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U.S. Steel Stock Wavers as Regulators Punt Nippon Deal to Biden
43 minutes ago
Shares of U.S. Steel (X) slipped 1% Tuesday after U.S. regulators failed to agree on whether to allow Japanese firm Nippon Steel’s $14.9 billion purchase of the company to go through, instead passing it on to President Biden to decide.
The President now has 15 days to make the determination. Both he and President-elect Donald Trump have expressed opposition to the merger, arguing that a key American steelmaker should not be owned by a foreign entity.
U.S. Steel responded to the decision by the Committee on Foreign Investment in the United States (CFIUS), saying the deal “enhances U.S. national and economic security through investment in manufacturing and innovation.” It added that the Nippon transaction is “the best way, by far, to ensure that U.S. Steel, including its employees, communities, and customers, will thrive well into the future.”
The Japanese firm has pledged to invest more than $2.7 billion in U.S. Steel facilities, and CEO David Burritt has warned of plant closures and the possibility of moving the company’s headquarters from Pittsburgh, where it’s been since 1901, if the government blocks the sale.
U.S. Steel shares have yo-yoed this year on the back-and-forth news about the Nippon acquisition. They tumbled to their lowest level since September last Friday after warning that falling steel prices and the costs associated with the construction of a new factory in Arkansas will impact current quarter results. The shares have lost more than a third of their value this year.
-Bill McColl
American Airlines Shares Recover from Morning Slump as 'Technical Issue' Disrupts Flights
1 hr 44 min ago
The Federal Aviation Administration (FAA) canceled a brief nationwide ground stop requested by American Airlines (AAL) on Christmas Eve, one of the busiest travel days of the year.
"A technical issue is affecting American flights this morning," American Airlines said, according to reports. "Our teams are working to resolve the issue as quickly as possible, and we apologize to our customers for the inconvenience."
Americans are expected to travel in large numbers this holiday season. The American Automobile Association (AAA) earlier this month estimated that more than 119 million people will travel at least 50 miles from home between Dec. 1 and New Year's Day, topping a record set in 2019. More than 7.8 million of those were expected to fly, AAA said.
American shares were down about 1% half an hour before markets opened, after recovering from a sharp 4% drop earlier Tuesday morning.
-Aaron Rennie
Stock Futures Steady Ahead of Holiday-Shortened Session
2 hr 24 min ago
Futures contracts connected to the Dow Jones Industrial Average were down less than 0.1% in early trading on Tuesday.
S&P 500 futures were up 0.1%.
Nasdaq 100 futures advanced 0.2%.
Article Sources Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.
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U.S. Steel. "U. S. Steel Statement on CFIUS Referring Decision on Pending Transaction with Nippon Steel to The President."
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Federal Aviation Administration. "Air Traffic Control System Command Center."
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The Wall Street Journal. "American Airlines Says Technical Issue Affecting Flights."
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CNN. "American Airlines grounds all flights in the United States after a 'technical issue'."
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AAA. "Record Number of Holiday Travelers Expected to Close Out 2024."
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