The steel sector was slammed after Goldman Sachs published a piece predicting lower prices for top steel producers.
In a key sector update, Goldman Sachs analyst Emily Chieng decreased her price target for U.S. Steel to $21/share, while downgrading the group’s rating to “sell” from “neutral.”
$X decoupled 8.65% on Wednesday but recouped 1.37% today. The stock is still up 25% YTD.
Steel futures got the boot too, pulling back from recent highs. Here is the weekly chart:
While the U.S. economy continues to hold up relatively well, investors remain fearful about China and other international economies. So, one of the markets they’re watching for clues as to what might be ahead is copper futures. 🕵️♂️
We spoke about copper in May when investors viewed its selloff as a bearish economic diagnosis. And now, it’s back in the news for a similar reason. 📰
Despite being a slow day overall, one chart in the commodities space had traders gassed up. Pun intended. 🙃
That commodity is gasoline, which is heavily tracked due to its impact on consumer confidence and the economy. And most recently, there’s been a significant decline in prices that’s helped cheer people up ahead of the holidays—case in point: the headlines below. 👇
After a strong run throughout the summer, it’s been a rough two weeks for energy-related commodities and stocks. Today, an accelerating decline helped bring the sector back to the forefront of investors’ conversation. Let’s take a look at why. 👇
In very short-term fundamental news, gasoline inventories surprised to the upside today on weak demand. That caused the commodity to extend its recent selloff. But more importantly, we also saw heating oil and crude oil selloff in tandem after holding relatively strong during gasoline’s pullback.
About a week after the chatter around gold began to pick up on Stocktwits, the shiny metal is hitting new all-time highs. But still, some are perplexed as to why it’s rallying. 🤔
Bears argue that gold should not be rallying in the current environment. After all, inflation continues to trend back toward the Fed’s 2% target, and the economy is holding up well thanks to a strong labor market and consumer spending. And with the risk-free rate still above 5%, some investors and traders argue there are better alternatives to gold and precious metals as a group.