Cliffs Natural Resources Inc (NYSE:CLF) had yet another incredibly strong day in the market today. This was after several trading sessions of upward movement. Below, we’ll talk about what we’re seeing from the stock, why, and what I’ll be watching for with regard to CLF ahead.
What We’re Seeing From CLF
As mentioned above, Cliffs Natural Resources Inc (NYSE:CLF) had a strong start to the trading session today, following up on recent gains. When the opening bell rang, the stock quickly found itself in the green. Since then, it edged further and further up throughout the session. CLF ended the session trading at $9.91 per share after a gain of $0.71 per share or 7.72% thus far today.
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Why The Stock Is Edging Up At The Moment
The truth is that CLF isn’t the only stock in the basic materials sector that’s heading up at the moment. In fact, several stocks revolving around materials like iron ore, copper, and more had a great time in the market. The reason for the sector-wide gains that we’re seeing is a relatively simple one. At the end of the day, it all revolves around Donald Trump’s win in the United States Presidential election.
There’s no doubt that Donald Trump’s campaign was a historic one. With wild statements, and in many cases, even wilder promises, Trump won the hearts of the rural U.S. While his campaign was incredibly volatile, and he made several promises that can’t be kept, there were parts of his campaign that were very realistic. These just so happened to be the parts of the campaign that Trump focused on most.
Throughout the campaign, we saw one promise over and over; a promise that’s beneficial to Cliffs Natural Resources Inc (NYSE:CLF) and others in the basic materials sector. That promise is the promise to bring industry back to the United States. You see, Donald Trump spoke at length about the fact that manufacturing is leaving the United States. He also spoke openly about the incredible resources that are available in United States soil.
At the end of the day, plans to bring back manufacturing would help U.S basic materials companies in a big way. After all, manufacturers need basic materials to manufacture their products. So, demand would climb. On top of that, the comments about the resources in U.S soil would suggest that he will be making conditions better for miners in the United States. Of course, this is great for CLF.
What I’ll Be Watching For Ahead
Moving forward, I think things are looking pretty good for Cliffs Natural Resources Inc (NYSE:CLF). The company is in the right sector, and with Donald Trump transitioning into the White House, it’s definitely the right time. However, there is some uncertainty here. At the end of the day, through Donald Trump’s wild campaign, he has left a trail of questions with regard to what he is actually going to work towards accomplishing. Nonetheless, if he follows through with some of his larger promises, we’ll likely see further gains out of Cliffs Natural Resources and several others in the basic materials sector.
What Do You Think?
Where do you think CLF is headed moving forward? Join the discussion in the comments below!
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