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U.S. Steel: Can 4Q16 Earnings Jolt Investors’ Trump Hangover?

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4Q16 earnings

U.S. Steel Corporation (X) has been successful since Donald Trump was elected. Other steelmakers (XME) like AK Steel (AKS), Nucor (NUE), and ArcelorMittal (MT) also joined the party. Metals and mining stocks have staged a comeback on expectations of a revival in US demand. Trump’s election was one factor that helped fuel a rally in US steel prices.

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4Q16 earnings season

Trump’s presidency helped revive market sentiment and boosted steel stocks. The upward price action was a welcome break for steel investors. They saw their investment value erode in previous years. Notably, 2015 was nothing short of a nightmare for steel investors.

However, we should remember that in the medium to long term, earnings are a key driver of stock prices. The earnings season for steel investors kicks off today with AK Steel and Steel Dynamics (STLD). Nucor is expected to release its 4Q16 earnings on January 31, while ArcelorMittal’s 4Q16 release is scheduled for February 10.

Series overview

U.S. Steel is expected to release its 4Q16 earnings on January 31 followed by the conference call the next day. In this series, we’ll explore what Wall Street expects from U.S. Steel’s 4Q16 earnings. We’ll also look at the key points that U.S. Steel investors should watch for in the company’s 4Q16 earnings conference call. Let’s start by analyzing what Wall Street analysts expects for U.S. Steel’s revenues in 4Q16.

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