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The Dow Is Falling, but the Losses Are Worse for Steel Stocks

The Dow Is Falling, but the Losses Are Worse for Steel Stocks


News is brought to you by Mr. Shailesh Karia


Published on 4th September, 2019


Welcome to new tariffs. The U.S. implemented new tariffs—which were announced on Aug. 23—on Chinese goods effective Sunday, while Beijing imposed import duties on $75 billion in U.S. goods.


The trade news is filling the information vacuum following the long weekend, pushing down stock futures. Dow Jones Industrial Average futures were off almost 200 points, or 0.8%. S&P 500 futures were down 0.7%. Nasdaq Composite futures had fallen 0.9%.


Not every company is caught up in the trade war. Stock in Cidara Therapeutics (ticker: CDXT), a biotech company that makes anti-infective drugs jumped more than 80% in premarket trading after management announced a partnership to commercialize on of its drugs: Rezafungin.


Trade is affecting steel, though, and steel stocks are struggling. ArcelorMittal (MT) and AK Steel (AKS) were down 3% and 4%, respectively, in premarket trading. Falling steel prices, slowing economic growth and the trade war are weighing on investor sentiment. China is the largest steel producer in the world and the U.S. in a net importer of steel.


ArcelorMittal shares, for instance, are down almost 30% year to date.


Source : https://www.barrons.com//


 





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