2 Mining Stocks Gapping Higher After Earnings

Stronger commodities prices helped FCX score a profit beat

Jan 25, 2018 at 10:12 AM
facebook X logo linkedin

The latest round of corporate earnings reports has sparked a risk-on session on Wall Street, with the major market indexes carving out new record highs. Among specific names rising on positive earnings reactions are mining stocks Cleveland-Cliffs Inc (NYSE:CLF) and Freeport-McMoRan Inc (NYSE:FCX). Here's a closer look at how shares of CLF and FCX are trading today.

Cleveland-Cliffs Stock Rallies Past Key Resistance After Earnings

Cleveland-Cliffs reported fourth-quarter earnings of $1.05 per share -- blowing past the consensus estimate for a per-share profit of $0.20. CLF also said it would accelerate its plan to close its Australian mining operations.

As a result, CLF stock is up 8.7% to trade at $9.08, breaking free of a key technical level. In fact, several rally attempts made by the shares over the past 12 months have been quickly contained in the $8.80-$8.90 region, which served as a floor last January. Most recently, the equity has been surging off its early December lows just below $6, up more than 52%.

Part of this upside was likely driven by short sellers, too. Short interest dropped 26% in the most recent reporting period to 38.03 million shares. This still accounts for 16.4% of Cleveland-Cliffs stock's available float, or 4.1 times the average daily pace of trading.

Bearish Freeport-McMoRan Options Prices Cheap Amid Surge

Freeport-McMoRan cited stronger commodity prices and increasing productivity for its fourth-quarter adjusted profit beat of $0.51. The company also waxed optimistic on talks with the Indonesian government over the Grasberg mining pit.

At last check, FCX stock was trading 1% lower at $19.40, but managed to hit a two-year high of $20.25 out of the gate. This is just more of the same for the shares, which have shot up 50% since taking a sharp bounce off their 200-day moving average in mid-November.

This impressive price action has put options prices imploding, relative to their call counterparts. FCX's 30-day implied volatility skew of negative 5.9% ranks below 99% of all comparable readings taken in the past year.


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI