US Steel Advances on Record Q2 Results; Newmont falls as rising costs hurt earnings
Business

US Steel Advances on Record Q2 Results; Newmont falls as rising costs hurt earnings

admin


The materials sector edged higher this week, with both the S&P 500 Materials Index and the Materials Select Sector SPDR (XLB) rising 4%.

Below is a chart comparing materials sectors’ YTD performance to the S&P 500:

US Steel Advances on Record Q2 Results; Newmont falls as rising costs hurt earnings

Iron ore Futures rose over 7% in China on Monday, according to Reutersextension of an earlier rally sparked by hope for a economic recovery in the largest steel producer China. The most traded iron ore for delivery in September (SCO:COM) on China’s Dalian Commodity Exchange ended the day trading up +7.1% at 711 yuan/metric ton ($105.27) after earlier reaching 723.50 yuan, the best level since July 14.

Copper futures rose to their highest in two weeks on Tuesday on optimism over new infrastructure projects in top metal consumer China. On Friday, LME 3-month copper (HG1:COM) rose 0.6% to $7,808/tonne, hitting its highest since July 8. Other LME metals such as zinc, lead and nickel registered modest gains.

Gold prices rose 1% on Thursday after data showed an unexpected slowdown in the U.S. economy in the second quarter that helped boost the safe-haven metal. Spot gold (XAUUSD:CUR) settled at $1,768.57/oz on Friday, registering a 2.4% profit for the week. Last week, gold hit a near 16-month low after plunging to $1,680/oz. SA contributor Florian Grummes sees an imminent summer rally in the gold market, learn why.

Lumber prices (LB1:COM) fell 7% to $531.90 a barrel. thousand board feet on Tuesday as new housing data showed an 8% drop in new home sales in June, marking the lowest monthly sales since April 2020. The price was set at $527.10 per feet on friday, down ~8% for the week.

Take a look at this week’s top gainers and losers among basic materials stocks (market cap of $2 billion or more):

US Steel (X) took the top winning spot with one 17.96% growth. Shares rose on the company’s record second-quarter results and $500 million. share buyback plan.

Hecla Mining (HL) +17.66%; Sigma Lithium (SGML) +15.90%; First Majestic Silver (AG) +15.71%; and Steel Dynamics (STLD) +13.25% rounded off the winning list.

The week’s biggest decliners among basic materials stocks ($2B market cap or more) were:

Newmont (NEM) became the top falling, sliding -8.78% in the week. Shares plunged on weaker-than-expected Q2 earnings and cut the full-year gold production forecast.

Avantor (AVTR) -6.27%; Sherwin Williams (SHW) -6.13%; Tronox (TROX) -5.39%; West Fraser Timber (WFG) -5.18% rounded out the list of losers.

Other Materials ETFs to Watch: iShares Global Timber & Forestry ETF (WOOD), Materials Select Sector SPDR ETF, Vanguard Materials ETF (VAW), iShares Global Materials ETF (MXI), SPDR S&P Metals and Mining ETF (XME), VanEck Vectors Gold Miners ETF (GDX), iShares MSCI Global Gold Miners ETF (RING), Global X Copper Miners ETF (COPX).