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US Steel Stock Leaps As House Passes 'Once In A Generation' $1 Trillion Infrastructure Bill

U.S. Steel lead sector rivals higher Monday after House lawmakers voted in favor of President Joe Biden's $1 trillion infrastructure bill.

United States Steel Corp  (X) - Get Free Report shares jumped higher Monday after lawmakers passed a $1 trillion "once in a generation" infrastructure bill that will direct billions of investments into roads, rail and public transportation. 

President Joe Biden said Americans will see the impact of the public  works bill, which passed the House with 215 Democratic votes alongside the support of 13 Republican lawmakers, "probably starting within the next two to three months" as cash is allocated to projects around the country. 

Included in the bill, which the Senate passed the plan on August 10, are plans for around $66 billion in spending for rail and Amtrak, $110 billion for new roads and bridges, $39 billion for transit and around $73 billion for power grid upgrades. 

"The House has passed the #InfrastructureBill, which would provide roughly $1 trillion for upgrading the nation’s critical infrastructure," the United Steelworkers Union said through its verified Twitter account. "This is a big freakin' deal for us because Steelworkers supply America in so many ways!"  

U.S. Steel shares were marked 7.05% higher in early trading Monday to change hands at 27.92 each. Cleveland-Cliffs  (CLF) - Get Free Report shares were marked 6.5% higher at $23.80 each while Nucor  (NUE) - Get Free Report shares jumped 6% to $118.90 each. 

U.S. Steel posted record third quarter profits of $1.543 billion last month, with group revenues rising 155% from last year to just under $6 billion.

The group also boosted its dividend to 5 cents per share, a 400% increase from the prior period, and unveiled plans for a $300 million buyback. Capex plans for the next three years, U.S. Steel said, were pegged at $3.7 billion

Overall, U.S. mills -- including U.S. Steel -- have produced 71.4 million tons of crude steel so far this year, according to data from the American Iron and Steel Institute, a 20.26% increase from the same period last year. Average capacity utilization is now at 81.1%, up from just 66.8% over the same period last year.