Morgan Stanley Says Mining Stock Could Benefit From Tariffs

Core Viewpoint - Morgan Stanley upgraded Freeport-McMoRan Inc (NYSE:FCX) to "overweight" from "equal weight," while reducing its price target to $48 from $54, indicating a belief in balanced potential for the mining stock due to President Trump's copper tariffs [1] Group 1: Stock Performance - FCX was down 1.1% trading at $41.41, facing resistance at the 320-day moving average, which has fluctuated between support and resistance since the beginning of the year [2] - The stock has increased by 9.1% since the start of the year, despite a decline in late July related to initial copper tariff discussions [2] Group 2: Short Interest and Options - Recent stock rebound may be linked to short covering, with short interest decreasing by 24.5% in the last two weeks, now representing only 1.7% of the stock's available float, suggesting a potential loss of momentum in the short squeeze [3] - Options appear to be a favorable strategy, as the stock's Schaeffer's Volatility Index (SVI) of 35% ranks in the low 6th percentile of its annual range [3]