Updated from 11:43 a.m. EDT with Tuesday market results and AK Steel forecastNEW YORK ( TheStreet) -- Shares of U.S. Steel ( X) dropped on Tuesday after the company warned it expects profits to soften in the fourth quarter as North American and European economies continued to struggle. The Pittsburgh-based company's shares closed Tuesday at $22.40, down 9.6%, on volume of 20.8 million, nearly double the issue's trailing three-month daily average churn of 11.5 million.
Shares of AK Steel ( AKS) plunged on Tuesday after the steel producer said it expects higher operating costs and lower spot market selling prices in the fourth quarter. The stock dropped nearly 14% to close at $7.47 as investors dumped the stock on its dim outlook for the current three-month period. "We anticipate lower average spot market selling prices and we expect higher operating costs," CEO James Wainscott said on a conference call, according to Reuters. Wainscott said he was optimistic beyond the fourth quarter, because of gradual U.S. economic growth and a sustained spike in automotive demand and sales. AK Steel beat bottom-line expectations for its fiscal third quarter but that wasn't enough to appease investors who are weary of a sector-wide deterioration. "Despite the challenges of a sputtering economy and extraordinarily high raw material costs, AK Steel reported operating income for the quarter," said James L. Wainscott, "Challenging global economic conditions have created strong headwinds for our company and our country." -- Written by Joe Deaux in New York. >To contact the writer, click here: Joe Deaux. >To follow the writer on Twitter, go to: http://twitter.com/JoeDeaux. >To submit a news tip, send an email to: firstname.lastname@example.org