Market Sentiment - The fourth year of the bull market begins with skepticism and disbelief towards bullish investors, which has been a consistent theme throughout the market run [1] - Despite the skepticism, buying the dips has proven profitable for investors over the past 45 years [2] Market Performance - The Dow gained 238 points, with the S&P 500 advancing by 0.53% and NASDAQ climbing by 0.52% [3] - Initial concerns about bad loans at banks were alleviated by positive reports from several banks, contributing to market gains [3][4] Company Performance - American Express reported a strong quarter, which contributed to the market rally and countered fears of a decline due to bad bank loans [4] - The focus should be on individual companies rather than just the S&P 500 index, as many companies are performing well despite negative sentiment [5] Upcoming Earnings Reports - The upcoming week is expected to feature earnings reports that are believed to be better than anticipated, starting with Cleveland Cliffs, a steel maker [6] - The performance of Cleveland Cliffs will provide insights into the health of the real economy, which is influenced by Federal Reserve rate cuts [6]

Core Viewpoint - Cleveland-Cliffs (CLF) is expected to report a quarterly loss of -$0.48 per share, reflecting a year-over-year decline of 45.5%, while revenues are anticipated to reach $4.89 billion, marking a 6.9% increase compared to the same quarter last year [1]. Earnings Estimates - The consensus EPS estimate has been revised down by 22.6% over the last 30 days, indicating a significant reevaluation by analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock performance [3]. Revenue Projections - Analysts forecast 'Revenues- Other Businesses' to reach $158.71 million, a 5.8% increase from the prior-year quarter [5]. - 'Revenues- Steelmaking' is estimated at $4.72 billion, reflecting a 6.7% increase year-over-year [5]. - 'Revenues- Steelmaking- Coated steel' is projected to be $1.41 billion, indicating a 2.2% increase from the previous year [5]. - 'Revenues- Steelmaking- Slab and other steel products' is expected to reach $265.65 million, showing a year-over-year decline of 3.8% [6]. Steel Shipments - Total steel shipments are projected to be 4,274 thousand tons, up from 3,840 thousand tons reported in the same quarter last year [6]. - The average net selling price per net ton of steel products is expected to be $1,004.08, down from $1,045.00 a year ago [7]. - Steel shipments by product are estimated as follows: - Coated steel: 1,143 thousand tons, up from 1,078 thousand tons [7]. - Slab and other steel products: 409 thousand tons, slightly down from 414 thousand tons [8]. - Plate: 215 thousand tons, up from 173 thousand tons [8]. - Cold-rolled steel: 630 thousand tons, down from 635 thousand tons [9]. - Hot-rolled steel: 1,744 thousand tons, up from 1,400 thousand tons [9]. - Stainless and electrical steel: 132 thousand tons, down from 140 thousand tons [10]. Market Performance - Cleveland-Cliffs shares have increased by 19.1% over the past month, compared to a 1% increase in the Zacks S&P 500 composite [11]. - The company holds a Zacks Rank 4 (Sell), indicating expectations of underperformance relative to the overall market in the near future [11].

Core Insights - Whales have adopted a bullish stance on Cleveland-Cliffs, with 50% of investors opening trades with bullish expectations and 41% with bearish [1] - The price target for Cleveland-Cliffs is projected between $8.0 and $22.0 based on recent options activity [2] - The average target price from industry analysts for Cleveland-Cliffs is $12.75, with individual targets ranging from $11 to $14 [10][11] Options Activity - A total of 12 trades were detected for Cleveland-Cliffs, with 10 calls amounting to $343,998 and 2 puts totaling $65,950 [1] - The mean open interest for options trades is 10,166.5, with a total volume of 5,302 [3] - Significant options trades include bullish call options with various expiration dates and strike prices, indicating strong interest from investors [8] Company Overview - Cleveland-Cliffs Inc is a flat-rolled steel producer and iron ore pellet manufacturer in North America, primarily serving the automotive industry [9] - The company operates through four segments but reports under one segment, Steelmaking, and is vertically integrated from raw materials to finished products [9] Current Market Position - The current stock price of Cleveland-Cliffs is $13.72, reflecting a 4.1% increase, with upcoming earnings expected in 7 days [13]

Core Viewpoint - Market players are showing strong confidence in Cleveland-Cliffs, leading to a significant upsizing of a planned debt issue, which positively impacted the company's stock price, rising by 9% compared to the S&P 500's 0.6% increase [1]. Debt Issuance - Cleveland-Cliffs announced a new issue of senior unsecured guaranteed notes, initially set at $200 million, maturing in 2034, with an interest rate of just under 7.63% [3][4]. - The company later increased the total principal amount to $275 million, with an issuance price of approximately 102.8% of the principal, resulting in an implied yield of slightly below 7% for investors [4]. Financial Context - The steel industry typically requires substantial debt financing due to the high costs associated with owning and operating steel production facilities. Cleveland-Cliffs' long-term debt has exceeded $7.7 billion, largely due to its acquisition of Stelco in 2024 [5][6]. - The new debt issuance, while relatively small compared to total debt, indicates investor confidence in Cleveland-Cliffs' ability to meet its financial obligations [6].

