ArcelorMittal closed at $4.39 on December 3. Its market capitalization of ~$8 billion—one quarter of Arcelor’s price tag when Mittal acquired it in 2006.
Shake Shack stated that its limited-time offers, the ShackMeister Burger and Roadside Shack, have been “big drivers” for its ticket and traffic growth.
In 3Q15, Shake Shack’s management raised its guidance to 14 new restaurant openings in the domestic market in 2016.
Freeport’s energy business has been suffering from falling energy prices. To add to its woes, Freeport’s borrowing costs could rise if the Fed hikes the interest rate.
The US dollar could continue to strengthen if there’s a rate hike by the Fed in December. That could negatively impact copper prices and copper producers such as Freeport-McMoRan (FCX).
A rate hike by the Federal Reserve, if it does in fact happen, could put further pressure on copper prices in the short term. Any fall in copper prices would be negative for copper producers.
Yellen’s speech to the Economic Club on December 2 was regarded as hawkish by market participants. Commodity stocks reacted negatively, bracing for a possible rate hike at the December 15–16 meeting.
On December 2, 2015, Fed chair Janet Yellen spoke before the Economic Club in Washington, D.C. In this series, we’ll look at key takeaways from her speech and how a rate hike could affect Freeport-McMoRan.
Elliott Management plans to engage in a “constructive dialogue” with Alcoa’s board about Alcoa’s split transaction and “additional available opportunities to maximize shareholder value.”
If there’s a rate hike at the Fed’s December meeting, it could mean higher borrowing costs, which could make it even more challenging for aluminum producers.
Falling crude oil prices have negatively impacted aluminum. Different metals have varying levels of energy intensity, and aluminum has the highest energy intensity among the major metals.
It could be déjà vu for Alcoa (AA) investors after the OPEC meeting on December 4, 2015. Last year’s decision to maintain daily crude output had a negative impact on all commodities.
The aluminum industry is facing a severe downtrend on the back of the Chinese slowdown. But Alcoa (AA) saw some decent up movement in November with the stock rising more than 11.5%.
The prices of all the commodities have been falling for more than a year. Copper prices fell since February 2011 when it crossed the $10,000 per tonne level.
It could be a familiar sign for Freeport-McMoRan (FCX) investors when OPEC (Organization of the Petroleum Exporting Countries) meets on December 4.
The ECB’s meeting is scheduled for December 3. The ECB is expected to announce more stimulus measures to aid the sagging Eurozone economy.
After a short week due to the Thanksgiving holiday, US (SPY) investors are now in an event-driven week. This week’s events could also impact the FOMC meeting.
As of September 30, 2015, U.S. Steel had a net debt to EBITDA (earnings before interest, taxes, depreciation, and amortization) of 11.44.
U.S. Steel (X) has cut its EBITDA (earnings before interest, tax, depreciation, and amortization) guidance three times in the current year.
The current year has been a dismal year for U.S. Steel’s Tubular segment, which generated a negative per ton EBITDA of $533 and $234 in 2Q15 and 3Q15, respectively.