U.S. Steel Sinks After Doubling Down on Spending Amid Cash Burn

A worker removes slag, a stony waste substance created from the smelting process, from molten metal in a ladle at a facility in Salem, Ohio.Photographer: Ty Wright/Bloomberg
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U.S. Steel Corp. tried to paint a rosy picture, but investors just didn’t buy it.

Shares of the Pittsburgh-based steelmaker headed for its deepest slump in almost four months --the worst performer on the S&P index of 13 producers of the metal -- even after reportingBloomberg Terminal second-quarter results that topped estimates. Concerns are mounting that the company’s $1.6 billion investment strategy will hurt its finances at a time when its cash level is already at the lowest in almost six years.