This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Steel Winners & Losers: U.S. Steel

Stocks in this article: USX AKS NUE STLD WOR MT PKX

NEW YORK ( TheStreet) -- Investors unloaded shares of steelmaking concerns Tuesday after one of its bellwethers, U.S. Steel (X), appeared to toss a wet blanket on hopes of a speedy recovery in the industry.

The Pittsburgh company, along with Ohio's AK Steel (AKS), surpassed bottom-line expectations for their just-ended periods, with the former reporting a narrower-than-expected loss and AK swinging to a thin profit after losing money for three consecutive periods.

But U.S. Steel in particular offered a view of its business over the near term that appeared to show that some market expectations for steel producers may have been out of whack with reality.

One of the more pertinent lines from the company's press release read: "We remain cautious in our outlook for end-user demand as order rates in flat-rolled steel and in European markets have decreased from the third quarter, partly due to seasonal slowdowns, and we will continue to adjust production to meet our customers' demand."

Though the fourth-quarter typically marks a natural weakening in steel demand, business has been so anemic of late that seasonality "should be less of a factor," Michael O'Rourke, chief market strategist at the trading firm BTIG, said in an email.

He added that better-than-expected earnings from companies in other sectors early in the third-quarter reporting season "opened the possibility of a V-shaped recovery in earnings. In this industry's case, that possibility has been extinguished for the time being."

Tuesday afternoon, shares of U.S. Steel, which have been declining sharply since hitting a 52-week high of $51.65 in late September, dropped nearly 9%, or $3.50, to $37.08.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,778.15 +421.28 2.43%
S&P 500 2,061.23 +48.34 2.40%
NASDAQ 4,748.3960 +104.0840 2.24%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs