Mining, Steel Stocks Surging in Premarket
ThinkstockNow that the United States has dodged the fiscal cliff, investors are expecting at least a boomlet in manufacturing and production. That means more energy and more basic materials. Coal and steel stocks are reaping the benefits this morning. United…
Now that the United States has dodged the fiscal cliff, investors are expecting at least a boomlet in manufacturing and production. That means more energy and more basic materials. Coal and steel stocks are reaping the benefits this morning.
United States Steel Corp. (NYSE: X) is up 4.7% in premarket trading this morning, Nucor Corp. (NYSE: NUE) is up 2%, AK Steel Holding Corp. (NYSE: AKS) is up 4.4% and ArcelorMittal (NYSE: MT) is up more than 2%. Demand has come back, especially from China, and now that the threat to a second U.S. recession recedes in the rear-view mirror, steel makers are looking good again.
Coal miners are not doing too badly either this morning, with Alpha Natural Resources Inc. (NYSE: ANR) up about 5%, Peabody Energy Co. (NYSE: BTU) up 4%, Arch Coal Inc. (NYSE: ACI) up 4.5% and James River Coal Co. (NASDAQ: JRCC) up nearly 6%.
Iron ore miner Vale S.A. (NYSE: VALE) is up nearly 4%, and other major mining companies like Rio Tinto PLC (NYSE: RIO) and BHP Billiton PLC (NYSE: BHP) are up 3.6% and 2.1%, respectively. Aluminum bellwether Alcoa Inc. (NYSE: AA) is up about 2% and rare earths miner Molycorp Inc. (NYSE: MCP) is up a whopping 8.5%.
Paul Ausick
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Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.
