Industry Concerns Regarding Tariffs - Potential tariffs on steel, aluminum, and copper could hinder investments in AI infrastructure due to increased costs [1] - The imposition of tariffs aims to level the playing field, encouraging domestic steel production [4] National Security and Domestic Production - Domestic steel production is crucial for national security, enabling the construction of ships and missiles [3][4] - The ability to mine raw materials like iron ore and copper domestically is essential [5] Trade Practices and Government Subsidies - Concerns exist about foreign countries, such as China, Japan, and Korea, subsidizing their steel industries, leading to the dumping of steel and harming domestic companies [3] - Tariffs are proposed to counteract government subsidies provided to foreign steel companies [4]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investors often face challenges in determining the right entry point for fast-moving stocks, which can lead to investments with limited upside or potential downside [2] - A safer approach may involve investing in bargain stocks that have recently shown price momentum, utilizing tools like the Zacks Momentum Style Score to identify promising candidates [3] Group 2: ArcelorMittal (MT) Analysis - ArcelorMittal has shown a price increase of 9.3% over the past four weeks, indicating growing investor interest [4] - The stock has gained 27.6% over the past 12 weeks, with a beta of 1.63, suggesting it moves 63% more than the market [5] - MT has a Momentum Score of B, indicating a favorable time to invest based on momentum [6] Group 3: Earnings Estimates and Valuation - An upward trend in earnings estimate revisions has contributed to MT earning a Zacks Rank 2 (Buy), which is associated with strong momentum effects [7] - MT is currently trading at a Price-to-Sales ratio of 0.46, suggesting it is undervalued as investors pay only 46 cents for each dollar of sales [7] Group 4: Additional Investment Opportunities - Besides MT, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - Various Zacks Premium Screens are available to assist in identifying winning stock picks based on different investing styles [9]

Core Insights - Nucor Corporation will host a live conference call to discuss its second quarter earnings for 2025 on July 29, 2025, at 10:00 a.m. Eastern Time [1][2] - The conference call will be led by Leon Topalian, Nucor's Chair, President, and CEO, and will include a review of the company's financial results followed by a Q&A session [1] Company Overview - Nucor and its affiliates are engaged in the manufacturing of steel and steel products, with operations in the United States, Canada, and Mexico [2] - The range of products includes carbon and alloy steel in various forms such as bars, beams, sheets, plates, and more, as well as fabricated concrete reinforcing steel and metal building systems [2] - Nucor is recognized as North America's largest recycler and also brokers ferrous and nonferrous metals, pig iron, and hot briquetted iron [2]

Investment Rating - The report does not explicitly state an investment rating for the industry Core Insights - Supply-side reform in China is evolving, focusing on mid-to-downstream sectors rather than solely on upstream sectors as in previous reforms [2] - The current reform approach is more nuanced and balanced, addressing advanced capacity rather than outdated capacity [2] - The report anticipates a slowdown in China's real GDP growth to below 4.5% in the second half of 2025 due to diminishing export momentum and fiscal easing [11] Summary by Sections Supply-Side Reform - The current supply-side reform is characterized as "new wine in an old bottle," emphasizing the importance of demand for economic reflation [2] - The targeted sectors have shifted from SOE-dominated to POE-dominated firms, indicating a change in ownership dynamics [2] Economic Growth - China's real GDP growth is projected to decline to less than 4.5% in the latter half of 2025, influenced by fading export growth and fiscal easing measures [11] - The economy is expected to remain on a slow reflation path, indicating ongoing challenges in achieving robust growth [11] Housing Market - The housing market continues to face challenges, with elevated inventory levels in lower-tier cities and a persistent decline in housing prices [21] - The National Development and Reform Commission (NDRC) is considering expanding funding channels to address housing inventory issues, which may depend on various factors including funding size and developer selection [22] Fiscal Policy - The fiscal space in China is becoming more constrained, with major tax revenues and land sales underperforming against budget expectations [38][43] - The report suggests that China needs not only new stimulus measures but also a reformed growth algorithm to address structural issues in the economy [44] Reflation Strategy - The report outlines a "5R" reflation strategy, which includes measures such as expanding fiscal deficits, monetary easing, and social welfare spending to stimulate consumption [47] - The strategy aims for a gradual and uneven progress towards economic recovery, with various policy measures expected to be implemented by the end of 2025 [47]

