dt03mbb
The S&P 500 Materials Index (Sector) posted a minor gain this trading week. +0.13%with the Materials Select Sector SPDR ETF (XLB) down 0.46%. The largest stock index S&P 500 (SP500) was hit by a mega-cap stocks slump amid third-quarter earnings season despite some near-term bullish signs.
Copper prices (HG1:COM) achieved a +2.8% rebound during the week amid signs of recovery in China. In London, three-month copper had its strongest weekly performance in more than a month as China announced positive policy measures, although the rally was partially offset by a stronger dollar and signs of a weak European economy.
Iron ore futures (SCO:COM) also rose +3.9% in the five-day period over reports that the Chinese government may be preparing additional sovereign debt issuance as part of efforts to boost economic growth.
Nickel prices had their biggest weekly fall in a month amid a global surplus, with three-month prices on the London Stock Exchange falling -2.4%.
Meanwhile, gold (XAUUSD:CUR) made some gains and is nearing its biggest monthly rise since March 2023. Precious metal prices have been boosted by safe-haven capital inflows amid the conflict. between Israel and Hamas.
Take a look at this week’s top gains among basic materials stocks ($2 billion+ market cap):
Sigma Lithium (SGML) +14.91%; Last week, the lithium company expanded its senior leadership team with new appointments and prepared the third shipment of 20,000 tons of Triple Zero Green Lithium at the port of Vitoria, Brazil.
FMC (FMC) +13.42%; Shares stabilized after falling following lower third-quarter guidance and plans to restructure operations in Brazil and the company’s overall cost structure.
Cleveland-Cliffs (CLF) +11.08%; The steelmaker posted better-than-expected third-quarter profits with record steel shipments to the automotive industry.
OK OK) +8.88%; Third-quarter net earnings fell but were still above analyst estimates, and the company announced plans to pay out ~$4 billion to shareholders through dividends and share buybacks.
Eldorado Gold (EGO) +6.94%; Third-quarter results easily beat analyst estimates, helped by higher gold sales and higher gold prices.
Here are the biggest losers among basic materials stocks:
Avantor (AVTR) -12.43%; Shares fell during the week the company released its third-quarter earnings.
I was (OLN) -7.43%; Shares fell in part after JP Morgan lowered its price estimate for titanium dioxide.
Teck Resources (TECK) -7.38%; The materials producer continued to slide after its third-quarter results and withdrawing a permit application to expand its copper mine in Chile.
Posco Holdings (PKX) -7.12%; Posco reported downbeat third-quarter results citing lower steel demand, lower product prices and lower shipments.
Sibanye Stillwater (SBSW) -5.50%; Shares fell after Sibanye said its ongoing restructuring efforts could affect more than 4,000 employees and contractors.
Other ETF materials to consider: iShares Global Timber & Forestry ETF (WOOD), SPDR Materials Select Sector ETF, Vanguard Materials ETF (VAW), iShares Global Materials ETF (MXI), SPDR S&P Metals and Mining ETF (XME), VanEck Vectors Gold Miners ETF (GDX), iShares MSCI Global Gold Miners ETF (RING), Global X Copper Miners ETF (COPX).
Read more in Sigma Lithium, Golden Gold, Olin and Teck Resources:
Sigma Lithium: the beloved green energy
Eldorado Gold: the action is attractive
Olin is probably a value trap
The Teck resources saga continues: figuring out the company’s next step
