Cleveland Cliffs Inc (CLF)

[Saving Grace]

Why CLF Cliffs Natural Resources will continue to jump.

Monday began the new week on a downward note for the stock market, as investors reacted negatively to oil prices falling back below the $50-per-barrel level, while others worried about the consumer and healthcare sectors. Even with some prominent companies reporting solid quarterly results, many market participants are nervous about whether the new earnings season will bring more positive or negative surprises. Yet even though major market benchmarks finished with declines of around a quarter-percent, many stocks managed to post decent gains.

Cliffs climbs upward on hopes for a steel recovery

Cliffs Natural Resources gained 6% after an article in Barron's pointed to a potential recovery in steel stocks. As a producer of iron ore, which is an important material in steel production, Cliffs Natural is directly exposed to the health of the steel industry. Over the weekend, Barron's suggested that a recovery in steel could send shares of U.S. Steel upward by as much as 50% in a single year. That helped stoke interest not just in the steel company but also in Cliffs and other producers of the raw materials needed for steel. Investors have tried to call bottoms for the steel sector before with limited success, but some still believe that Cliffs has so much upside potential that it's worth the downside risk.

Read more: http://www.fool.com/investing/2016/10/17/why-quality-systems-cliffs-natural-resources-and-s.aspx#ixzz4NRWcCYg4