Cleveland-Cliffs Guidance Disappoints After In-Line Q2

Cleveland-Cliffs reported second-quarter earnings that met Wall Street estimates. The company's third-quarter guidance fell short of expectations. The steelmaker's outlook for the current quarter pointed to weaker demand and lower prices, traders said. The stock fell in extended trading.

Steel prices have softened in recent weeks. Hot-rolled coil futures slid to their lowest level in three months. The guidance miss reflected that trend. Cliffs, which supplies steel to the automotive and construction sectors, faces pressure from a slowdown in those industries. The company's CLF stock page shows no Alpha Score, reflecting the stock's recent volatility.

Management said higher raw material costs and tepid demand from the auto sector were the reasons for the cautious outlook. The company has been cutting costs. The steel market's near-term path remains uncertain. The next major catalyst for Cliffs is the Q3 report, scheduled for October.