Monday, December 20, 2010

AK Steel (NYSE:AKS), US Steel (NYSE:X), ArcelorMittal (NYSE:MT), Nucor (NYSE:NUE), Steel Dynamics (Nasdaq:STLD) Get Bullish Attention

The steel sector has gone somewhat bullish, even after recent guidance from some companies that disappointed investors. That hasn't stopped investor interest in AK Steel (NYSE:AKS), U.S. Steel (NYSE:X), ArcelorMittal (NYSE:MT), Nucor (NYSE:NUE), Steel Dynamics (Nasdaq:STLD), which ended Friday all positive.

Some of this is based on nothing more than moving up the other side of the correction that started earlier this year, but some of it is based upon a light but improved outlook for demand and possible supply contraints.

So while there are some indications of improvement, this appears largely to be speculation-driven movement rather than anything else, as evidenced by some heavy call buying on some steel companies last week like Steel Dynamics.

AK Steel closed Friday at $16.28, up $0.92, or 5.99 percent. US Steel closed at $58.90, up $1.71, or 2.99 percent. ArcelorMittal closed at $38.58, up $0.80, or 2.12 percent. Nucor closed at $44.58, gaining $0.23, or 0.52 percent. Steel Dynamics closed at $18.09, up by $0.46, or 2.62 percent.

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