Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Cliffs Natural Resources Inc (CLF), Peabody Energy Corporation (BTU), Caterpillar Inc. (CAT): 3 Stocks You Need to Watch in Today’s Dow Dance

Page 1 of 2

Yesterday the Dow Jones Industrial Average edged up 0.09% to 15,556 points, inching back toward Tuesday’s all-time high. The S&P 500 managed almost three times the gain, pushing the index closer to the Dow’s year-to-date leading position.

^DJI Chart

^DJI data by YCharts.

Cliffs Natural Resources Inc (NYSE:CLF)Cliffs Natural Resources Inc (NYSE:CLF) shares have shot up 6% in premarket trading on news of the mining company’s second-quarter earnings. Cliffs Natural Resources Inc (NYSE:CLF) beat revenue estimates of $1.41 billion by $80 million, and adjusted EPS clocked in at $0.82, 34% above analyst estimates.

Wall Street wasn’t aiming high with this corporation. Sales are down a seasonally adjusted 8.5%, while adjusted EPS plummeted 50% as mining companies continually find themselves between a rock and a hard place. But considering Cliff’s newest report and Peabody Energy Corporation (NYSE:BTU)‘s earnings win earlier this week, it seems that mining companies aren’t out of steam yet. Yesterday’s report coincided with a new International Energy Outlook report predicting a 56% uptick in global energy use over the next three decades. Mining companies’ share prices have trailed the Dow over the past 12 months, with Peabody Energy Corporation (NYSE:BTU) down 37% and Cliffs Natural Resources Inc (NYSE:CLF) lagging a whopping 78%.

^DJI Chart

^DJI data by YCharts.

Mr. Market may have overreacted, especially considering the international outlook in store for global companies like Cliffs Natural Resources Inc (NYSE:CLF) and Peabody Energy Corporation (NYSE:BTU). Non-OECD countries are expected to increase energy consumption by 90% by 2040, with China alone doubling the U.S.’ energy use in 2040.

Source: EIA.gov.

Getting back to the Dow, Caterpillar Inc. (NYSE:CAT) was among the index’s worst performers yesterday. Shares dropped 1.56% as the company continued to reel from a sales and earnings miss earlier this week. Caterpillar Inc. (NYSE:CAT) openly admitted that its short-term growth is nothing to love (2% this year), but if other better-than-expected natural-resources reports are any evidence, this latest sell-off may simply be the result of over-optimists (read: “China alpha bulls”) finally opting out. For mining companies and Caterpillar Inc. (NYSE:CAT) alike, investors will need to keep a close watch on commodities prices in the coming months, as well as global growth in key expansion areas like China.

Health or wealth — why not both?
Cliffs Natural Resources Inc (NYSE:CLF) and Caterpillar Inc. (NYSE:CAT) shares could continue their adjustments today, but investors will also need to keep an eye on Ventas, Inc. (NYSE:VTR)‘s  10 a.m. EDT earnings report. The health care REIT’s shares have moved from 5% gains to a 12% drop over the last three months, and year-to-date gains clock in at 6.8% so far.

Page 1 of 2
Loading Comments...