- U.S. metal stocks that benefited from Pres. Trump’s initial tariffs on cheap imports buckled today from the weight of the latest escalation between the U.S. and China: X -4.1%, AA -5.2%, AKS -2.7%, CLF -1.7%, MT -3.3%, CMC -2.2%.
- Steel Dynamics (NASDAQ:STLD) closed -4.6% and Nucor (NYSE:NUE) ended -2.4% even after both companies issued strong earnings expectations for the current quarter.
- Steel company earnings "have been strong as a result of the tariffs the administration put in place already. Investors are worried that with the trade war escalating today it's better to sell... and take profits," says Michael O'Rourke, chief market strategist at JonesTrading.
- If U.S. industrial sales to China are hurt, investors worry this would indirectly hurt demand for steel and other materials used in products such as agricultural machinery, O'Rourke adds.
- Among the leading industrial names, BA -1.2%, CAT -2%, DE -0.9%.
- ETFs: SLX, FOIL, JJUB
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Original article