Tariffs

[HawgWild]

The steel & aluminum industries seem to like this tariff talk. The Market overall, not so much. NUE is pulling back from a 2.5% bounce. I would have thought it would have done more. Still have trading time left.

[Boardon Hamsay]

In my mind, tariffs alone don't make a bounce in the steels sustainable as I think a lot of the tariff potential was already priced in. Infrastructure or some other catalyst is really needed to get the steels going. Otherwise, I think potential trade war concerns as the byproduct of the tariffs will more broadly prevail. NUE in particular will hit resistance a little quicker due to repeatedly dialing down guidance of the last couple quarters. With an infrastructure deal, NUE could run to a $90ish price target. Without it, I see it being capped to the mid $70 neighborhood. Just my take though.

[Porkys Revenge]

Commodities have tanked. Soybeans hit a 9-year low yesterday. Not looking good.

[HawgWild]

If this "trade war" with China was truly a tit for tat we would win. We export $167 billion to China and import $463 billion. However, China may simply choose to shop elsewhere: buy soybeans from Brazil, oil from Iran and airplanes from France.

Many American companies have expanded into China: KFC, McDonalds, NIKE, GM, Ford, Starbucks, Coach, Wynn Resorts, etc. The Chinese may have some type of "patriotic" revolt and reject these American products.

[99toLife]

If this "trade war" with China was truly a tit for tat we would win. We export $167 billion to China and import $463 billion. However, China may simply choose to shop elsewhere: buy soybeans from Brazil, oil from Iran and airplanes from France.

Many American companies have expanded into China: KFC, McDonalds, NIKE, GM, Ford, Starbucks, Coach, Wynn Resorts, etc. The Chinese may have some type of "patriotic" revolt and reject these American products.

add Wal-Mart

[HawgWild]

NUE drops 4+% today. Tell me again how this tariff on steel is good for American steel manufacturing companies.

TIA

[Dumb ole famrboy]

If this "trade war" with China was truly a tit for tat we would win. We export $167 billion to China and import $463 billion. However, China may simply choose to shop elsewhere: buy soybeans from Brazil, oil from Iran and airplanes from France.

Many American companies have expanded into China: KFC, McDonalds, NIKE, GM, Ford, Starbucks, Coach, Wynn Resorts, etc. The Chinese may have some type of "patriotic" revolt and reject these American products.

Agricultural capacity World Wide is basically static and at 100%. If a region moves to supply the world market with more of a specific crop, such as soybeans, they have to divert the capacity from other crops they are currently producing for the market.

[HotlantaHog]

A trade war isn't good for anyone, and agriculture is particularly a big loser.

If it is a negotiating ploy that results in a great deal, that would be great. So far, it hasn't and the uncertainty has unsettled the markets and businesses.

[BENTON PIGGEE]

Tariffs overall will shrink the GDP. I don't know if the current ones/threats of future ones are worth the risk of recession. I'm not even sure they are even that advantageous politically.

[HawgWild]

NUE at 52 week low. Tariffs ain't helping.

[HawgWild]

So now we place tariffs on every country? On FBN today:

"Europe treats us worse than China," Trump said. "Europe is — you know, look, I come from Europe. We come — you come from Europe, okay, you're of the European nations. European nations were set up in order to take advantage of the United States."

He attacked the trade policies of both China and the European Union, but he also sounded off on Vietnam, which he described as "almost the single worst abuser of everybody." He indicated he's considering levying tariffs on Vietnamese goods.

[HotlantaHog]

NUE at 52 week low. Tariffs ain't helping.

Interesting, Nucor is a great company, has been very well run over the years.

[Boardon Hamsay]

Interesting, Nucor is a great company, has been very well run over the years.

The issue with NUE is the lack of a catalyst to move the stock higher.  It's got a decent yield but all the upside was priced into the stock back in late 2017. Need an infrastructure deal to really get NUE's multiple expanding. Otherwise, it'll hang out around 7-8 times earnings for the foreseeable future.

[HawgWild]

Silly me, I bought NUE back in 2008 thinking that infrastructure deal was right around the corner.