US Steel Jumps Almost 40%

Indexes edge higher ahead of report on retail sales
By Newser Editors and Wire Services
Posted Aug 14, 2023 3:41 PM CDT
US Steel Jumps 38.9% After Buyout Offer Rejected
A water tower at United States Steel Corp.'s Edgar Thomson Plant in Braddock, Pennsylvania.   (AP Photo/Gene J. Puskar, File)

Stock indexes ticked higher on Wall Street ahead of a week of reports showing how strong US shoppers remain, amid hopes their spending can keep the economy out of a recession. The S&P 500 added 25.67, or 0.6%, to 4,489.72, though slightly more stocks fell than rose within the index. The Dow Jones Industrial Average edged up by 26.23 points, or 0.1%, to 35,307.63 in a quiet day of trading. The Nasdaq composite gained 143.48, or 1.1%, to 13,788.33. Stocks have been lackluster in August following a gangbusters first seven months of the year. Critics have been saying a pullback was due, arguing Wall Street too quickly and forcefully latched onto the belief that inflation would continue to cool and the economy would avoid a recession.

US Steel jumped to one of the market's bigger gains, up 38.9%. It said over the weekend that it rejected a buyout offer from Cleveland-Cliffs and that it's heard multiple offers. Cleveland-Cliffs rose 8.8% after it said it offered more than $7 billion in cash and stock for the steelmaker and that it's ready to move on the offer immediately, the AP reports. On the losing end of Wall Street was Nikola, which sank 6.7%. The zero-emission truck company recalled more than 200 of its electric vehicles after an investigation indicated a problem with a component in the battery pack could be the cause of a prior fire. It earlier suggested foul play could be at play in the truck fire at its headquarters.

On Tuesday, the US government will give the latest monthly update on sales at retailers across the country. Economists say it's one of the week's most important reports, and they expect it to show growth accelerated to 0.4% in July from 0.2% in June. The week's other big economic highlight will be Wednesday's release of the minutes from the Federal Reserve's last meeting. Several big retailers are also on the schedule this week to show how much profit they made from April through June. Home Depot, Target, TJX, and Walmart will all be reporting this week, as earnings reporting season for the spring hits its tail end.

(More stock market stories.)

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