Two Ways To Play: Steel in the Spotlight
Strengthen your portfolio in good times and bad.
Steel is headed for a rebound next year. This according to ArcelorMittal's (MT) Lakshmi Mittal, CEO of the world's largest steelmaker. Mittal was quoted in a Bloomberg column saying inventory levels are low and that demand could begin to improve as soon as the first quarter - at which point his company would start increasing production.
His new comments stand in contrast to predictions made last month about the output of flat carbon steel falling as much as 35% in the US and 30% in Europe. At the time, the company also said it could cut as many as 9000 jobs, or 3% of its workforce, as demand slumped due to the global recession.
Worldwide crude steel production dropped 12.4% in October.
From the Bull Pen: Is ArcelorMittal showing signs of a bottom? Those bullish can set an initial starter position near $20, with a sell stop below $19.
From the Bear Cave: The better bear play might be down the line. Consider Toyota (TM) with a buy stop above $60 resistance.
Quick Check Around the World
Asian trading closed with the Hang Seng 2.49%, Nikkei -0.08%, Sensex -2.87%, Taiwan -0.70% and Shanghai 0.86%.
Glancing towards Europe, we see the CAC -3.38%, DAX -2.99%, FTSE -1.42%
As of 8:30 a.m. EST, S&P futures are trading -17 to 829, and Nasdaq futures are -23 to 1125.
A Look At Commodities
Crude oil is trading -0.29 to 43.39. Gold is +0.10 to 763.90. Silver is -0.171 to 9.320 and copper is -6.60 to 138.60.
The dollar index is +0.666 to 87.110.
On the Radar
08:30 Change in Nonfarm Payrolls
08:30 Unemployment Rate
08:30 Change in Manufacturing Payrolls
08:30 Average Hourly Earnings MoM
08:30 Average Hourly Earnings YoY
08:30 Average Weekly Hours
03:00 Consumer Credit
Happy Friday! Good luck and have a great weekend!
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