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Cleveland-Cliffs Faces Economic Storm: What’s Next?

Bryce TuoheyAvatar
Written by Bryce Tuohey Reviewed by Matt Monaco Fact-checked by Bryce Tuohey
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Cleveland-Cliffs Inc.’s stock is in decline following reports of supply chain disruptions and reduced steel demand impacting its financial outlook. On Friday, Cleveland-Cliffs Inc.’s stocks have been trading down by -8.36 percent.

Trade Wars and Tariffs: A Steel Sector Dilemma

  • Escalating global trade conflicts due to tariffs have sparked concern for the steel and aluminum sectors. Cleveland-Cliffs (CLF) along with other industry players could be affected.

Candlestick Chart

Live Update At 17:02:47 EST: On Friday, March 28, 2025 Cleveland-Cliffs Inc. stock [NYSE: CLF] is trending down by -8.36%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

  • Hyundai’s new steel mill in Louisiana might shake up the market and pose competition to Cleveland-Cliffs, particularly if U.S. auto manufacturing increases or reshoring gains momentum.

  • Faced with weak automotive demand, Cleveland-Cliffs plans temporary shutdowns at its Michigan plant. Around 600 employees will receive layoff notices – a stark reflection of an unsettled industry landscape.

A Quick Look at Cleveland-Cliffs’ Earnings and Ratios

Cleveland-Cliffs Inc., a hub is bustling with activity as the financial market tries to decipher its recent earnings report. As the dust settles, some key insights emerge: The company reported a revenue of about $19.2 billion. However, the profit margin has gone negative, as reflected in a -3.69% profit margin continuation, creating waves of uncertainty. Debt is also significant. The total debt-to-equity ratio stands at 1.06 and might be a sign of leveraged risks amidst this volatility. The company’s enterprise value is around $11.62 billion and with a price-to-sales ratio of 0.24, CLF’s valuation measures raise eyebrows. This analysis signals to traders the importance of adopting a measured approach in such volatile markets. As millionaire penny stock trader and teacher Tim Sykes, says, “Small gains add up over time; focus on building wealth gradually, not chasing jackpots.” Though their gross margin hits 100%, insulation against fluctuating market winds seems challenging.

More Breaking News

Substantial cash flow changes paint a complicated picture. The cash flow from continuing financial activities seemed to surge, reaching a puzzling $3.22 billion, a move influenced by strategic adjustments. Yet, operating cash flow saw a loss, suggesting pressures in basic operational paradigms. This complex weave of profits, debts, and assets presents a cautionary note, urging market players to tread carefully.

Impact of Recent News on Stock Movements

The constant ebb and flow in Cleveland-Cliffs’ stock price is swayed by an array of factors highlighted in recent articles. For instance, the proposed tariffs from President Trump have ignited fear among investors, questioning the ripple effect on steel and aluminum industries. An evolving scenario like this doesn’t paint a stable picture for stocks like CLF, which are already being priced at the brink. There exists a clear digression on what the tariffs might mean for domestic production and import reliance, thus shaking the confidence somewhat.

However, Hyundai’s steel mill venture signals a potential game-changer. The concern over its impact on Cleveland-Cliffs hinges on auto production and cost structures. A surge in local car manufacturing may influence the demand for CLF’s auto supply steel sheets. Nevertheless, it’s vital to wonder if auto makers will weigh benefits of dealing with a regional supplier against Cleveland-Cliffs. The competitive dynamics are shifting, and so could CLF’s market positioning.

Lastly, slowing automotive demand has prompted Cleveland-Cliffs to pause some operations in Michigan, issuing layoffs. Stockholders who follow automotive cycles closely will find parallels between demand dip and fluctuating stock evaluations. As auto giants pause production, raw steel demand could dive, affecting CLF stock support lines.

Looking Ahead: Weathering the Economic Storm

The road ahead remains a rollercoaster, filled with twists and surprises for Cleveland-Cliffs. It’s a time where every decision, whether it’s about infrastructure investments or strategizing around tariffs, signifies leaps between defining moments. The impact of these news angles in combination with market trends truly sets the scene for the upcoming chapter.

As millionaire penny stock trader and teacher Tim Sykes, says, “Embrace the journey, the ups and downs; each mistake is a lesson to improve your strategy.” This mindset is particularly crucial in times of multilayer financial ambiguity, where understanding granular details becomes paramount. Traders and stakeholders must be diligent in observing company communications, legislative directives, and international trade maneuvers. Every piece of new information feeds into the larger narrative that ultimately defines Cleveland-Cliff’s legacy in both local and global markets. As always, the message is clear: stay informed, stay agile.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

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Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”