CLEVELAND--(BUSINESS WIRE)--Cleveland-Cliffs Inc. (NYSE: CLF) ("Cliffs†) announced today that it intends to offer to sell, subject to market and other conditions, an additional $200 million aggregate principal amount of Senior Unsecured Guaranteed Notes due 2034 (the "Additional Notes†) in an offering (the "Additional Notes Offering†) that is exempt from the registration requirements of the Securities Act of 1933 (the "Securities Act†). The Additional Notes will be an issuance of Cliffs' existi. ...

Core Viewpoint - U.S. trade tariffs, while seen as a hurdle by many investors, are benefiting domestic firms in the basic materials sector, particularly in steel, due to increased local production and a trend towards onshoring [1] Group 1: Cleveland-Cliffs Inc. (CLF) Investment Potential - Cleveland-Cliffs Inc. has recently reached a new 52-week high, indicating significant upside potential that is not fully priced in [2] - The inclusion of electrical steel and stainless steel derivative products in Section 232 has made imports of these metals more expensive, allowing Cleveland-Cliffs to capture market share [2] - The current steel prices are near a five-year low, and with the Federal Reserve cutting interest rates, a new bull market cycle for commodities may be on the horizon [3] Group 2: Demand and Financial Outlook - As business and consumer spending recover due to lower interest rates, steel demand is expected to rise, benefiting Cleveland-Cliffs and leading to improved margins and earnings per share [4] - Analysts forecast a significant improvement in Cleveland-Cliffs' EPS, projecting a swing from a net loss of 50 cents to a 17-cent EPS by the second quarter of 2026 [5] Group 3: Market Performance and Institutional Support - Cleveland-Cliffs' stock has surged by 19.1% in the past month, outperforming the S&P 500 by over 15%, indicating strong investor support [6] - The company reported a record 4.3 million tons of steel shipments, showcasing the positive impact of tariffs on domestic demand [7] - State Street increased its holdings in Cleveland-Cliffs by 20.2% in August 2025, reflecting strong institutional confidence in the company's prospects [8] Group 4: Market Sentiment and Short Interest - The short interest in Cleveland-Cliffs has declined by 3.3% over the past month, suggesting potential bearish capitulation amid tariff uncertainties [9] - The company's role in the onshoring of various industries and the increased market share from Section 232 inclusion make it an attractive option for investors seeking a favorable risk-to-reward ratio [9]

CLEVELAND--(BUSINESS WIRE)--Cleveland-Cliffs Inc. (NYSE: CLF) will announce its third-quarter 2025 earnings results before the U.S. market open on Monday, October 20, 2025. The Company invites interested parties to listen to a live broadcast of a conference call with securities analysts and institutional investors to discuss the results on the same morning, October 20, 2025, at 8:30 am ET. The call can be accessed at www.clevelandcliffs.com and will also be archived and available for replay at. ...

Whales with a lot of money to spend have taken a noticeably bullish stance on Cleveland-Cliffs.Looking at options history for Cleveland-Cliffs (NYSE:CLF) we detected 8 trades.If we consider the specifics of each trade, it is accurate to state that 50% of the investors opened trades with bullish expectations and 50% with bearish.From the overall spotted trades, 3 are puts, for a total amount of $255,894 and 5, calls, for a total amount of $215,504.What's The Price Target?Based on the trading activity, it app ...

Core Viewpoint - Cleveland-Cliffs is currently experiencing financial losses due to a downturn in the steel industry, which presents a potential buying opportunity for investors willing to take on risk [1][5][12] Group 1: Company Performance - Cleveland-Cliffs shares have decreased approximately 60% from their 2022 highs, reflecting the cyclical nature of the steel industry [1][2] - In Q2 2025, Cleveland-Cliffs reported an adjusted loss of $0.50 per share, an improvement from the adjusted loss of $0.92 in Q1 2025 [5] - The company is implementing cost-cutting measures and has idled steel mills to navigate the current weak market conditions [5] Group 2: Industry Dynamics - The steel industry is highly cyclical, with demand for steel products typically increasing during economic booms and decreasing during recessions [3][4] - Steel companies' income statements are closely tied to economic activity, making their stock prices volatile [4] - The cyclical nature of the industry suggests that buying opportunities may arise when the market is down, as prices are likely to recover [4][11] Group 3: Comparison with Competitors - Cleveland-Cliffs utilizes blast furnace technology, which is more volatile and requires high operational capacity, making it less flexible compared to competitors like Nucor, which uses electric arc mini-mills [8][9] - Nucor has reported earnings of $2.60 per share in Q2 2025 and has maintained a consistent dividend increase for over 50 years, making it a more stable option for conservative investors [9][10] - While Cleveland-Cliffs may offer higher potential upside during recoveries, Nucor is likely to be a safer investment during downturns due to its operational flexibility [12]

Core Points - Mesabi Trust has initiated arbitration against Northshore Mining Company and its parent, Cleveland Cliffs Inc. [1] - The arbitration was commenced through the American Arbitration Association on September 26, 2025 [1] - Mesabi Trust is seeking damages and declaratory relief due to the idling of Northshore by the Operator [1]