Donald Trump

The United States is now gearing up for Donald Trump to take oath as its 45th President. Although Donald Trump’s victory sparked an initial selling spree on the Wall Street, markets recovered handsomely, and while investors in different sectors are contemplating what Trump’s presidency could mean for their investments, steel investors have no such worries—not for now, at least.

Why Donald Trump Could Be a Game Changer for US Steel Companies

Trump’s views

Trump’s views on most economic issues find close resonance with US steel companies. Trump appears to favor a more aggressive trade policy, regularly citing job losses as a result of imports from other countries, especially China. Steel giants U.S. Steel (X), ArcelorMittal (MT), and AK Steel (AKS) frequently list “unfairly traded steel products” as the biggest challenge for the US steel industry. Notably, Nucor’s (NUE) former Chief Executive Officer, Dan DiMicco, is among Trump’s economic advisors.

It’s no wonder that steel companies saw a sharp upward price action on November 9, the day after the election. U.S. Steel and AK Steel rose 17.2% and 13.9%, respectively, and the SPDR S&P Metals and Mining ETF (XME), which seeks to invest a diversified portfolio of US-based steel companies, saw an upward price action of 7.7% the same day.

Series overview

In this series, we’ll analyze how steel stocks could play out under Donald Trump’s presidency. We’ll look at the short-term and long-term impacts of Trump’s publicly stated economic policies toward US steelmakers, and we’ll examine the key challenges Trump could face in implementing his agenda.

Let’s begin by analyzing the short-term impact that Trump could have on the US steel industry.

Latest articles

Broadcom (AVGO) stock fell ~8.5% after markets closed yesterday following the semiconductor giant's fiscal 2019 second-quarter earnings release. It missed analysts' revenue estimate and cut its fiscal 2019 revenue guidance by $2 billion to $22.5 billion due to sluggishness in its semiconductor solutions business.

The SPDR Gold Shares ETF (GLD), which tracks physical gold prices, has underperformed the broader markets year-to-date, rising just 4.4% compared to the S&P 500’s (SPY) gain of 15.9% as of June 14. The sentiment for gold, however, has been turning around.

Safe havens such as Treasuries and gold were back in favor on June 14 as stocks fell due to rising tensions in the Middle East, concerns over growth, and the looming threat of the US-China trade war. The tech-heavy Nasdaq Composite Index fell 0.67% in the first hour of trading.

Lululemon (LULU) stock rose 2.1% on June 13 in reaction to better-than-expected first-quarter results and an upgraded outlook for fiscal 2019 overall. The company's first-quarter adjusted EPS grew 34.5% to $0.74 on revenue growth of 20.4% to $782.32 million. Analysts had expected EPS of $0.70 and revenue of $755.31 million. Here's why the outlook got an upgrade.

14 Jun

IEA Again Slashes Its Oil Demand Growth Estimate

WRITTEN BY Rabindra Samanta

As of 4:40 AM Eastern Time today, US crude oil active futures were at $51.83, ~4% below their closing level in the previous week. If US crude oil prices stay at those levels today, they'll mark their third week of decline in five weeks.

Amazon is discontinuing its Amazon Restaurants service, which has been delivering food for restaurants in parts of the United States. Amazon Restaurants launched in the United States in 2015 and entered the British market the following year. However, it met strong opposition in the British market.

172.31.38.64