The success of steel stocks and the exchange traded funds (ETFs) that track them have hit a bump in the road due to low steel prices, high inventory and high imports. Steel giant Nucor (NUE) said it expects fourth quarter earnings to be less than strong, reports Christina Wise of Investor’s Business Daily. The stock was at an all-time high last week, and got knocked 7%. Market Vectors Steel Fund ETF (SLX) felt the aftershock as did all of its peers.
SLX didn’t get hit as bad as Nucor, since it is a diversified ETF and Nucor makes up less than 5% of the fund. SLX tracks Amex Steel Index, which is made up of steel production and fabrication as well as extraction and reduction of iron ore.
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