Two Ways to Play: Wall Street Puts a Dent in ArcelorMittal

By Terry Woo  FEB 10, 2010 8:35 AM

Strengthen your portfolio in good times and bad.


Investors putting a dent in ArcelorMittal

ArcelorMittal (MT) reported earnings for its fiscal fourth quarter. The world’s largest steelmaker said net income came in at $0.68 a share which may not be comparable to Wall Street estimates of $0.27 a share. But revenues fell 15% year-over-year to $18.64 billion, short of expectations of $19.01 billion.

In a story by Bloomberg, Chief Financial Officer Aditya Mittal blamed falling prices due to weak global sentiment and a lack of confidence in a full economic recovery. Shares are down over 4% in the premarkets; its biggest drop in six months.

From the Bull Pen: Consider looking into the steel ETF (SLX) instead. There’s very defined support at the $50 level. One can fade (read: buy) into that level with a sell stop below.

From the Bear Cave: Stocks have been rising as the picture in Europe gets a little less murky. But bulls don’t have an “all clear” signal just yet. Bears looking at the broader iShares global materials ETF (MXI), which has exposure to steel, consumer goods, and other industrial materials, can identify resistance near $60. So those willing to test the downside can look to that point with a tight buy stop above. If and when.

For more ways to play and other trading ideas from more than 30 top market pros, take a free trial to our Buzz & Banter.

A Quick Check Around the World

Asian trading closed with the Nikkei 0.31%, India -0.75%, Hang Seng 0.67%, Shanghai 1.14%, and Taiwan 1.10%.

Across the pond, we see the FTSE 1.10%, CAC 1.51%, DAX 1.34%

As of 8:22 AM EST, S&P Futures are trading +1.00 to 1067.50. Nasdaq futures are +1.25 to 1753.25.

A Look at Commodities

Over in commodities, crude oil is +0.01 to 73.73 while gold is +1.800 to 1079.00 this morning. Silver is +0.095 to 15.535 and copper +0.0010 to 2.9875.

The dollar Index is +0.0850 to 80.0900.

On the Radar


08:30 Trade Balance -35.0 bln. Cons.
10:30 Crude Inventories
02:00 Treasury Budget -$60.0 bln.

Click here for the full trading radar.

Happy Hump Day! Good luck!
No positions in stocks mentioned.

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