President Biden noted national security risks associated with the deal
President Joe Biden blocked Japan-based Nippon Steel's $14.9 billion buyout of United States Steel Corp (NYSE:X). Biden highlighted national supply chains risks associated with placing one of the country's biggest steel producers under foreign control. At last glance, X is down 7.9% at $30.01.
The shares are on track for their third loss in the last four sessions, extending their 34.5% year-over-year deficit after running into overhead pressure at the 20-day moving average. While a familiar floor at $30 is offering support, the equity is not too far off from its lowest level since September.
Short sellers are in control, despite short interest falling 2.7% in the most recent reporting period. The 17.58 million shares sold short make up 7.9% of the stock's available float. It would take shorts nearly four days to cover these bearish bets, at X's average pace of trading.
Drilling down to today's options activity, 23,000 calls and 26,000 puts have crossed the tape so far, which is triple the intraday average volume. The most active contract is the January 30 put.