AK Steel Holding Corporation (NYSE: AKS) is having an incredibly strong start to the trading session in the pre-market hours this morning, and for good reason. Investors are expecting an announcement from President Donald Trump to come very soon that will be great for the steel and aluminum industries as a whole. Today, we’ll talk about the news, what we’re seeing from AKS as a result, and what we’ll be watching for ahead.
AKS Gains On Expected Tariff Announcement
As mentioned above, AK Steel is having an overwhelmingly strong start to the trading session this morning as news breaks that President Trump and the rest of the White House will be making a big announcement relatively soon. In fact, a White House official recently said that President Trump will announce Tariffs surrounding the import of metals at a meeting that will take place today.
Interestingly enough, according to various reports, the Trump Administration invited executives from top steel and aluminum companies to the White House for the emergency meeting. This is overwhelmingly positive news for AKS and the rest of the steel and basic materials industry. At the end of the day, US companies within this industry have struggled due to lower cost, and often lower quality, competition from overseas. However, if tariffs are announced, the new cost of bringing metals in from overseas would give US-based companies like AKS a competitive advantage. So, it’s no surprise to see that the stock is headed up this morning.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is to watch the news. After all, the news moves the market. In this particular case, a tariff would be good, not only for AK Steel but for every United States-based steel or aluminum company. With the thought that Trump will be announcing a tariff today, it only makes sense that the stock is headed upward. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:02), AKS is trading at $5.54 per share after a gain of $0.38 per share (7.36%) thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will keep a close eye on AKS and the rest of the basic materials market. In particular, we’re interested in seeing if President Trump does indeed announce a tariff, and if so, what that tariff will be and how it will affect the bottom line for this company and others. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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