- U.S. Steel (NYSE:X) -2.5% premarket after BofA Merrill Lynch downgrades shares to Neutral from Buy following the stock's recent run higher, as Pres. Trump's tariffs were largely expected.
- BAML believes the tariff will have a limited benefit in 2018 due to previously contracted tonnage locking in lower prices, and the firm expects steel prices to slide by 2019 because of likely WTO challenges and threats of trade retaliation, domestic capacity restarts and potential demand degradation as downstream products containing steel content could be imported.
- J.P. Morgan's Michael Gambardella notes significant details around the tariffs, such as whether specific countries will be exempted, are still lacking so it is difficult to assess the ultimate impact on steel prices.
- Among other tickers on watch: AKS, NUE, CLF, STLD, MT, RS, WOR, CMC, SLX
- Now read: 2017 - Another Good Year For Our Portfolios, Core Portfolio Was Up 55.98%
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