KeyBanc Bullish On Steel Stocks

AK Steel Holding Corporation AKS shares are trading higher by $0.14 (4.6 percent) at $4.24 in Monday's session. Investors took note of a KeyBanc upgrade from Underweight to Sector Weight.

The firm is attempting to pick a bottom in the issue as it fell from its July 27 high ($7.09) to a low of $3.87 last Tuesday. That low is flanked by five other lows in the $4 area, making it a candidate for technical rebound at the least.

The rating change instigated a higher open and the issue continued in that direction until it found resistance a dime under its September 9 high ($4.49), reaching $4.39. At this time, it has retreated and is resting just off the low for the session of $4.23.

KeyBanc's upgrade of United States Steel Corporation X to Sector Weight has the issue trading higher by $0.76 at $16.67, but well off its high for the day of $17.23.

Olympic Steel, Inc. ZEUS is staging the biggest rally of the three off its upgrade. The lightly-traded issue jumped from its Friday close of $18.49 to $19.86 before falling back to the $19.50 area.

Perhaps the firm is anticipating a robust turnaround in the U.S. economy that will result in an increase in construction spending of which steel is a major component.