Materials Stocks Posting Early Gains (CLF, X, AA)

The materials sector is performing well this morning and select names are posting solid gains. Cliffs Natural Resources CLF, which produces iron ore and metallurgical coal, is higher by $1.80, or 3.00%, to $61.83. U.S. Steel X is higher by 52 cents, or 1.075, to $48.97. Alcoa AA is higher by 10 cents, or 0.86%, to $11.69. These names are very volatile and are closely linked to the global growth trade. When investors feel comfortable with the global macroeconomic outlook, materials names will outperform. Also, they are viewed by many traders as a leading indicator of where the market is heading. Therefore, the fact that materials are up and leading the market this morning may indicate that the market will move higher in the short run.