Materials Shares Weaker as Fears of a Slowing Economy Emerge — Materials Roundup
Shares of companies in the materials sector fell as higher interest rates, worries about AI spending and surging oil prices dampen the outlook for manufacturing.
Freeport-McMoRan’s 2Q earnings outpaced expectations, as it received a boost from favorable pricing. The copper mining heavyweight reports adjusted earnings of 74 cents a share, up from 54 cents a year ago and above Wall Street’s expectations. Revenue fell 7% to $7.03 billion from a year earlier, but still beat the analyst consensus, according to FactSet. Copper sales totaled 710 million pounds, bolstering financials and coming in above Freeport’s April guidance. The average realized copper price increased to $6.17 a pound, up from $4.54 a year ago. Sales of gold totaled 123,000 ounces, down from 522,000 a year ago. However, Freeport also benefited from a 37% increase in the average realized price of gold per ounce.
Oil surge plus rate pressure is a double hit. AI spending is the new distraction while real industry softens. Materials lag tells the real story.