Alcoa Shares Plummet Following Downgrade; J.P. Morgan Favors Copper Over Aluminum.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 08 2026
0mins
Source: Barron's
Price Surge: In 2025, both aluminum and copper prices increased significantly, with copper outperforming aluminum.
Impact on Alcoa: The rise in copper prices poses challenges for Alcoa, the aluminum producer, as it approaches the fourth-quarter earnings season.
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Analyst Views on FCX
Wall Street analysts forecast FCX stock price to rise
15 Analyst Rating
13 Buy
2 Hold
0 Sell
Strong Buy
Current: 54.940
Low
46.00
Averages
58.79
High
70.00
Current: 54.940
Low
46.00
Averages
58.79
High
70.00
About FCX
Freeport-McMoRan Inc. is an international metals company focused on copper. The Company operates geographically diverse assets with significant proven and probable mineral reserves of copper, gold and molybdenum. The Company's segments include the Morenci and Cerro Verde copper mines, the Indonesia operations (including the Grasberg minerals district and PT-FI’s downstream processing facilities), the Rod & Refining operations and Atlantic Copper Smelting & Refining. Its operations include North America, South America and Indonesia. In North America, it manages seven copper operations: Morenci, Bagdad, Safford (including Lone Star), Sierrita and Miami in Arizona, and Chino and Tyrone in New Mexico, and two molybdenum mines: Henderson and Climax in Colorado. It also operates a copper smelter in Miami, Arizona. In South America, it manages two copper operations: Cerro Verde in Peru and El Abra in Chile. In addition to copper, the Grasberg minerals district also produces gold and silver.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Commodity Price Fluctuations: In March, West Texas Intermediate crude futures rose 33% and Brent crude futures increased by 38%, indicating robust demand for energy products, which could drive the performance of related stocks.
- Poor Stock Market Performance: The Nasdaq Composite and S&P 500 indices fell by 3% and 4.3% respectively in March, while the Dow Jones dropped about 5.7%, suggesting weakened investor confidence in stocks, prompting a potential shift towards commodities.
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- Significant Inventory Drop: According to Mysteel Global, refined copper inventories in China fell by 78,700 tons to 486,200 tons in the week ending Monday, marking the largest weekly drop this year, indicating a potential recovery in demand that could further support copper prices.
- Market Reaction: Trump's comments triggered significant volatility in financial markets, with stock and bond markets rallying while crude oil and the dollar fell, a dynamic that may influence investor confidence in copper and related stocks.
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See More
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- Income Disparity Impact: Data shows that the bottom 10% of households face an annual tariff cost of $315, representing 0.8% of their after-tax income, while the top 10% incur $1,325, only 0.3%, illustrating the regressive nature of tariffs that disproportionately affect lower earners.
- Consumption Pattern Differences: The structure of household consumption determines the tariff burden, with families purchasing electronics and automobiles facing higher costs, while those leaning towards services are less impacted, indicating the critical role of consumption types in tariff effects.
- Geographical Factors Influence: The cost of living differences based on geographic location lead to uneven tariff burdens; for instance, a 1% price increase in California has a significantly greater financial impact than in Kansas, emphasizing the importance of location in tariff implications.
See More
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- Gold's Performance: Despite this trend, gold has lost its year-to-date gains, negatively impacting mining stocks.
See More
