Have Steel Stocks Bottomed? (NUE, STLD, AKS, X)

First came Nucor NUE. Then came Steel Dynamics STLD. Then came AKS Steel AKS. One by one, these U.S. steelmakers lowered their guidance for the third quarter. Nucor cited weak demand in the construction sector, Steel Dynamics said results would be hurt by reduced margins and lower sales prices, AK Steel cited higher iron ore costs that would crimp its earnings. The steel industry has had a sluggish recovery due to the fact its biggest customer is the non-residential construction sector, which has yet to rebound. However, after trading lower much of this week, all three names are higher today, suggesting that a near-term bottom may be in place as the negative news has been discounted. Nucor is up 0.10%, Steel Dynamics is higher by 1.22%, and AK Steel is up 1.02%. U.S. Steel X, which did not give a third-quarter earnings warning, is higher by 1.59%.