U.S. Steel -3.3% after Morgan Stanley downgrade

• U.S. Steel (X -3.3%) is downgraded to Equal Weight from Overweight with a $19 price target, cut from $30, at Morgan Stanley, citing the company's weaker than expected Q3 results and believing the risk/reward on the stock has become more skewed to the downside.
• Analyst Evan Kurtz says he has changed his positive base case to a bear case skew, and despite the firm's that U.S. steel prices will begin to recover in Q1 2016 and average $510/ton for the year, his new 2016 EBITDA estimate of $410M falls below consensus of $737M.
• Kurtz thinks Steel Dynamics (STLD -3.1%) is a better stock to own now, since “as a low-cost scrap based steel producer, STLD has been less affected by the recent scrap driven price declines."