The

basic materials

sector closed the day down 2%.

Torch Energy Royalty

(

TRU

),

AK Steel Holding Corporation

(

AKS

),

HollyFrontier

(

HFC

), and

Western Refining Inc

(

WNR

) were all decliners today within the basic materials sector with

Dow Chemical

(

DOW

) being today's featured basic materials loser. Dow Chemical fell $1.41 (-5%) to $26.49 on average volume. Throughout the day, 16.4 million shares of Dow Chemical exchanged hands as compared to its average daily volume of 13.4 million shares.

The Dow Chemical Company manufactures and supplies products used as raw materials in the production of customer products and services worldwide. Dow Chemical has a market cap of $32.2 billion and is part of the

chemicals

industry. The company has a P/E ratio of 12.5, equal to the average chemicals industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are down 20.2% year to date as of the close of trading on Monday.

TheStreet Ratings rates The Dow Chemical as a

hold

. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income and revenue growth. However, as a counter to these strengths, we also find weaknesses including poor profit margins, weak operating cash flow and a generally disappointing performance in the stock itself.

On the positive front,

Lake Shore Gold

(

LSG

),

Camac Energy Inc

(

CAK

),

TGC Industries Inc

(

TGE

), and

Sinopec Shanghai Petrochemical Company Limi

(

SHI

) were all gainers within the basic materials sector with

Newmont Mining Corporation

(

NEM

) being today's featured basic materials sector winner.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the basic materials sector could consider

Materials Select Sector SPDR

(

XLB

) while those bearish on the basic materials sector could consider

ProShares Short Basic Materials Fd

(

SBM

).

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