Freeport-McMoRan Inc (NYSE: FCX)
Freeport-McMoRan started the day off in the red today. However, that didn’t last long. The stock has been on a high momentum run toward the top almost since the opening bell. Below, we’ll talk about what we’re seeing from the stock, why, and what we’ll be watching for with regard to FCX ahead.
What We’re Seeing From FCX
As mentioned above, Freeport-McMoRan was in the red when the opening bell rang. However, that changed quickly. Since the bell rang, the bulls have been making strong bets, pushing the stock into the green and then further up. At the moment (11:01), FCX is trading at $15.81 per share after a gain of $0.69 per share (4.56%) thus far today.
Why The Stock Is Gaining
As usual, as soon as we noticed that FCX was climbing, the CNA Finance team went to work to see if we could uncover the cause. It didn’t take long at all. There’s some news on the demand side, and some news on the political side, and they’re both pushing the stock up. However, the first thing that you need to know is that Freeport-McMoRan makes its money in copper. Therefore, when copper goes up, so does the stock.
With that said, there have been several reports surrounding copper lately. Each and every one has suggested that demand for the metal is likely to increase in China. With China being the highest demand region, that means that the price of copper is likely to climb. This, in conjunction with promises made by Donald Trump, is leading to a rally in copper and, therefore, FCX.
What We’ll Be Watching For Ahead
Moving forward, we’ll be keeping a close eye on what’s happening with Chinese copper demand and Donald Trump’s follow through as President of the United States. Any news from either of these stories can lead to big movement in FCX. We’ll be watching the wire and letting you know when anything new breaks!
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[Image Courtesy of Pixabay]