near $23. Above that and it can fill the gap up toward $25.Below Friday's low and PINS is a no touch. Top Stock Trades for Tomorrow No. 3: AbbVie (ABBV)AbbVie (NYSE:ABBV) stock has been on fire, and Friday's post-earnings rally is only adding fuel to that fire. The stock is nearing overbought territory on a weekly basis, and has long since cleared prior downtrend resistance (blue line).Let's see if the 100-week moving average gives ABBV any issues, up at $83.50. Over it and the 52-week highs near $90 are on the table. If the 100-week moving average is resistance, see if ABBV finds support either at the 50-week or 200-week moving average.The stock was recently called a breakout buy for 2019. Top Stock Trades for Tomorrow No. 4: Chevron (CVX)Despite bouncing around on the day, Chevron (NYSE:CVX) is near flat after reporting earnings. This one has become a bit of a sloppy setup.The upside is clogged by a cluster of moving averages between $118 and $120. On the downside, the February gap between $112 and $113 has generally been support For CVX stock this year.Let's keep it simple.A dip into this zone can be bought, provided it holds as support. If it fails, a flush down to the $105 to $107 area could be in the cards. A break over $120 could send CVX up to $124-plus. Top Stock Trades for Tomorrow No. 5: U.S. Steel (X)Want to stick with the keep-it-simple approach? U.S. Steel (NYSE:X) is jumping on Friday, but running into an important level.If it moves over the $13 to $13.25 level and the 100-day moving average, X stock can continue higher. It puts the 78.6% retracement at $14.60 in play, as well as the declining 200-day moving average.If it falls below $13, lower prices may be in store. Top Stock Trades for Tomorrow No. 6: Funko (FNKO)It has been a while since we've talked about Funko (NASDAQ:FNKO). $17 and channel support both gave way on Friday, leading to a flood of selling. Shares are now near $15.Below the 23.6% retracement and near its session low, there's little confidence in Funko right now.Friday's move technically puts the $12 area in play, although it may take a while to flush down to that point. From here, see if FNKO can reclaim $15.15, the 23.6% retracement. Above it puts the underside of prior channel support in play. Below $15 and shares can remain under pressure.Funko is also a no-touch for me at this moment.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long PINS. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Buy-and-Hold Stocks to Play Investing's Biggest Trends * 7 Stocks to Buy in November * 5 Strong Buy Stocks Under $5 With Massive Upside Potential The post 6 Top Stock Trades for Monday: BABA, PINS, CVX appeared first on InvestorPlace.
CEO says the number-one strategic priority is the full acquisition of Big River Steel, an electric-arc manufacturing site.
U.S. Steel stock (X) is trading with sharp gains today after the company released its Q3 earnings. Here's why the market is so optimistic about X.
United States Steel reported third-quarter numbers after the close of trading on Thursday. They beat Wall Street expectations, sort of.
AK Steel (AKS) reported its third-quarter earnings on Wednesday in after-market trading. The stock fell sharply during trading on Thursday.
U.S. stock futures rise ahead of a U.S. jobs report that is expected to show a notable slowdown in U.S. job creation in October; Exxon Mobil, Chevron, Alibaba and AbbVie report earnings; Pinterest shares fall sharply after the company misses third-quarter revenue estimates.
US Steel shares surged the most in six months Friday after the struggling steelmaker posted a smaller-than-expected third quarter loss as domestic flat-rolled demand offset continued global steel market weakness.
U.S. Steel (X) delivered earnings and revenue surprises of 27.59% and 1.42%, respectively, for the quarter ended September 2019. Do the numbers hold clues to what lies ahead for the stock?
PITTSBURGH, Oct. 31, 2019 -- United States Steel Corporation (NYSE: X) announced today that its Board of Directors declared a dividend of $0.05 per share on U. S. Steel Common.
United States Steel Corp. shares rose 2.1% in the extended session Thursday after the company beat revenue expectations and reported narrower-than-expected losses. The company reported third-quarter net losses of $84 million, or 49 cents a share, compared with net income of $291 million, or $1.62 a share, in the year-ago period. Adjusted for restructuring charges, among other things, losses were 21 cents a share. Revenue fell to $3.07 billion from $3.73 billion in the year-ago period. Analysts surveyed by FactSet had estimated adjusted losses of 25 cents a share on sales of $3.05 billion. For the fourth quarter, analysts model adjusted losses of 57 cents a share on sales of $2.85 billion. U.S. Steel stock has fallen 37% this year, with the S&P 500 index rising 22%.
Net loss of $(84) million, or $(0.49) per diluted shareAdjusted net loss of $(35) million, or $(0.21) per diluted shareAdjusted EBITDA of $144 million PITTSBURGH, Oct. 31,.
United States Steel Corporation (NYSE:X) (“U. S. Steel”) today announced that it has completed its acquisition of a 49.9% ownership interest in Big River Steel (“Big River”) for approximately $700 million, which implies an enterprise value of $2.325 billion. “Today is a true milestone for our 118-year old company,” said David B. Burritt, President and Chief Executive Officer of U. S. Steel. “The closing of our investment in Big River brings us one step closer to creating a differentiated, world-competitive company that can offer our customers, employees and stockholders the ‘best of both’ integrated and mini mill steel making technology.