HomeInvesting NewsThis week, Freeport McMoRan is down 15% as copper drops to its...

This week, Freeport McMoRan is down 15% as copper drops to its lowest level since late July

Published on

Freeport McMoRan (NYSE:FCX)

With a loss of 5.4% on Thursday and a weekly loss of 15%, Freeport McMoRan (NYSE:FCX) is among the five worst performers on the S&P 500. Copper prices have fallen once more on concerns that the European energy crisis, the Federal Reserve’s tighter monetary policy, and China’s severe COVID-19 lockdowns will reduce demand for metals and slow global economic growth.

With Comex front-month copper (HG1:COM) closing Thursday -2.9% at $3.4145/lb, the lowest settlement price since July 26, copper has reverted strongly this week after a recent uptick. (SCCO) -3.3%, (TECK) -4.5%, (HBM) -6.4%, (RIO) -3.6%, and (BHP) -3.1% are some other copper producers.

According to a private study, China’s factory activity decreased in August, and about 70 Chinese cities reported reductions in new property prices, the highest number since the pandemic’s beginning. Like Shanghai’s two-month lockdown earlier this year, Chengdu, China’s largest city, will be closed to its 21 million citizens in order to contain a COVID-19 outbreak.

The dollar, which is trading at two-decade highs against other major currencies, is another factor that is putting pressure on copper and other industrial metals. Josh Arnold writes in a negative analysis that was just posted on Seeking Alpha that the inflation trade is dead and that Freeport McMoRan (FCX) shares still have further to fall.

As the day for the announcement of its subsequent earnings draws nears, Freeport-McMoRan will try to project strength. Analysts anticipate Freeport-McMoRan to announce earnings of $0.57 per share in that report. This would represent a decrease of 35.96% over the prior year. The revenue estimate provided by Zacks anticipates net sales of $6.45 billion, an increase of 6.02% from the same period last year.

Freeport mines copper, gold, and molybdenum, but its main focus is on copper since it is so widely used in the economy—in everything from semiconductors to electric vehicles to construction. Alcoa produces aluminum for industrial and construction applications, while Steel Dynamics produces a variety of steel products for a wide range of end customers, from construction to automobiles.

Each mines a resource that is susceptible to economic conditions, so today, investors are starting to worry more about a recession in the coming year. Strong economic statistics today added to the pessimism that was already present last Friday after Jay Powell delivered a speech at the Fed meeting in Jackson Hole that was decidedly hawkish.

Featured Image – Megapixl © Transversospinales 

See Disclaimer Please

Latest News

Recent Surge in Tesla Stock: Exactly What Caused It?

Tesla Stock (NASDAQ:TSLA) As of 11:30 a.m ET on Friday, Tesla stock was up 2.3%...

Here’s Why Carvana Stock Fell Quite So Much as 23.7% This Week

Carvana Stock (NYSE:CVNA) According to data provided by S&P Global Market Intelligence, Carvana stock fell...

Here’s Why Tellurian Stock Is Rising Again Today

Tellurian Stock (NYSEMKT:TELL) Tellurian stock was up 6.5% as of 11:06 p.m. ET today after...

Is It Time to Buy Chewy Stock?

Chewy Stock (NYSE:CHWY) Pet supplies are one of the few consumer goods that do well,...

More like this

2 Casino Stocks You Should Consider

With a recession on the horizon, investors must be more selective than ever. Analysts...

(Exxon Mobil Stock) Exxon Ceo Warns Biden Administration Against Restricting Fuel Exports

Exxon (Exxon Mobil Stock) opposes calls for oil corporations to reduce international exports and...

Apple Stock Loses $120 Billion Because of a Rare Downgrade

Apple stock just took a significant knock after it was once considered to be...

Meta Stock Tops Morningstar List of the Most Undervalued Stocks 

Morningstar compiled a list of the most undervalued stocks among those with a large...

Hd Stock up as Foundation to Contribute Up to $1 Million to Aid Communities Affected by Hurricane Ian

HD stock was trading at $280.23 as of 12:55 PM EDT. The Home Depot Foundation...

Making the Cut: Micron (Micron Stock)

Micron Technology Inc (Micron Stock) latest outlook brings expectations back to normal, although the...