Why Cleveland-Cliffs (CLF) Led the Monday Upsurge?

We recently published a list of 10 Firms Dominate Monday Upsurge. In this article, we are going to take a look at where Cleveland-Cliffs Inc. (NYSE:CLF) stands against other firms that dominated Monday upsurge.

Ten companies—predominantly in the healthcare sector—kicked off Monday’s trading with notable gains amid a series of business updates, earnings, and acquisition deals that have fueled investor confidence.

Their gains outperformed mixed trading on Wall Street, with the Dow Jones and S&P’s main index the only gainers, up 0.86 percent and 0.16 percent, respectively. Meanwhile, the Nasdaq Composite dropped by 0.38 percent.

In this article, we will take a look at what buoyed the companies’ share prices.

To come up with Monday’s top gainers, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

A welder in a hardhat soldering steel plates to a blueprint plan.

Cleveland-Cliffs Inc. (NYSE:CLF)

Shares of an American steel manufacturer Cleveland-Cliffs Inc. (NYSE:CLF) kicked off the trading week on a positive note, rallying by 5.96 percent to close at $10.49 apiece with investor sentiment buoyed by reports that it was looking to acquire United States Steel Corp. (X).

According to news, Cleveland-Cliffs (NYSE:CLF) is currently in talks with Nucor Corp. (NUE) to jointly acquire US Steel (X) at over $30 per share. It would then sell US Steel’s Big River Steel subsidiary to Nucor.

The proposed acquisition came after President Joe Biden blocked a deal for Japan-based Nippon Steel to acquire US Steel for $14 billion.

According to Biden, steel producers, and the American steelworkers “are the backbone of our nation.”

“A strong domestically owned and operated steel industry represents an essential national security priority and is critical for resilient supply chains. … Without domestic steel production and domestic steelworkers, our nation is less strong and less secure,” he noted.

Overall, CLF ranks 10th on our list of firms that dominate Monday upsurge. While we acknowledge the potential of CLF, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CLF but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.