Core Insights - Algoma Steel Group Inc. (ASTL) has achieved its first steel production at Unit One of its new electric arc furnace (EAF) project, marking a significant milestone for the company [1][8] - The EAF project is the largest industrial decarbonization initiative in Canada, enabling the production of green steel with potential carbon emissions reduction of up to 70% [2][8] - The steel produced is branded as "Volta," which is powered by Ontario's clean electricity grid, aligning with the increasing demand for environmentally friendly products [3][8] Company Performance - ASTL's stock has declined by 14.3% over the past year, while the industry has seen a larger decline of 23.8% [5] - Currently, ASTL holds a Zacks Rank of 4 (Sell), indicating a less favorable outlook compared to other stocks in the Basic Materials sector [6] - In contrast, other companies in the sector, such as Royal Gold, Inc. (RGLD) and Coeur Mining, Inc. (CDE), have shown stronger performance and higher Zacks Ranks [6][7][9]

Company Overview - Friedman Industries, Incorporated is a manufacturer and processor of steel products with operating plants in multiple locations including Hickman, Arkansas; Decatur, Alabama; East Chicago, Indiana; Granite City, Illinois; Sinton, Texas; and Lone Star, Texas [4] - The company has two reportable segments: flat-roll products and tubular products, with the flat-roll segment processing hot-rolled steel coils and the tubular segment manufacturing electric resistance welded pipe [4] Leadership Appointment - Gaurav Chhibbar has been appointed as the new Chief Operating Officer (COO) effective July 10, 2025, bringing a distinguished career in operations excellence, strategy, corporate finance, and M&A due diligence [1][2] - Michael Taylor, President and CEO, expressed confidence in Gaurav's leadership and strategic vision, which aligns with the company's future goals [3] Professional Background - Gaurav Chhibbar has extensive experience from roles at Boston Consulting Group, Metal Edge Partners, and Cargill, where he supported various sectors including financial sponsors and Fortune 100 firms [2] - He holds an MBA from The University of Chicago Booth School of Business and additional degrees in International Business and Engineering [3]

- We have tariffs pouring in at levels that we have never seen before, and they've only just started. That's really a small portion. It's mostly from cars and aluminum and steel, a little bit of lumber, but they'll really start in about another week.And then in about a month, they'll come in at levels that are extremely strong. And our country's making a lot of money. And our country made $25 billion last month. 25 billion.That hasn't done that in a long time. And a lot of that's done because of good manage ...

Company Overview - Cleveland-Cliffs (NYSE: CLF) is set to announce its earnings on July 21, 2025, with a consensus forecast of approximately $0.63 per share, indicating ongoing margin challenges despite cost-cutting efforts [2] - The company's current market capitalization is $4.8 billion, with revenue over the past twelve months amounting to $19 billion, and it has reported an operating loss of $1.2 billion and a net income of -$1.2 billion [3] Financial Performance - Revenues are expected to decline by nearly 4% compared to the same quarter last year, although early advantages from cost reductions and improved pricing are anticipated to begin reflecting in the second quarter [2] - The company is expected to remain unprofitable until full savings for the second half are realized and automotive demand strengthens [2] Earnings Reaction History - Over the last five years, there have been 20 earnings data points recorded, with 10 positive and 10 negative one-day (1D) returns, resulting in a 50% occurrence rate of positive 1D returns [5] - The median of the 10 positive returns is 5.7%, while the median of the 10 negative returns is -8.4% [5] Correlation Data - The correlation between 1D post-earnings returns and subsequent 5D returns is noted, which can inform trading strategies based on historical performance [6]

China racked up record steel exports in the second quarter, as flows from the world’s top producer defied expectations for volumes to fade under a barrage of trade measures https://t.co/oDjWI0OPr1 ...

J P M O R G A N Global Markets Strategy 05 July 2025 Japan Equity Strategy Last-minute tariff negotiations and Upper House election: What if reciprocal tariffs of 35% take effect? Japanese equities might see a spike in short-term volatility next week, depending on the outcome of US-Japan trade negotiations. With the July 9 negotiation deadline fast approaching, the market expects 8–10 countries to reach an agreement with the US, but if the US and Japan fail to reach a deal and reciprocal tariffs on Japan ar ...