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Why are the steel and aluminum prices up? GM has been buying from domestic suppliers before now.
 

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Discussion Starter #5
Why are the steel and aluminum prices up? GM has been buying from domestic suppliers before now.
It's in the article.

Even before the tariffs took effect, prices of the metals were rising, in part because metals-using businesses went on a buying-spree before the tariffs applied.
 

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I am buying more. I love it when things go "on sale". GM pays a nice dividend and I don't think they are going bankwupt anytime soon :).......
 

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I am buying more. I love it when things go "on sale". GM pays a nice dividend and I don't think they are going bankwupt anytime soon :).......
GM cut its full-year profit guidance to about $6 per share in 2018, down from its earlier forecast of $6.30 to $6.60 a share......

......GM earned $1.81 per share, after adjustments, beating analyst expectations that the company would earn $1.78 per share.
The sky is falling. All we need now is Mary with a cardboard sign written in magic marker, looking drunk and disheveled.
 

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Why are the steel and aluminum prices up? GM has been buying from domestic suppliers before now.
Tariffs...
When you artificially increase the price of imported materials, demand for domestic materials goes up. Supply and Demand dictates that the price of domestic materials will now rise. In many cases, domestic material prices have actually risen more than the 25% tariff has caused imported materials to rise.
 

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Dividends are up but stock price is down = buying opportunity. Of course the stock market is discounting because of the tough times ahead as people get laid off because of tariffs but the latest is Trump trying to get rid of all tariffs but countries will still protect strategic industries which the WTO says is legal. When everything is up in the air is when buying opportunities appear. I don't do transportation stocks but there will likely be more lows before we see sustained highs. It's always been an up and down market like it's on an elastic band.
 

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I see GM is now looking at raising prices to the consumer to help make up for the increased steel and aluminum prices.
 

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Discussion Starter #12
Tariffs...
When you artificially increase the price of imported materials, demand for domestic materials goes up. Supply and Demand dictates that the price of domestic materials will now rise. In many cases, domestic material prices have actually risen more than the 25% tariff has caused imported materials to rise.
The commodities market is what sets prices. The tariffs may never have any serious effect other than to scare the market. See today's EU tariff news. Things are changing, because someone has the 'nads to make changes. Word is the German automakers laid down the law to the EU boss.

I see GM is now looking at raising prices to the consumer to help make up for the increased steel and aluminum prices.
Meanwhile it looks like Mary is going to get her wished for (lobbied for) removal of the CARB EPA waiver. She needs to learn how to show appreciation. So far it looks like that's not in her bag of executive skills. Color me disappointed.
 

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The commodities market is what sets prices. The tariffs may never have any serious effect other than to scare the market. See today's EU tariff news. Things are changing, because someone has the 'nads to make changes. Word is the German automakers laid down the law to the EU boss.
The commodities market is driven by supply and demand, so yes, the tariffs will have a serious effect. As and engineer who works daily with steel and aluminum parts, I can tell you that it already has.
 

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Discussion Starter #14
The commodities market is driven by supply and demand, so yes, the tariffs will have a serious effect. As and engineer who works daily with steel and aluminum parts, I can tell you that it already has.
The commodities market is driven by fear just as much as supply/demand. No one knows what the real impact of the tariff game will be when all is told. They bought it up ahead of time out of fear. Again from the article:

Even before the tariffs took effect, prices of the metals were rising, in part because metals-using businesses went on a buying-spree before the tariffs applied.
Commodities trading is a game of speculation. Speculation is done knowing few facts. The future is never clear.

The EU boss was here yesterday and major progress was made. Canada and Mexico are on his heels, IIRC at least one of them coming today.

China is going to be the real problem.
 

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tariff game
trump imposes a tariff on soya beans against china
price drops on soya beans in US because of lack of demand
Argintina starts supplying china with their soya beans
Argintina starts buying US soya beans because they are now so cheap
 

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tariff game
trump imposes a tariff on soya beans against china
price drops on soya beans in US because of lack of demand
Argintina starts supplying china with their soya beans
Argintina starts buying US soya beans because they are now so cheap
you've got things a bit backwards. China impossed the tariff on imported soybeans from the US, as a retaliation for all the import tariffs trump has imposed on Chinese products.

Why would Argentina start buying US soybeans? It's not like they would turn a profit buying them, then turning around and selling them to China. I think China would be wise of that, and they would still be covered under the tariff anyway.
 

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Discussion Starter #20
Down another ~1% and I don't think they've had the earnings call yet.
At the end of the day down 2.39%. I didn't check on the earnings call but I'm sure I'll be hearing about it on the business channel this morning.

Meanwhile the U.S. Q2 GDP numbers are in - up 4.1%. Outstanding!

Looking for another buying opportunity? Facebook. Down from $217 to $175.
 
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