The Nasdaq is down 0.1%, the S&P 500 has declined 0.2% and the Dow has decreased 0.1%, marking a bad morning for the market. 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 lagging behind the overall market, down 0.1%, and its current biggest movers are:
|Company||Market Cap||Percentage Change|
|NewMarket (NYSE:NEU)||$3.21 billion||+15.5%|
|Eastman Chemical (NYSE:EMN)||$7.42 billion||+10.3%|
|Olin (NYSE:OLN)||$1.74 billion||-4.2%|
|Trex Company (NYSE:TREX)||$579.5 million||-3.5%|
|Cliffs Natural Resources (NYSE:CLF)||$5.44 billion||-3.2%|
|Kaydon (NYSE:KDN)||$685.3 million||+2.3%|
|Rockwood Holdings (NYSE:ROC)||$3.68 billion||-2.1%|
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NewMarket (NYSE:NEU) is trading at $276.91 per share, a significant rise of 15.5%. The company's volume for the day so far is 156,743 shares, 3.5 times the average volume over the last three months.
Eastman Chemical (NYSE:EMN) has soared 10.3% to reach a current price of $59.20 per share. So far today, the company's volume is 2.8 million shares.
Falling 4.2%, Olin (NYSE:OLN) is currently at a share price of $20.84. So far today, the company's volume is 558,841 shares, 1.5 times its current daily average.
Trex Company (NYSE:TREX) is trading at $33.28 per share, down 3.5%. So far today, the company's volume is 65,397 shares. This is on pace to fall short of yesterday's volume of 417,820 shares.
Cliffs Natural Resources (NYSE:CLF) has fallen 3.2% and is currently trading at $36.97 per share. The company's volume is currently 5.9 million shares for the day, 0.7 times its current three-month average.
Increasing 2.3%, Kaydon (NYSE:KDN) is trading at $21.85 per share. So far today, 96,334 shares have changed hands.
Rockwood Holdings (NYSE:ROC) has decreased to $46.36 per share, a 2.1% fall. So far today, the company's volume is 704,359 shares, 1.1 times the current daily average.
The Bottom Line The nature of the market is such that stocks will have good days and bad days. Paying close attention to the previous ratios will help you identify key times to adjust your strategy. Keep in mind that all these ratios should be compared against historical numbers and industry information in order to get a more complete picture.