Basic Materials Stocks, Including Parker-Hannifin, Making Big Moves on October 9, 2012

This morning's trading has marked a bad day for the market so far. The Nasdaq is down 1.7%; the S&P 500 has decreased 0.8%; and the Dow has declined 0.7%. The basic materials sector is the category of stocks that accounts for companies involved with the discovery, development and processing of raw materials. This sector includes the mining and refining of metals, chemical producers and forestry products. The basic materials sector is sensitive to changes in the business cycle. Because the sector supplies materials for construction, it depends on a strong economy. This sector is also sensitive to supply and demand fluctuations because the price of raw materials, such as gold or other metals, is largely demand driven.

The Basic Materials sector (XLB) is currently ahead of the overall market, down only 0.5%, and its biggest movers are currently:

Company	Market Cap	Percentage Change
Cliffs Natural Resources (NYSE:CLF)	$5.78 billion	+3.7%
Sinopec Shanghai Petrochemical Co (NYSE:SHI)	$1.96 billion	+2.8%
Carlisle Companies (NYSE:CSL)	$3.34 billion	-2.7%
US Steel (NYSE:X)	$2.94 billion	+2.6%
RBC Bearings (Nasdaq:ROLL)	$1.07 billion	-2.3%
Dover (NYSE:DOV)	$10.6 billion	-1.9%
Parker-Hannifin (NYSE:PH)	$12.42 billion	-1.7%

Forex Broker Summary: UFXMarkets

Cliffs Natural Resources (NYSE:CLF) has risen 3.7% to hit a current price of $42.08 per share. So far today, 6.8 million shares have changed hands. As a stock moves up or down, it is important to pay attention to the trading volume. This indicates the level of interest: the higher the volume, the more the interest.

Sinopec Shanghai Petrochemical Co (NYSE:SHI) has risen 2.8% and is currently trading at $28.02 per share. The company's volume is currently 6,400 shares for the day, consistent with its current daily average. If a stock is trading on low volume, then there is not much interest in the stock. On the other hand, if a stock is trading on high volume, then there is a lot of interest in the stock.

Carlisle Companies (NYSE:CSL) is down 2.7% to reach $51.89 per share. So far today, 137,579 shares of the company's stock have changed hands. Volume indicates the level of interest that investors have in a company at its current price.

US Steel (NYSE:X) is at $20.90 per share after an increase of 2.6%. The company's volume for the day so far is 8.2 million shares, 0.8 times its current three-month average. A stock's volume conveys how excited investors are about it.

After a decline of 2.3%, RBC Bearings (Nasdaq:ROLL) has hit a share price of $46.73. The company's volume for the day so far is 12,852 shares. Volume is also used as a secondary indicator to help confirm what the price movement is suggesting.

Currently trading at $56.85 per share, Dover (NYSE:DOV) has fallen 1.9%. The company's volume is currently 1.1 million shares for the day, 0.7 times the average daily volume. Volume is an important indicator because it indicates how significant a price shift is.

At $81.84, Parker-Hannifin (NYSE:PH) has slipped 1.7%. The company's volume for the day so far is 434,950 shares. This is about the same trading activity as there was yesterday. When a stock price moves up or down, watching the volume is a good way of identifying how significant that shift is.

The Bottom Line On any given day, a particular stock may see positive or negative change in its share price. It is important to weigh current activity against historical performance when making any investment decisions. However, these fundamental metrics must be analyzed with historic data, industry information in addition to firm specific financial statements.