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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