Leading economic indicator and why things will start accelerating

gunby31gunby31 Posts: 5,777 Officer
Demand for Steel.

Here’s why US Steel is rallying almost as much as Twitter

The United States Steel Corporation. The name practically screams Old Economy. But the nation’s biggest steelmaker was giving social-media upstart Twitter a run for its money Wednesday, up nearly 20% after turning in second-quarter results that blew past Wall Street’s expectations.

The catalyst for the rally was the company’s take on steel demand and its conviction that the economy is truly getting stronger.

CEO Mario Longhi told analysts the market has “bounced back quite well,” especially demand for flat-rolled steel. He also said he expects the company’s third-quarter operating income to improve significantly as it ramps back up to normal operating levels. That signals that there is once again room to grow in a global steel market that for years has struggled with oversupply and, according to the Commerce Department, illegal dumping of low-cost steel into the U.S. market.

Longhi’s comments also coincide with strong second-quarter growth in U.S. gross domestic product reported this morning out of Washington, D.C. The latest GDP numbers build heavily on a surge in car and truck sales last quarter. Car bodies are, of course, stamped from flat-rolled steel. This backs US Steel’s own enthusiastic assessment of the market. (Flat-rolled steel accounted for 72% of US Steel’s total shipments last year).



  • snippersnipper Posts: 524 Officer
    the rich man's economy or the poor man's economy?
    Florida Stupid
  • rickcrickc Posts: 9,172 Admiral
    Well framers and sheet rock hangers are very much in short supply

    even the rejects are working

    Don't know if it is due to a pickup in work or the tea party
  • HomerSimpsonHomerSimpson Posts: 6,573 Admiral
    maybe, but I wouldn't go overboard here. We had a decent quarter over all but for the year the growth is less than this time last year, or the year before. Any statistical analysis will bypass a spike like US Steel's just had. Spikes are ok, trends are what's important
  • phlatsphilphlatsphil Posts: 14,632 AG
    what things?
  • gunby31gunby31 Posts: 5,777 Officer
    phlatsphil wrote: »
    what things?

    Jobs growth
    Corporate earnings
    Interest rates

    We just need to focus on how to better bring the lower and middle class along for the ride. We should start by raising the minimum wage to $15/hour and tax reform.
  • rickcrickc Posts: 9,172 Admiral


    and supply and demand will bring wages up
  • Ron@.38 Special[email protected] Special Posts: 6,893 Admiral
    Not everyone is worth $15 an hour. You wanna pay $10 bucks for a mcdonalds hamburger?
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