Warnings on Cleveland-Cliffs, Chevron, and Wendy's

The stock market’s V-shaped recovery since “Liberation Day” lifted speculative sectors. Investors should exercise caution with the mining sector.Cleveland-Cliffs (CLF) said on May 2 that it would idle its Conshohocken, Riverdale, and Steelton steel mills indefinitely. Starting this summer, the idling will affect around 950 workers.CLF stock will face ongoing selling pressure. The firm had aspirations of buying U.S. Steel (X). Last November 2024, the firm completed its acquisition of Stelco. It paid CAD 60 a share and 0.454 shares of Cliffs common stock.Chevron (CVX) shares are near a 52-week low. The firm reported $47.61 billion in revenue (-2.3% Y/Y). The dividend of $1.71 yields 4.77% for shareholders. The firm bought back significant amounts of shares through the $2.2 billion purchase of Hess stock.CVX stock is attractive, thanks to the company’s strong management team. The stock will recover once oil prices bounce back.Wendy’s (WEN) risks falling below its 52-week low. The firm cut its dividend by 44% to $0.14. This is still a 4.5% forward yield. Investors may also consider McDonald’s (MCD) and Chipotle (CMG), whose brand power drives customer traffic. Starbucks (SBUX), DoorDash (DASH), and Yum Brands (YUM) are also well-run restaurant service firms to consider holding.