Materials Stocks On Fire (CLF, FCX, AA, X)

Materials stocks are surging today as traders place their bets that the global economic recovery will continue after stronger-than-expected manufacturing reports out of China and the U.S. Materials are closely tied to economic growth and are highly cyclical. If growth is strong such names will outperform; conversely, if the economy enters into recession these stocks get hammered. Here are how some key names are faring today: Cliffs Natural Resources CLF is up $3.60, or 6.36%, to $60.17. Freeport-McMoRan Copper & Gold FCX is surging $3.16, or 4.42%, to $74.70. Alcoa AA is up 39 cents, or 3.45%, to $11.56. U.S. Steel X is up $2.37, or 5.35%, to $46.70. As materials go so goes the economy, and stock market for that matter. Materials are often good leading indicators and are thus signaling that the market correction may be over for now while global growth continues for the remainder of 2010.