Sell in May and Go Away From U.S. Steel Companies

Zacks.com submits: Nucor Corporation (NUE) will release its results for the second quarter of 2011 before the market opens on July 21, 2011. Nucor reported a stupendous increase in profit to $190.8 million or 56 cents per share in the first quarter of 2011, surpassing the Zacks Consensus Estimate by 21 cents and its own guidance range of 30 cents–35 cent.

The Mole submits: U.S. stocks rose for a second day, erasing earlier losses as speculation the Federal Reserve will take steps to spur lending and an increase in building permits sent homebuilders and commodity producers higher and in doing so brushed off a nasty housing starts number and underwhelming numbers from Goldman Sachs (GS).

ByPrice Point:Steel companies continue to operate in challenging environment, since the sector's earnings are highly levered to the economic health of a country and the world at large. Despite of these difficult times, there are some steel companies which managed their businesses exceptionally well in the past couple of years.

By Qineqt:Nucor Corporation (NUE) reported better than expected third quarter earnings as metal margins came out better than what the sell side was expecting. Lower scrap cost was the reason for higher-than-expected margins. However, NUE is expecting Q4'12 earnings to decline sequentially due to high import levels, excess domestic supply, weak economic outlook, and seasonally weak demand in Q4'12.

By Bret Jensen:Given the perilous state of Europe and of the market, sticking with stocks with high dividends, good cash flow and low valuations seems like a prudent course of action. One of the best yielding stocks in the Basic Materials sector that looks good here is Nucor.

ETF Database submits: U.S. equities finished Thursday relatively flat as investors digested mixed earnings reports from a variety of important sector leaders. The Dow finished the day down 0.2% while the Nasdaq and the S&P 500 both rose and ended up 0.2% and 0.1%, respectively. Meanwhile, commodity markets surged thanks to a weaker dollar which fell against a variety of major world currencies. Gold rose by $21/oz. while silver and grains both finished the day higher as well.

Jim Pyke submits:The steel industry has been whipsawed through the past couple of years from the summer of 2008 when prices reached all time highs through the economic downturn which saw drastic price drops and diminished demand, to the last few months which have seen steel prices rise again. While steel prices have not yet returned to all time highs, there have been significant increases. However, whipsawing prices is pretty much typical for steel products.

Dr. Stephen Leeb submits:While lackluster economic data has failed to derail the market’s rally (likely because of an anticipated second round of quantitative easing), earnings season has the ability to do so by offering further insight into the strength of the economy.