US Steel Shares Sink After Biden Blocks Nippon Steel Deal

17 minutes ago

Shares of U.S. Steel (X) tumbled Friday as President Joe Biden blocked the $14.1 billion sale of the iconic American company to Japan’s Nippon Steel.

The White House announced the decision Friday, with the rejection based on the view that the sale posed a threat to national security.

"As a committee of national security and trade experts across the executive branch determined, this acquisition would place one of America’s largest steel producers under foreign control and create risk for our national security and our critical supply chains," Biden said.

US Steel shares were more than 6% in recent trading. The stock is down 36% over the past year.

Before the formal blocking of the deal, The New York Times reported that a blockage of the deal could hurt U.S. relations with Japan, a close ally and a big investor here.

U.S. regulators failed to agree on whether to allow the Japanese company’s acquisition to go through last month, passing the decision to President Biden.

The Japanese firm had pledged to invest more than $2.7 billion in U.S. Steel facilities, and CEO David Burritt had warned of plant closures and the possibility of moving the American company’s headquarters from Pittsburgh if the government blocked the sale.

The rejection of the deal casts a pall over U.S. Steel’s future. It previously had rejected a takeover offer by Cleveland-Cliffs (CLF), which subsequently bought a Canadian steel firm, Stelco.

–Nisha Gopalan

Vistra Levels to Watch as Utility Powers Higher to Start 2025

1 hr 48 min ago

Shares in electric utility Vistra (VST) are on the rise in premarket trading Friday after surging more than 8% yesterday amid growing optimism about the use of nuclear capacity to serve energy-intensive artificial intelligence (AI) demand.

Vistra was up nearly 2% this morning at $152.20. The stock is off to a roaring start in 2025 after soaring 260% in 2024, making it the second biggest gainer in the S&P 500 last year.

Since setting their record high in late November, Vistra shares had undergone an orderly retracement to the 50-day moving average on lower-than-average trading volume.

On Thursday, the stock closed back above the closely watched indicator, signaling that the longer-term uptrend may be resuming. In addition, the relative strength index (RSI) confirms improving price momentum, flashing its highest reading since early December.

Investors should watch key overhead areas on Vistra's chart around $169 and $190, while also monitoring crucial support levels near $140 and $115.

Read the full technical analysis piece here.

–Timothy Smith

Futures Point to Slightly Higher Open for Major Indexes

2 hr 35 min ago

Futures tied to the Dow Jones Industrial Average were up 0.3%.

S&P 500 futures were also up 0.3%.

Nasdaq 100 futures rose 0.4%.

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