Why AK Steel, Kodiak Sciences, and Sorrento Therapeutics Jumped Today
Major benchmarks ran out of holiday cheer on Monday, as trade concerns contributed to a downbeat mood on Wall Street. Some sluggish economic numbers from the manufacturing sector also weighed on market sentiment, casting doubt on what has generally been a positive outlook on the economy from the most recent slate of earnings releases over the past couple of months. Even with indexes falling, though, some companies had good news that sent their share prices higher. AK Steel (NYSE: AKS), Kodiak Sciences (NASDAQ: KOD), and Sorrento Therapeutics (NASDAQ: SRNE) were among the top performers. Here's why they did so well.
Shares of AK Steel climbed more than 4% after President Trump reinstated tariffs on steel from Argentina and Brazil. The U.S. president said that the move came in response to the two South American countries having seen their currencies fall significantly against the U.S. dollar, giving their agricultural sector an advantage in the global markets compared to U.S.-grown products. The 25% tariff won't necessarily have a big impact on the steel industry, as Brazil and Argentina don't represent a huge portion of imports of the metal. Yet the news was welcome for AK Steel, which can now expect slightly higher prices after having had to deal with rising raw materials costs that have squeezed profits.
Image source: AK Steel.
Source Fool.com
