Glencore, Rio Tinto shares fall on earnings
Glencore and Rio Tinto’s shares weigh on basic resources. Glencore reported weak earnings due to weaker commodity prices and cut its payout to investors. Rio Tinto reported a drop in annual profit.
(AI Video Summary)
Glencore reports lower earnings
Glencore, a major mining company, is not doing well lately and this is affecting the whole mining sector. They have reported lower earnings and are paying less money to their investors. In the past two years, their earnings were $17.1 billion, which is a lot less than the $34 billion they made the year before. This drop in earnings has had a big effect on their stock price, which has decreased by over 3% on a daily basis. What's interesting is that the stock price is getting close to an important support line called the "3-6-3, 3-6-4 line." If the stock price goes below this line, it would be the lowest it has been since December 2021. The chart also shows that the stock price has been going down in a consistent pattern, which suggests that it might continue to fall.
Rio Tinto also reports lower earnings
Another mining company to keep an eye on is Rio Tinto. Their stock price has also gone down, but not as much as Glencore. They reported earnings of $11.8 billion for 2023, which is less than the $13.4 billion they made the previous year. However, they mentioned that the pressures of inflation are starting to go away and they paid a dividend to their investors that was higher than expected. This might explain why their stock price hasn't been affected as much as Glencore's.
To summarise, Glencore and Rio Tinto are two mining companies that are going through a rough patch. Glencore's earnings have dropped significantly and their stock price is approaching a critical level. Rio Tinto's earnings have also gone down, but not as much as Glencore's, and they are seeing some positive signs in terms of inflation. Both of these companies are important players in the mining sector, so it's worth keeping an eye on how they perform in the future.
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