NEW YORK (TheStreet) -- Steel stocks rallied today despite disappointing news from the third largest U.S. steel maker -- Nucor (NUE) -- that its guidance had missed analysts' estimates. This was trumped by news that the world's largest steel maker ArcelorMittal (MT) was increasing prices on its hot rolled coil to $33 per hundredweight and coated products to $39.50 per cwt.
Steel stocks responded by increasing across the board. U.S. Steel (X) was up 1.3% to $25.50. AK Steel (AKS) was up 6.5% to $6.52. Steel Dynamics (STLD) finished up 1.5% to $16.93.
Steel has been down big overall this year and Credit Suisse downgraded earnings expectations for the sector on Friday.
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TheStreet Ratings team rates ARCELORMITTAL SA as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate ARCELORMITTAL SA (MT) a HOLD. The primary factors that have impacted our rating are mixed ? some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, revenue growth and notable return on equity. However, as a counter to these strengths, we also find weaknesses including poor profit margins, weak operating cash flow and a generally disappointing performance in the stock itself."