Monday, June 7, 2010

Freeport-McMoRan (NYSE:FCX) Down As Metals Drop

Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX) has fallen today as prices of metals overall have dropped. As of 11:48 PM EDT, the stock was at $61.27, a $1.54 decline, or 2.45 percent.

This is all related to the macro-economic conditions in Europe and China, and most recently, with the new job creation numbers coming out that were highly disappointing in the private sector, with about 95 percent of jobs created being temporary census worker jobs, which are pretty much meaningless.

So with everything pointing to a continued slowdown and little if any economic growth, copper prices are expected to drop or grow very slowly in the years ahead. Gold on the other hand will be a strength for Freeport, although copper will be the primary driver of share price for them.

They could possibly divert more resources to gold, as there is a surety the gold bull market will continue on for years.

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