Steel, metals, coal stocks up on revised US data
Fri Feb 25, 2005 12:55 PM ET
NEW YORK, Feb 25 (Reuters) - The stocks of U.S. metals, mining, steel and coal companies rose on Friday on news that the U.S. economy had a stronger momentum at the end of 2004 than previously thought.
"This is across the board and in response to the GDP (Gross Domestic Product) revision," said one analyst who declined to be identified.
"It's nickel, steel, coal, even copper, which is ironic because the copper price is down today," he said.
Earlier, the U.S. Commerce Department said GDP, the gauge of total goods and services production, grew at a revised 3.8 percent annual rate in the final three months of last year instead of 3.1 percent reported a month ago.
That was slightly stronger than the 3.7 percent rate that Wall Street economists had forecast and only a small decline from the third quarter's 4 percent pace.
The biggest gainer was Allegheny Technologies (ATI.N: Quote, Profile, Research) , which makes stainless steel, specialty metals and alloys. Its stock was up 11.75 percent at $26.05 early Friday afternoon on the New York Stock Exchange.
Copper miner Phelps Dodge Corp. (PD.N: Quote, Profile, Research) saw its stock price surge 5.62 percent to $106.01, despite telling analysts on Thursday that first-quarter costs would be higher as a result of heavy rains at two mines in Arizona. However, it said production had so far not been affected.
Steel companies were ahead, with U.S. Steel Corp. (X.N: Quote, Profile, Research) up 4.62 percent at $62.47, Nucor (NUE.N: Quote, Profile, Research) up 2.79 percent at $63.39 and AK Steel (AKS.N: Quote, Profile, Research) higher 2.74 percent at $17.98. Steel Dynamics (STLD.O: Quote, Profile, Research) rose 5 percent to $45.99 on Nasdaq.
Shares of Alcoa (AA.N: Quote, Profile, Research) , the world's biggest aluminum producer, were selling on the NYSE for $31.87, a jump of 1.3 percent.
In the coal sector, Consol Energy (CNX.N: Quote, Profile, Research) rose 2.45 percent to $46, while Peabody Energy (BTU.N: Quote, Profile, Research) was up 3.24 percent at $99.10. Massey Energy (MEE.N: Quote, Profile, Research) was ahead 2.74 percent at $44.70 and Arch Coal (ACI.N: Quote, Profile, Research) rose 1.73 percent to $45.30.
© Reuters 2005. All Rights Reserved.