3 Stocks Pulling The Basic Materials Sector Downward

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All three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading up 87 points (0.5%) at 16,606 as of Thursday, May 8, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,938 issues advancing vs. 1,065 declining with 159 unchanged.

The Basic Materials sector currently sits down 0.4% versus the S&P 500, which is up 0.5%. On the negative front, top decliners within the sector include Continental Resources ( CLR), down 5.7%, Sunoco Logistics Partners ( SXL), down 3.3%, Plains All American Pipeline ( PAA), down 3.1%, Devon Energy ( DVN), down 2.8% and Energy Transfer Partners ( ETP), down 2.3%. Top gainers within the sector include Total ( TOT), up 1.9%, Spectra Energy ( SE), up 1.6%, China Petroleum & Chemical ( SNP), up 1.0%, PetroChina ( PTR), up 0.8% and Royal Dutch Shell ( RDS.B), up 0.7%.

TheStreet would like to highlight 3 stocks pushing the sector lower today:

3. Vale ( VALE) is one of the companies pushing the Basic Materials sector lower today. As of noon trading, Vale is down $0.22 (-1.6%) to $13.33 on average volume. Thus far, 9.9 million shares of Vale exchanged hands as compared to its average daily volume of 21.1 million shares. The stock has ranged in price between $13.21-$13.61 after having opened the day at $13.60 as compared to the previous trading day's close of $13.55.

Vale S.A. is engaged in the research, production, and sale of iron ore and pellets, nickel, fertilizer, copper, coal, manganese, ferroalloys, cobalt, platinum group metals, and precious metals. Vale has a market cap of $69.0 billion and is part of the metals & mining industry. Shares are down 11.2% year-to-date as of the close of trading on Wednesday. Currently there are 6 analysts that rate Vale a buy, 2 analysts rate it a sell, and 6 rate it a hold.

TheStreet Ratings rates Vale as a hold. The company's strengths can be seen in multiple areas, such as its expanding profit margins and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity. Get the full Vale Ratings Report now.

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